CRIC (QUÉBEC) TAX CREDITS + SR&ED (CANADA)
Confiance IA shapes your AI projects to align with the eligibility requirements of Québec’s and Canada’s key R&D tax credit programs. Detailed tax advice remains the responsibility of your tax specialists and accountants, but we structure the project to facilitate their work.
CRIC – Tax credit for research, innovation, and commercialization (Québec)
<CRIC – the Québec tax credit for research, innovation, and commercialization is a refundable tax credit for corporations that carry out eligible scientific research and experimental development (R&D) or pre-commercialization activities in Québec.
It applies to taxation years beginning after March 25, 2025.
Eligible companies must operate a business in Québec, maintain an establishment in the province, and conduct (or have conducted) qualifying R&D or pre-commercialization work.
EXAMPLES OF ELIGIBLE R&D ACTIVITIES :
- Pure or applied research
- Experimental development aimed at creating or improving materials, products, devices, or processes
ELIGIBLE PRE-COMMERCIALIZATION ACTIVITIES (BUILDING ON THE R&D):
- Any testing, technological validation, and studies required for initial approval or certification.
- Product design (shape, aesthetics, features, material selection)
ELIGIBLE COSTS INCLUDE :
- Salaries and wages of employees in R&D or pre-commercialization activities
- 50% of the amounts paid to subcontractors for work performed in Québec
- 50% of payments made to a public research centre, research consortium, or eligible university bodies
- Certain equipment purchases (excluding land and buildings)
CRIC CREDIT RATES :
- 30% on a maximum amount of $1M of eligible expenditures above the exclusion threshold
- 20% on eligible expenditures exceeding that amount
Scientific Research & Experimental Development (Canada) – (SR&ED)
SR&ED is a federal program that encourages businesses to conduct R&D in Canada.
Companies that carry out SR&ED work may :
- Claim eligible expenses as deductions from taxable income
- Receive an investment tax credit to reduce their tax liability
INVESTMENT TAX CREDIT (ITC):
- Base rate: 15%
- Increased to 35% for certain Canadian-controlled private corporations (CCPCs) that meet specific criteria
- Refundable in some instances
The two programs (CRIC and SR&ED) are designed for consistency: For instance, Québec and the Canada Revenue Agency adopt the same definition of R&D.
What Confiance IA does regarding tax credits
- Translates your business challenges into a structured R&D/pre-commercialization project
- Documents the project (objectives, technological uncertainties, hypotheses, methods) to make your tax specialists’ and accountants’ work easier
- Aligns your project’s financial structure: grants, tax credits, partner contributions, in-kind contributions
- Coordinates with your partners (CRIM, universities, tax firms) to ensure consistency