How to Budget an AI R&D Project to Maximize Quebec Grant Funding

AI R&D projects cost a lot. Salaries, cloud computing, data prep, and research partners all add up quickly. In Quebec, programs like PARTENAR-IA — INNOVÉÉ — Industry can pay for up to 50% of eligible costs—but only if you build your budget the right way from the start.

This guide shows you how to build an AI R&D budget that matches Quebec grant rules and helps you get the most public funding possible.

How Quebec AI Grants Review Your Budget

Quebec AI programs do not fund ideas. They fund detailed projects with eligible expenses tied to R&D outcomes. Reviewers look at your budget right away.

Here are two main programs that set the rules for AI R&D budgeting:

PARTENAR-IA — INNOVÉÉ — Industry

Maximum funding: Up to $1.5 million per project
Funding share: Up to 50% of eligible costs
Project type: Collaborative AI R&D
Required partners:
- At least one other business
- At least one research centre
Eligible sectors:
- Electricity systems
- Smart grids
- Transportation electrification
- Intelligent vehicles
Status: Open
Jurisdiction: Quebec

Quebec Collaborative AI Innovation Program (MEI)

Maximum funding: Up to $1.5 million per project
Funding share:
- Up to 50% for startups
- Up to 35% for large companies
Project duration: Up to 24 months
Stacking limit: Public funding cannot be more than 75% of total project costs
Use case: Industrial AI research and tech development
Status: Open
Jurisdiction: Quebec

These programs want your budget to clearly show eligible R&D work—not sales or business-as-usual spending.

What Costs Are Eligible for Quebec AI R&D Grants?

To get the most Quebec grant funding, put as much of your budget as you can in the cost types reviewers want to approve.

Common Eligible AI R&D Expenses

Most Quebec AI programs, including PARTENAR-IA, accept these costs:

Salaries and benefits
- Data scientists
- Machine learning engineers
- Research staff
Research partner costs
- University or CCTT contracts
- Applied research services
Subcontracting
- Specialized AI development
- Algorithm validation
Cloud and computing
- Model training and testing
- Data processing
Data-related costs
- Data collection
- Data annotation for R&D
Project management
- Only for R&D work

Your budget should show how each expense supports AI research or experimental development.

GrantHub’s eligibility matcher can help you quickly check which Quebec AI programs fit your cost types and partnerships.

How to Structure Your Budget for Maximum Funding

Reviewers look at the share of each cost, not just the total. Make sure your budget lines up with program rules.

Example: $1,000,000 AI R&D Project (PARTENAR-IA)

Cost Category	Amount
AI staff salaries	$420,000
Research centre	$260,000
Cloud & data	$180,000
Subcontracted AI	$90,000
Project management	$50,000
Total cost	$1,000,000

Maximum grant at 50%: $500,000
Applicant’s share: $500,000

If you include ineligible costs (like sales or marketing), the eligible total drops and your grant is smaller.

Partnering for Quebec AI Grants

PARTENAR-IA requires collaboration. Your budget must show this.

Good Partnership Budget Practices

Give a meaningful share (often 20–40%) to the research centre
List clear deliverables for each partner
Avoid “token” partners with tiny budgets

Weak partner budgets often lead to less funding or project cuts.

Managing Grant Stacking and Funding Limits

Quebec lets you combine grants, but there are limits.

Maximum public funding: 75% of total project costs
This includes Quebec grants, federal programs, and some tax credits

Your budget should show:

Total project cost
Amount requested from each program
Your cash contribution

For more details, see How to stack grants and loans without violating funding rules.

Common Budget Mistakes to Avoid

Including sales or commercialization costs as R&D
Sales, marketing, and customer onboarding are not eligible and will be removed.
Underfunding the research partner
Reviewers expect real collaboration, not just a name on paper.
Missing company size funding limits
Large companies get a lower funding percentage.
Forgetting about cash flow
Grants are paid in steps, usually after you spend the money.

Frequently Asked Questions

Q: Is PARTENAR-IA funding repayable?
No. PARTENAR-IA gives non-repayable grants for eligible AI R&D projects.

Q: Do salaries have to be for new hires?
No. You can include current staff if their time is clearly set aside for AI R&D.

Q: Can cloud costs like AWS or Azure be included?
Yes, if they are needed for AI model training, testing, or data processing.

Q: Do I need to spend the full budget to get the full grant?
Yes. Grant payments are based on real eligible expenses.

Q: Can startups apply with large company partners?
Yes. Mixed partnerships are allowed, but each company’s funding percentage applies.

GrantHub tracks hundreds of grant programs across Canada—see which fit your business.

Next Steps

A clear, well-structured AI R&D budget can help you reach the 50% funding ceiling and avoid surprises. Before you apply, double-check your cost breakdown, partnership shares, and stacking limits using current program rules. GrantHub makes it easier to compare Quebec AI grants and check your eligibility before you start your application.

How to Budget an AI R&D Project to Maximize Quebec Grant Funding