The landscape for Québec’s innovation incentives is changing.

If you’re a software, AI, or digital product company currently claiming the CDAE (Tax Credit for the Development of E-Business), a new chapter is on the horizon. Starting in 2026, CDAE will transition into CDAEIA — a modernized version that places more emphasis on AI integration, automation, and next-gen digital innovation.

This shift opens up new opportunities, but it also comes with stricter eligibility, tighter definitions, and a clearer focus on forward-looking R&D.

Here’s what you need to know.

What is CDAEIA, and how is it different?

CDAEIA (Crédit d’impôt pour le développement des affaires électroniques – Innovation et Automatisation) is the updated successor to Québec’s long-standing CDAE program.

The original CDAE was designed to support companies that develop and commercialize software solutions in Québec. It rewarded digital innovation through refundable payroll tax credits , and it’s helped hundreds of businesses offset the cost of hiring and scaling technical teams.

CDAEIA builds on that model but shifts the focus more directly toward:

  • Artificial intelligence
  • Automation and intelligent workflows
  • Advanced software engineering
  • Deep tech innovation in real-world applications

It’s a sign of where Québec is placing its economic bets: tech, AI, and tools that can scale globally.

So what’s changing and when?

The transition from CDAE to CDAEIA will begin January 1, 2026. Here are some of the key differences:

 

Aspect CDAE (Current) CDAEIA (New – 2026)
Eligibility Broadly defined software development Must align with automation or AI-driven innovation
Employee roles Includes tech and non-tech roles More focused on developers, data teams, and AI-adjacent functions
Refundability 24% refundable + 6% non-refundable Reduced refundable rate (23% refundable, 7% non-refundable, more selective
Focus Digital business enablement AI, intelligent systems, and innovative tech
Stacking Compatible with SR&ED Still stackable with SR&ED and potentially CRIC

Why does this matter for your company?

If you’re already claiming SR&ED, there’s a strong chance you could be stacking it with CDAEIA to unlock more non-dilutive funding.

If you’ve never claimed CDAE, now is the time to check — especially if:

  • You have 6 or more engineers on your technical team
  • You’re working on AI, machine learning, or custom software
  • You’re investing in digital tools, platforms, or automation workflows

The window to claim under the current CDAE rules (for 2025) is still open — and can mean a higher refund while you prep for the new structure.

What should you do now?

You don’t have to navigate this alone.

At Boast, we work with Québec-based software and tech teams to help them:

  • Understand which credits apply to them
  • Claim with speed and accuracy (no spreadsheets required)
  • Stay audit-ready and compliant as rules shift
  • Plan proactively for CDAEIA and beyond

We’ve built an automated platform that connects with your payroll, dev tools, and workflow data — so you can file confidently without adding extra strain to your team.

Looking Ahead

CDAEIA isn’t a loss; it’s an evolution.

For companies innovating in AI, intelligent systems, or automation, this credit is designed to support exactly the kind of work you’re already doing.

2025 is the last full year under the current CDAE structure. Let’s make sure you maximize that opportunity while planning ahead for what’s next.

FAQ

Not exactly. CDAE is being phased out and replaced by CDAEIA starting in 2026. While the structure is evolving, the government is maintaining support for software and digital innovation — especially in AI and automation.

Yes. You can still submit CDAE claims under the current rules for your 2025 fiscal year. This may offer higher refund rates and broader eligibility than CDAEIA, so it’s worth acting quickly.

CDAE was broader in scope — it covered a wide range of software development roles. CDAEIA focuses more on AI integration, automation, and advanced technologies. The eligible activities and employee classifications will be narrower and more aligned with innovation-centric work.

You can stack CDAEIA with SR&ED, just like you could with CDAE. The two programs reward different parts of the innovation process, so when used together, they can significantly increase your funding without adding extra equity pressure.

That’s where Boast comes in. We’ll review your project structure, employee classifications, and past claims — and help you understand exactly what you’re eligible for, now and as the rules evolve.

If you want to claim for 2025 under CDAE, the time to start is now. Waiting too long could mean missing out on a more generous claim before CDAEIA takes over in 2026.

Book a CDAEIA Review with Boast

We’ll review your current eligibility, show you how CDAEIA could apply, and map out a filing strategy that helps you get the most from both programs.