Quebec Innovation and AI Industry Grants: Eligible Expenses

By GrantHub Research Team · · Lire en français

Quebec Innovation and AI Industry Grants: Eligible Expenses

Quebec offers some of the most targeted funding in Canada for artificial intelligence (AI) and applied innovation. For industry-led projects, the main challenge is not the idea. It is knowing which expenses are actually eligible and which ones will be rejected. This matters because Quebec AI grants often reimburse only a portion of approved costs. Sometimes, the coverage is as low as 35%.

This guide explains Quebec innovation and AI industry grants, focusing on eligible expenses under PARTENAR‑IA and similar collaborative R&D programs.


Eligible Expenses Under Quebec AI and Innovation Grants

Most Quebec AI industry funding programs support collaborative R&D projects between businesses and research centres. Eligible expenses are clearly defined and checked during audits.

PARTENAR‑IA — CRITM — Industry (Primary Example)

The PARTENAR‑IA — CRITM — Industry program funds AI projects in the metal transformation sector. It provides non-refundable funding of up to $1.5 million and can cover up to 35% of eligible project costs.

To qualify, your business must partner with an eligible Quebec research centre or academic institution.

Common Eligible Expense Categories

Most Quebec AI grants, including PARTENAR‑IA, accept expenses in these categories:

1. Salaries and Wages (Project-Specific)

  • Employees working directly on the AI R&D project
  • Researchers, engineers, data scientists, and technical staff
  • Employer-paid benefits linked to eligible salaries

General admin staff, executives, or sales teams are not eligible.

2. Research Centre or Academic Partner Costs

  • Contracted research services
  • Access to labs or specialized infrastructure
  • Knowledge transfer and technical supervision

These costs must be directly related to the approved project.

3. AI Development and Technical Costs

  • Data preparation and processing
  • Algorithm development and model training
  • Prototyping and validation of AI systems

Routine IT upgrades or off-the-shelf software are usually not allowed unless they are essential for the R&D.

4. Specialized Equipment and Materials

  • Equipment used exclusively or primarily for the project
  • Sensors, testing tools, or pilot-scale hardware
  • Depreciation costs (not always the full purchase price)

You must justify equipment expenses in your project budget.

5. Subcontracting and External Expertise

  • Specialized AI consultants
  • Technical subcontractors not available in-house

Subcontracting must follow Quebec public funding rules and fair-market rates.


Expenses That Are Usually Not Eligible

Across Quebec innovation and AI industry grants, these costs are often rejected:

  • Marketing, sales, and commercialization costs
  • General overhead not tied to the project
  • Debt servicing or refinancing
  • Routine operations or maintenance
  • Costs incurred before formal project approval

Knowing these exclusions early can help you avoid wasted effort.


Other Quebec Innovation Programs with Similar Rules

While PARTENAR‑IA is sector-specific, other Quebec innovation programs follow similar expense rules:

  • INNOV‑R — PRIMA
    Covers up to 50% of eligible costs, with funding up to $500,000 per year for three years. Focuses on collaborative R&D with environmental outcomes.

  • Federal–Provincial AI Co‑Investment Programs
    Some AI programs, such as collaborative AI initiatives supported by industry consortia, also fund salaries, research contracts, and technical development. They rarely fund commercialization.

Rules can vary, but the main expense categories are similar.

If you want to compare Quebec programs by eligible expenses, GrantHub’s eligibility matcher can help you filter programs by province, industry, and expense type.


Common Mistakes to Avoid

  1. Including commercialization costs too early
    Quebec AI grants focus on R&D. Go-to-market expenses usually belong in later-stage programs.

  2. Overestimating internal staff eligibility
    Only time spent directly on the approved project counts. Poor time tracking is a common audit issue.

  3. Buying equipment before approval
    Expenses incurred before official project authorization are almost always ineligible.

  4. Weak justification for subcontractors
    External expertise must be essential and not easily available internally.


Frequently Asked Questions

Q: Can AI software licences be claimed as eligible expenses?
Yes, if the software is essential to the R&D and used specifically for the approved project. General business software is not eligible.

Q: Are founders’ salaries eligible under Quebec AI grants?
Sometimes. Founder salaries may be eligible only if the founder performs technical R&D work and is paid at a reasonable market rate.

Q: Can PARTENAR‑IA funding be stacked with other grants?
Stacking may be allowed, but total government assistance caps apply. You must disclose all funding sources.

Q: Do eligible expenses need to be incurred in Quebec?
Yes. Most Quebec innovation programs require that the majority of project activities and expenses occur in Quebec.

Q: Are AI pilot projects eligible, or only early research?
Pilot-scale validation is often eligible if it remains pre-commercial and research-focused.


  • What Business Expenses Are Eligible Across Canadian Grants and Loans?
  • How to stack grants and loans without violating funding rules
  • Impulsion PME vs Other Quebec Startup Funding Programs

Next Steps

Quebec innovation and AI industry grants can cover a significant part of your R&D costs, but only if you plan your expenses carefully. To see which Quebec AI and innovation programs match your business, you can use GrantHub to compare active grants across Canada before you prepare your application.

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