Quebec SR&ED Tax Credits Up to 64%
Combine the federal SR&ED credit with the Quebec R&D Tax Credit to maximize your R&D tax recovery in Quebec.
Quebec R&D Tax Credit
Quebec offers the most generous R&D tax credits in Canada — and among the highest in the world. The base provincial rate is 14%, but eligible SMEs can claim up to 30% on the first $50K of eligible salaries per researcher. Combined with the federal 35% enhanced rate, Quebec-based CCPCs can recover up to 64% of R&D costs. Montreal's AI hub (Mila), Quebec City's tech corridor, and Sherbrooke's innovation ecosystem make Quebec a powerhouse for R&D.
Provincial Credit Rate
14%–30%
SME Enhanced Rate
Up to 30%
Refundable
Yes
Combined Max Rate (CCPC SME)
Up to 64%
Combined Max Rate (Large Corp)
29%
Salary Cap (Enhanced)
$50K per researcher
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
Refundable
Effective rate: Up to 64%
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.
Quebec Eligibility Requirements
- Must have an establishment in Quebec where R&D is performed
- SME enhanced rate (up to 30%) applies to companies with less than $75M in assets
- The enhanced rate applies to the first $50,000 of salary per eligible researcher
- Above $50K per researcher, the base 14% rate applies
- Quebec uses its own eligibility criteria which largely align with federal SR&ED
- Must file Revenu Québec forms (RD-1 and CO-1029.8.16.1)
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 — ESSOR Program
Provides loans, loan guarantees, and equity investments to support innovation and growth in Quebec companies.
PRIMA Québec
Funds collaborative R&D projects in advanced materials and manufacturing processes between industry and research institutions.
Quebec Innovation Council (Conseil de l'innovation)
Coordinates provincial innovation strategy and provides advisory services for R&D-intensive 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.
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
Why is Quebec's R&D credit so high?
Quebec intentionally offers the highest R&D credits in Canada to attract and retain R&D-intensive companies. The SME enhanced rate of up to 30% (on the first $50K per researcher) combined with the federal 35% creates an effective rate of up to 64% — among the highest in the world.
What is the Quebec SME enhanced rate?
Eligible SMEs (companies with less than $75M in assets) can claim up to 30% on the first $50,000 of salary per eligible researcher. Above that threshold, the base 14% rate applies. The enhanced rate phases out as assets approach $75M.
Do I need to file separately with Revenu Québec?
Yes. Quebec has its own R&D tax credit program administered by Revenu Québec, separate from the federal SR&ED claim with the CRA. You must file form RD-1 (R&D declaration) and CO-1029.8.16.1 with your Quebec corporate tax return.
Can I claim both federal SR&ED and Quebec R&D credits?
Yes. The federal and Quebec credits stack. However, the Quebec credit reduces the federal SR&ED pool (you cannot double-count the same expenditure at full value in both calculations). The net combined benefit still reaches up to 64% for eligible SMEs.