Revenu Quebec Important Note: You can either claim CDAE Tax Credits or SR&ED tax credits. Please consult with a Tax credit expert to decide which one to claim.

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Type

Provincial tax credit

What

This program is intended for taxpayers who wish to claim a tax credit for salaries and wages related to IT consulting relating to echnology, systems development, or e-business processes.

Value

• The tax credit is equal to 30% (24% refundable and 6% non-refundable) of the eligible salaries paid by the corporation to eligible employees.

Eligibility

• Your corporation may be eligible if the activities it carries out are primarily in the fields of information system design or software publishing and they are carried out in an establishment in Québec.
  • that at least 75% of its activities are in the IT sector1 and that at least 50% of these activities are covered by NAICS codes 541514, 541515, 511211, 511212 and, under certain conditions, 561320 and 561330, for the taxation year covered by the eligibility certificate application or for the prior taxation year;
  • that at least 75% of its activities are in the IT sector1 and that at least 50% of these activities are covered by NAICS codes 541514, 541515, 511211, 511212 and, under certain conditions, 561320 and 561330, for the taxation year covered by the eligibility certificate application or for the prior taxation year;
  • that it maintained, at all times, for a given taxation year, a minimum of six eligible full-time employees; however, specific rules apply to transfers of activities and business start-ups in Québec.

Eligible Expenses

• Salaries of employees that dedicate at least 75% of their time for:
  • IT consulting services relating to technology, systems development, or e-business processes
  • Development and integration as well as maintenance and evolution of:
    • information systems (for instance, distribution packages, software and computer programs);
    • technology infrastructure (for instance, technology architecture upgrading and integration of hardware and software components).
  • Design and development of e-commerce solutions allowing for monetary transactions between the person on whose behalf this design or development was done and that person’s customers.
  • Development of security and identification services (for instance, electronic imaging, artificial intelligence and interface) relating to e-commerce activities (for instance, security over Internet networks).
• Sub-contractor

Application

• Application form

Link

Website

D3 Advantage

D3 has an expert Marwan Bitar (Innoprofits) that can assist you in applying for SR&EDs