Tax Credit for e-business Development

The Tax Credit for the Development of E-Business (CDAE) offers refundable and non-refundable tax credits to businesses in Québec's information technology sector to support job creation and growth in e-business activities.

Investissement Quebec

Overview of the Tax Credit for e-business Development program:

The CDAE program encourages the development and expansion of e-business in Québec by offering significant tax incentives to eligible corporations that carry out IT-related activities. Administered by Investissement Québec, the program targets businesses involved in information technology services and development, such as software publishing, systems design, and digital transaction platforms. It offers a refundable tax credit for salaries paid to eligible employees working in specific roles that contribute to e-business development. Additionally, a non-refundable tax credit can be claimed for the same employees, depending on the company’s corporate tax obligations. To qualify, the business must operate in Québec, have a minimum percentage of its activities related to eligible e-business functions, and meet payroll thresholds. The CDAE helps improve Québec’s competitiveness in the global digital economy by attracting and retaining skilled labor in high-value-added sectors and fostering innovation in IT infrastructure and e-commerce systems.

Benefits of the Tax Credit for e-business Development program:

Substantial tax savings on eligible IT salaries (up to $25,000/employee annually)
Supports hiring and retention of highly qualified IT professionals
Enhances company competitiveness in e-business and digital markets
Helps offset labor costs for growing tech businesses
Encourages digital transformation and innovation in Quebec
Supports long-term growth and development in the IT and digital transaction ecosystem

Eligibility criteria of the Tax Credit for e-business Development program:

To qualify for the CDAE, businesses must:
Be a Quebec-based corporation
Operate primarily in information technology or digital business services
Derive at least 75% of revenue from eligible IT activities
Have a minimum of 6 eligible employees in full-time positions
Pay each eligible employee a minimum salary of $40,000/year
Obtain annual eligibility certificates from Investissement Quebec and Revenu Quebec
Be compliant with Quebec tax obligations
Eligible activities include:
Software publishing
Custom software design and development
IT consulting
Web portal management
E-commerce infrastructure services
Data processing and hosting