Quebec SR&ED Tax Credits Up to 54.5%
Combine the federal SR&ED credit with the Credit for Research, Innovation and Commercialization (CRIC) to maximize your R&D tax recovery in Quebec.
Credit for Research, Innovation and Commercialization (CRIC)
Quebec's R&D tax credit is the Credit for Research, Innovation and Commercialization (CRIC): a refundable credit that pays 30% on the first $1 million of qualified expenditures above an exclusion threshold and 20% on the excess, for tax years beginning after March 25, 2025. It replaced Quebec's former R&D credit programs and is the richest provincial rate among Canada's major R&D provinces. Because the CRA treats provincial credits as government assistance that reduces your federal expenditure base, the illustrative combined rate with the federal enhanced 35% is roughly 54.5% on the first tier (not the additive 65%) and roughly 48% above it. The CRIC also covers a defined add-on category of pre-commercialization activities — regulatory testing and certification, and product design — when undertaken in conjunction with R&D carried out in Quebec. Quebec's R&D definition is harmonized with federal legislation, and the CRA carries out the scientific review, so you are not arguing eligibility twice.
Provincial Credit Rate
30% (first $1M above threshold) / 20% (excess)
Refundable
Yes
Effective Combined Rate (CCPC, first tier)
≈54.5% (illustrative, after federal grind)
Effective Combined Rate (CCPC, second tier)
≈48% (illustrative, after federal grind)
Exclusion Threshold
Greater of $50K or basic-personal-amount sum per R&D employee (pro-rated by time on eligible work)
Pre-commercialization Add-on
Regulatory testing/certification and product design, in conjunction with Quebec R&D
Quebec Form
RD-1029.8.CR-T, attached to the Quebec corporate return
Federal + QC Credit Stacking
Here's how the credits combine for a CCPC with $500,000 in eligible R&D salaries.
Enhanced rate for CCPCs, applied to the base net of the provincial credit
Refundable
Effective rate: ≈53% (illustrative; assumes the $50K threshold floor)
This example uses salaries only. Including contractor costs (at 80%) and materials would increase the total. Overhead (55% proxy) is added automatically. Use our calculator for a detailed estimate.
How to Claim the QC Credit
The forms, schedules, and deadlines you need to capture the Credit for Research, Innovation and Commercialization (CRIC).
Form
Form RD-1029.8.CR-T, completed and attached to your Quebec corporate income tax return filed with Revenu Québec
Schedule
The CRIC is claimed through the Quebec corporate return itself; your federal SR&ED claim (Form T661 plus Schedule T2SCH31) is filed separately with your T2 to the CRA
Deadline
The RD-1029.8.CR-T travels with your Quebec corporate return. The federal SR&ED reporting deadline is hard: 12 months after your T2 filing due date (18 months after your fiscal year end), with no extensions permitted by law
- 1Confirm your tax year begins after March 25, 2025 — the CRIC only applies to those years; earlier years fall under Quebec's former R&D credit programs
- 2Confirm your work meets the federal SR&ED eligibility test (technological advancement pursued through systematic investigation) — Quebec's definition is harmonized with it and the CRA performs the scientific review
- 3Calculate your exclusion threshold: the greater of $50,000 or the sum of the basic personal amount for each R&D employee, pro-rated by time spent on eligible activities — only qualified expenditures above this line earn the credit
- 4Prepare and file your federal claim: Form T661 and Schedule T2SCH31 with your T2, no later than 18 months after your fiscal year end
- 5Complete Form RD-1029.8.CR-T and attach it to your Quebec corporate income tax return filed with Revenu Québec
- 6Model the interaction correctly: subtract the CRIC from your federal qualified expenditures before applying the federal 35% — the combined benefit is roughly 54.5% on the first tier, never the additive 65%
Quebec Eligibility Requirements
- You must operate a business in Quebec and have an establishment there where eligible R&D or pre-commercialization activities are undertaken (or undertaken on your behalf under contract)
- The CRIC replaced Quebec's former R&D tax credit programs for tax years beginning after March 25, 2025; earlier tax years fall under the former programs
- Quebec's R&D definition is harmonized with federal legislation and the CRA carries out the scientific review — there is no separate provincial science test
- Qualified expenditures include employee salaries and wages, 50% of Quebec subcontract payments, 50% of payments to eligible public research centres, research consortiums, or university entities, and property acquisition costs (excluding buildings, land, or rights to use them)
- The exclusion threshold is the greater of $50,000 or the sum of the basic personal amount for each R&D employee, adjusted for the time each spends on eligible activities — only spend above the threshold earns the credit
- You cannot claim the CRIC and another Quebec tax credit (such as the C3i) on the same expenditure — you must choose one
- On the CRA's assistance policy, Quebec is the exception to the usual rule requiring a permanent establishment in the province where the R&D is performed
Important: Provincial credits are claimed on your Revenu Québec corporate tax return, separate from your federal T661 filing with the CRA. Ensure you file both to capture the full combined benefit.
Other Quebec R&D Incentives
Beyond SR&ED, Quebec offers additional programs that can be stacked with your tax credits.
Investissement Québec
Provides loans, loan guarantees, and equity investments to support innovation and growth in Quebec companies.
Mila — Quebec AI Institute
World-leading AI research lab in Montreal. Companies can collaborate on applied AI research projects with potential SR&ED eligibility.
Who Should Think Twice
SR&ED isn't the right fit for everyone. Skip the claim if any of these describe you.
- Your qualified expenditures won't clear the exclusion threshold. The floor is $50,000, and it rises with R&D headcount (the basic-personal-amount sum per employee) — if your eligible spend above the threshold is nil, the CRIC pays nothing
- Your tax year began on or before March 25, 2025. The CRIC doesn't apply to those years — your claim falls under Quebec's former R&D credit programs instead
- You're claiming another Quebec credit on the same expenditures. You cannot combine the CRIC with credits like the C3i on the same expense, and property tied to a large-investment-project tax holiday is excluded — sometimes the other program is the better pick
Maximize Your Quebec SR&ED Credits
Glauq automates your federal and Quebec provincial SR&ED claims — ensuring you capture every eligible dollar across both programs.
Quebec SR&ED FAQ
What is the Quebec CRIC and when did it take effect?
The Credit for Research, Innovation and Commercialization (CRIC) is Quebec's refundable R&D tax credit for tax years beginning after March 25, 2025, replacing the province's former R&D credit programs. It pays 30% on the first $1 million of qualified expenditures above an exclusion threshold and 20% on the excess, covering both R&D and a defined category of pre-commercialization activities.
How do the federal SR&ED credit and the Quebec CRIC combine?
By subtraction, not addition. The CRA treats the CRIC as government assistance that reduces your federal qualified expenditures before the federal 35% is calculated. Illustratively, the first tier works out to roughly 54.5% combined (30% plus 35% of the remaining 70%) rather than the additive 65%, and the second tier to roughly 48% rather than 55%. The exact result depends on your expenditure mix and how overhead is treated.
What expenses qualify for the CRIC?
Salaries and wages paid to your employees for R&D or pre-commercialization work in Quebec, 50% of amounts paid to subcontractors for contracts carried out in Quebec, 50% of payments to eligible public research centres, research consortiums, or university entities, and property acquisition costs — excluding buildings, land, or rights to use a building or land. Any government or non-government assistance received for those expenses is subtracted first.
Does the CRIC cover work beyond traditional R&D?
Yes, one defined add-on category: pre-commercialization activities. That means tests, technological validations, and studies carried out to meet regulatory requirements for an initial approval or certification, and product design including form, aesthetics, functionality, and choice of materials. These activities must be undertaken in conjunction with R&D carried out in Quebec — they extend an eligible R&D claim rather than replacing the eligibility test.
Is Quebec's eligibility test different from the federal SR&ED test?
No. Quebec legislation is harmonized with federal legislation on the definition of R&D, and the Canada Revenue Agency carries out the scientific review of the R&D work. If your project clears the federal bar, you are not facing a second, different eligibility argument at the provincial level — only the pre-commercialization add-on is assessed under Quebec's own rules.
Do I file the CRIC separately from my federal SR&ED claim?
Yes. The CRIC is claimed on Form RD-1029.8.CR-T attached to your Quebec corporate income tax return filed with Revenu Québec, while your federal claim goes to the CRA on Form T661 with Schedule T2SCH31 and your T2. Both filings need to be complete and on time — a correct federal claim with no Quebec form leaves the richest provincial credit in Canada unclaimed.