Use our quick-reference guide to understand the ins and outs of Revenu Quebec’s Tax Credit for the Development of E-Business (aka CDAE) and strategies to maximize access to this powerful provincial funding program.
Company Eligibility Checklist
Employee Eligibility Requirements
Must Meet ALL Criteria:
Work Location
Reports to Quebec establishment
Time Commitment
Minimum 26 hours/week on eligible IT activities
Role Type
Technical or directly related management positions
Ownership Restriction
Cannot own 10%+ of company shares
Certification
Individual employee certification from Investissement Québec required
Eligible Roles Examples:
- Software developers and engineers
- Systems analysts and architects
- QA specialists and testers
- Technical project managers
- Database administrators
Eligible vs. Non-Eligible Activities
| COUNTS FOR CDAE | DOES NOT COUNT |
|---|---|
| Software design, coding, testing, implementation | Administrative work, sales, customer service |
| System integration and maintenance | Hardware manufacturing or assembly/td> |
| Database design and real-time data processing | Basic website content updates (non-programming) |
| Technical support for proprietary software products | General research unrelated to software products |
| E-commerce platform development | Marketing or promotional activities |
Credit Calculation Examples
EXAMPLE 1
Developer earning $75,000
Eligible salary: $75,000
Credit: $75,000 × 30% = $22,500 cash refund
EXAMPLE 2
Senior developer earning $100,000
Salary capped at: $83,333
Credit: $83,333 × 30% = $25,000 cash refund
TEAM IMPACT
Company with 8 eligible employees can receive up to $200,000 annually
Application Process
Step 1: Pre-Qualification Assessment (Before fiscal year-end)
- Verify 75% IT activity threshold
- Confirm 6+ eligible employee requirement
- Review employee role eligibility
Step 2: Obtain Certifications (Within 15 months of fiscal year-end)
- Company certification from Investissement Québec
- Individual employee certifications for each eligible worker
- Submit supporting documentation on activities and roles within 15 months of completion
- Pay fee based on amount of employee claimed
Step 3: File Tax Credit Claim (With corporate tax return)
- Complete Form CO-1029.8.36.DA for each eligible employee
- Include all Investissement Québec certifications
- File with Québec corporate tax return (CO-17)
Step 4: Receive Refund (Typically 3-6 months)
- Revenu Québec reviews and processes claim
- Cash refund issued directly to company
Critical Deadlines
Certification Deadline
15 months
after fiscal year-end
Tax Filing Deadline
The last day of 18 month after fiscal year or 3 month after the reception of the certificates
Documentation Deadline
Must be received by latest of 12 months after CO-17 deadline OR 3 months after certificate issuance
Documentation Requirements
Essential Records to Maintain:
AUDIT PREPARATION
Strategic Considerations
Program Stacking Opportunities:
- Can be combined with federal SR&ED (with proper coordination)
- Eligible activities may qualify for both programs
Key Restrictions:
- Cannot double-claim same expenses under multiple Quebec programs
- Government assistance reduces eligible expenditures
- Work for government entities has special calculation rules
Optimization Tips:
- Plan employee roles to meet 26-hour minimum consistently
- Structure projects to maintain 75% IT activity threshold
- Time salary increases to maximize annual $25,000 caps
- Coordinate with federal SR&ED for maximum benefit
Quick Qualification Assessment
Answer these questions to determine likely eligibility:
If you answered “Yes” to all four questions, you likely qualify for CDAE.
2025 Program Status
This data sheet covers the current CDAE program. For information about the upcoming CDAEIA transition and strategic planning across multiple government funding programs, consult with Boast’s R&D tax credit specialists.
