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 offers the most generous provincial R&D credit rates in Canada. For tax years beginning after March 25, 2025, Quebec replaced its former R&D credit programs with the new Credit for Research, Innovation and Commercialization (CRIC). The CRIC provides a 30% refundable credit on the first $1M of eligible expenses (above an exclusion threshold) and 20% on the excess. Because the CRA treats provincial credits as government assistance that reduces the federal expenditure base, the effective combined rate with the federal enhanced 35% is roughly 54.5% on the first tier (not the additive 65%) and roughly 48% above it. 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
30% (first $1M) / 20% (excess)
Refundable
Yes
Effective Combined Rate (CCPC, first tier)
≈54.5% (after federal grind)
Effective Combined Rate (CCPC, second tier)
≈48% (after federal grind)
Exclusion Threshold
Greater of $50K or sum of basic personal amounts per employee
Program
CRIC (replaced former R&D credits)
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%
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
- The CRIC replaced Quebec's former R&D tax credit programs for tax years beginning after March 25, 2025
- 30% rate applies to the first $1M of eligible expenses above the exclusion threshold
- 20% rate applies to eligible expenses exceeding $1M
- The exclusion threshold is the greater of $50,000 or the sum of the basic personal amount for each employee prorated by their time on eligible work
- Must file with Revenu Québec using the new prescribed CRIC form
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.
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?
The Credit for Research, Innovation and Commercialization (CRIC) is Quebec's new provincial R&D tax credit, replacing the former R&D credit programs for tax years beginning after March 25, 2025. It provides a 30% refundable credit on the first $1M of eligible expenses (above an exclusion threshold) and 20% on the excess.
Why is Quebec's R&D credit so high?
Quebec intentionally offers the highest provincial R&D credit rates in Canada to attract and retain R&D-intensive companies. The CRIC pays 30% on the first $1M above the exclusion threshold — but because the CRIC reduces the base the federal 35% applies to, the effective combined rate is roughly 54.5% on that tier, not the additive 65% that often gets quoted.
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. A new prescribed form for the CRIC will be available from the Ministère des Finances.
Can I claim both federal SR&ED and Quebec CRIC credits?
Yes. The federal and Quebec credits stack, but the Quebec credit is government assistance that reduces the federal SR&ED expenditure base — so the net combined benefit on the first $1M tier is roughly 54.5%, not the additive 65%.