Quebec R&D Tax Credit

Quebec R&D Tax Credit is sponsored by Investissement Québec. Provides a 14% refundable tax credit on eligible research and development expenditures for Quebec-based companies.

Quebec R&D Tax Credit (CRIC — Research, Innovation and Commercialization) — Eligibility, Funding & How to Apply | GrantCompass Updated March 2026 · Verified against Government of Quebec guidelines Quebec R&D Tax Credit (CRIC — Research, Innovation and Commercialization) Visit Official Program → Quebec R&D Tax Credit (CRIC — Research, Innovation and Commercialization) provides up to 20-30% tax credit (CRIC) tax credit for eligible R&D expenditures incurred in Quebec.

Applications are accepted on an ongoing basis . (As of March 2026, verified against Government of Quebec program guidelines) What this program funds and who can apply Refundable tax credit for eligible R&D expenditures incurred in Quebec.

Corporation incorporated and filing taxes in Quebec (sole proprietors and partnerships ineligible) Has a permanent establishment in Quebec Conducting eligible scientific research and experimental development (SR&ED) activities in Quebec R&D expenditures are Quebec-attributable Tax return filed within the prescribed deadline (18 months of fiscal year-end) Must be incorporated and filing Canadian corporate taxes Up to 30% of eligible costs Competition, effort, and approval at a glance See how this program compares on approval odds, difficulty, and competition — so you know if it’s worth your time.

Try Free for 7 Days → Know your real odds before investing 40+ hours Approval likelihood, realistic amounts, competition level, and what winners look like Try Free for 7 Days → What You Need to Get Approved Everything reviewers look for — so you apply with confidence, not guesswork Insider tips, common pitfalls, and what successful applicants look like The CRIC's 30% rate on the first $1M of eligible expenditures is significantly more valuable than most Quebec companies realize — combined with federal SR&ED at 35%, a qualifying CCPC can recover 55-65% of the first million in R&D wages and capital as cash refunds.

The new pre-commercialization component is also underutilized: if your company conducts R&D in Quebec and then moves to prototyping or pilot manufacturing, those costs can now be included in the CRIC base.

Two critical cautions: (1) the CRIC form was not yet available as of early 2026 — companies with fiscal years beginning after March 25, 2025 should monitor Revenu Québec for form release and plan claim prep accordingly; (2) the exclusion threshold (~$50,000 per employee in R&D time) reduces the base before the 30% rate applies, but is still very favorable.

Use a specialist for first-time claims — the interaction between federal T661 and the new Quebec form, plus the pre-commercialization documentation requirements, make DIY preparation risky. See what trips up most applicants for this program — and how to avoid it.

Try Free for 7 Days → Work characterized as routine engineering, product improvement, or standard practice — must demonstrate genuine technological uncertainty Pre-commercialization activities not directly resulting from R&D work conducted in Quebec by the same corporation Double-claiming the same expenditure under CRIC and another Quebec tax credit (e.g., C3i Investment and Innovation Tax Credit) See the most common reasons applications get rejected — before you submit yours.

Try Free for 7 Days → Quebec-based CCPC (Canadian-Controlled Private Corporation) with 5–100 employees in technology, software, advanced manufacturing, AI, biotech, or clean technology. Has salaried technical employees spending 30–70% of their time on genuine R&D or directly linked pre-commercialization activities.

Has (or can build) contemporaneous documentation of technological uncertainty, hypotheses, and experimental procedures. Receives both federal SR&ED and CRIC simultaneously, maximizing the 55–65% combined refundable rate on first $1M eligible. Companies with capital equipment purchases for R&D are newly advantaged under CRIC vs. the legacy regime.

See what successful applicants for this program actually look like. Try Free for 7 Days → Non-competitive entitlement with dual review structure. CRA independently reviews the federal SR&ED eligibility using the five-question framework (technological uncertainty, systematic investigation, advancement, technical content, purpose).

Revenu Québec independently reviews CRIC-specific eligibility, including the pre-commercialization linkage test and Quebec nexus. Both reviews must be passed for full credit realization. Revenu Québec has historically been active in provincial SR&ED reviews — larger claims have elevated review probability.

See exactly what reviewers score on — so you know where to focus.

Try Free for 7 Days → Don’t waste 60 hours on a preventable rejection 9 reasons applications get rejected, what winners look like, and exactly what reviewers score on Try Free for 7 Days → Step-by-step process, required documents, and expenses Document eligible R&D and pre-commercialization activities throughout the year Maintain contemporaneous records for all SR&ED activities (meeting CRA's five-question framework) and for pre-commercialization activities (documenting the direct linkage to preceding Quebec R&D).

Keep separate records for the two activity types as CRIC-specific regulations may require distinct documentation for the pre-commercialization component. Monitor Revenu Québec for the CRIC claim form release The CRIC-specific form was not publicly available as of early 2026 (for fiscal years beginning after March 25, 2025). Check revenuquebec.

ca for the updated form before preparing the claim. For fiscal years under the legacy program, use the prior Quebec SR&ED form. File federal T661 (SR&ED Expenditures Claim) within 18 months of fiscal year-end Complete all T661 sections with detailed technical project descriptions.

Note that CRIC's subcontractor rate (50% eligible) differs from federal SR&ED (80% eligible) — the two claims will have different expenditure bases for subcontractor costs.

✓ New CRIC prescribed form (Revenu Québec — form number TBD, to be released in 2025) ✓ Quebec CO-17 Corporation Income Tax Return ✓ Federal Form T661 — SR&ED Expenditures Claim (for simultaneous federal claim) ✓ Federal Schedule T2SCH31 — Investment Tax Credit ✓ Contemporaneous technical records: lab notebooks, design documents, test logs, engineering records, meeting minutes ✓ Timesheet records allocating employee hours to eligible R&D and pre-commercialization activities ✓ Payroll records supporting wage/salary claims ✓ Subcontractor invoices and contracts (50% of costs eligible under CRIC) ✓ Capital equipment purchase records (newly eligible under CRIC) ✓ Project technical descriptions addressing: technological uncertainty, hypotheses, experimental procedures, results, conclusions Salaries and wages for employees conducting basic research, applied research, or experimental development in Quebec (after per-employee exclusion amount of ~$50,000/year) Arm's-length subcontractor payments for eligible R&D activities at 50% of amounts paid (note: 80% for federal SR&ED — CRIC uses lower 50% rate) Capital expenditures for machinery and equipment used in eligible R&D activities (newly eligible under CRIC, previously excluded) Pre-commercialization activities directly resulting from R&D conducted in Quebec by the same corporation (new under CRIC) Eligible overhead (method to be confirmed in implementing regulations) Marketing, market research, and promotion activities Routine quality control testing Administration and management activities Pre-commercialization activities not directly resulting from Quebec R&D by the same corporation Activities performed outside Quebec Land, buildings, and leasehold interests Expenditures covered by another Quebec tax credit that prohibits double-claiming (e.g., C3i Investment and Innovation Tax Credit on same activities) Ongoing — no intake windows.

File CO-17 within 18 months of fiscal year-end (standard deadline is 6 months after year-end). Federal T661 prerequisite must be filed within 18 months. CRITICAL PROGRAM CHANGE: For taxation years beginning after March 25, 2025, the legacy Quebec SR&ED credit is replaced by the CRIC (Tax Credit for Research, Innovation and Commercialization).

For legacy years (fiscal years beginning before March 26, 2025), claims can still be filed until September 25, 2026. The CRIC claim is filed annually with the CO-17 Quebec corporation tax return, within 18 months of fiscal year-end. No annual application window — claim is made for each eligible taxation year.

Open Application Portal → Sole proprietors and self-employed individuals (CRIC is corporations-only) Partnerships (cannot claim directly) Tax-exempt entities (registered charities, non-profits without taxable income) Corporations without a permanent establishment in Quebec Corporations conducting all R&D outside Quebec Get the step-by-step application guide — documents, timeline, and what to prepare.

Try Free for 7 Days → Compatible programs, clawback risk, and combined funding potential CDAE-IA (AI digital business development credit) Combined Funding Potential See your total funding potential Moderate. Revenu Québec independently reviews CRIC claims and can reassess them independently of CRA. If CRA reduces the federal SR&ED base, the CRIC must be recalculated using revised expenditure figures.

The pre-commercialization component (new under CRIC) carries higher initial characterization risk given limited administrative precedent. Interest accrues on over-claimed amounts from the original credit payment date. See which programs combine with this one — and how much more you could get.

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