If your Quebec-based tech company develops or operates digital products that use artificial intelligence, you may be eligible for significant tax credits. Investissement Québec offers two related programs that refund part of the eligible salaries tied to AI-driven e‑business activities. These credits are claimed through your corporate tax return, not through a grant application. This affects when and how you receive the funds.
This guide explains how to claim Investissement Québec’s AI and e‑business tax credits, outlines who qualifies, and lists what you should prepare before filing.
Quebec encourages digital innovation through the Développement des affaires électroniques (DAE) tax credit and a special stream for businesses that use artificial intelligence in a major way.
This stream is for companies whose e‑business activities use artificial intelligence as a core part of their products or services. Investissement Québec manages this program, and you claim it once per year.
Key facts:
According to Investissement Québec’s official guidelines, there is no set maximum amount. The credit amount depends on the total eligible salary expenses for approved AI-related e‑business activities – Artificial Intelligence Stream”).
This broader DAE tax credit supports other e‑business activities in the IT sector, even if they do not use AI.
Key facts:
The AI stream has extra requirements for artificial intelligence integration, compared to the base DAE program.
To claim these tax credits, your business must meet both company-level and activity-level requirements.
Your e‑business activities must:
Investissement Québec will look at your technical documents. They review things like product architecture and how important AI is to your offering. They use this information to decide if your business has “significant integration” of AI.
The tax credit is calculated based on eligible salaries. It does not cover all project costs.
Usually eligible:
Not usually eligible:
Accurate time tracking and clear job descriptions are important for a successful claim.
You need to complete two main steps with Investissement Québec and during your corporate tax filing.
Apply to Investissement Québec for eligibility certification. This confirms:
You must have this certification before Revenu Québec can process your tax credit.
Processing times can vary. Refunds are usually issued after Revenu Québec reviews your claim.
If you want to check which Quebec tax credits match your business activity and technology focus, GrantHub provides updated information on eligibility and program details across Canada.
Treating this like a grant
These are tax credits, not grants. You claim them after you have paid salaries, not before.
Not providing enough detail about AI integration
General statements like “uses machine learning” are not enough. Investissement Québec expects detailed technical descriptions.
Including ineligible employees
Salaries for sales, HR, or general management staff are usually not eligible.
Skipping the certification step
Revenu Québec will not approve the credit without Investissement Québec’s certification.
Q: Is Investissement Québec’s AI e-business support a grant or a tax credit?
It is a tax credit, not a grant. Part of it is refundable, so you can receive cash even if you do not owe Quebec income tax.
Q: How much can my business receive?
There is no fixed maximum. The amount depends on eligible Quebec-based salaries, with up to 30% credited under the DAE structure. This is based on Investissement Québec’s official guidelines.
Q: What does “significant integration of artificial intelligence” mean?
AI must be central to your product or service. It should power main features, not just provide minor automation or reporting.
Q: Can this tax credit be combined with SR&ED?
Sometimes, yes, but the rules are complex. If you claim the same salaries for both, there may be adjustments. It is best to seek professional tax advice.
Q: Is the refundable portion considered taxable income?
Generally, refundable tax credits are included in taxable income. Non-refundable credits reduce taxes payable. Your accountant can confirm the details for your business.
Claiming Investissement Québec’s AI and e-business tax credits can help you recover a portion of your payroll costs if your activities and documentation meet program standards. GrantHub tracks hundreds of grant and tax credit programs across Canada, including Quebec’s AI and digital transformation incentives, and helps you stay informed about funding opportunities for your business.
See also:
If artificial intelligence is central to your business, consider these tax credits in your financial planning before you file your taxes.
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