Breaking: Quebec has completely transformed its approach to supporting innovation. As of March 25, 2025, the province has swept away its complicated patchwork of eight separate R&D tax credits and replaced them with a single, powerful program that not only matches but in many ways surpasses the federal SR&ED program. 

For innovative businesses headquartered in Quebec, this isn’t just another policy change: it’s a unique opportunity to dramatically increase your access to non-dilutive capital while simplifying the entire funding process. The new Tax Credit for Research, Innovation and Commercialization (CRIC) is Quebec’s answer to SR&ED—more generous, more accessible, and built for today’s innovation economy. 

If you want to stretch your R&D dollars further in 2025, Quebec is now the most attractive place in North America for innovation funding. 

The Great Quebec R&D Transformation: From Fragmentation to Power

The Old Reality: A Bureaucratic Maze

For years, Quebec companies had to navigate a confusing maze of separate provincial R&D programs. The province’s SR&ED system was a patchwork of credits—effective, but complicated, with different rates, eligibility rules, and application processes. Many businesses missed out on funding simply because the system was too complex. 

The New Reality: Quebec’s Provincial SR&ED, Supercharged 

CRIC changes the game. Quebec is consolidating its various R&D tax credits and removing those that were less effective or too burdensome, creating a new Research, Innovation and Commercialization Tax Credit (CRIC) that’s essentially the province’s answer to the federal SR&ED program—with major improvements. 

Here’s how to look at it: If the federal SR&ED program is the foundation of innovation funding in Canada, CRIC is now Quebec’s provincial powerhouse that you can stack on top for unprecedented support. 

Eight Programs Become One Juggernaut

CRIC consolidates and replaces these former Quebec programs:

  • Tax credit for salaries and wages (R&D)
  • Tax credit for university research or research carried out by public research centres
  • Tax credit for private partnership pre-competitive research
  • Tax credit for fees and dues paid to research consortiums
  • Tax credit for technological adaptation services
  • Tax credit for industrial design
  • Tax holiday for foreign researchers
  • Tax holiday for foreign experts

The result? A single program that’s easier to access and far more generous than the old system. 

CRIC vs. Federal SR&ED: Quebec’s Provincial Program Takes the Lead 

Understanding how CRIC compares to federal SR&ED reveals why Quebec businesses now have a significant advantage:

Federal SR&ED: The National Baseline

  • Rates: 35% (CCPCs, first $4.5M), 15% (others)
  • Focus: Experimental development and technological uncertainty resolution
  • Coverage: Traditional R&D activities, recently restored capital expenditures
  • Administration: Canada Revenue Agency (CRA)

CRIC: Quebec’s Enhanced Provincial Solution 

  • Rates: 30% refundable tax credit on the first $1 million of eligible expenses exceeding the exclusion threshold and then a 20% refundable tax credit on eligible expenses over $1 million
  • Focus: R&D plus pre-commercialization activities
  • Coverage: Expenditures related to various pre-commercialization activities, such as testing, technological validation, and studies conducted to meet regulatory or certification requirements
  • Administration: Revenu Québec

The Stacking Advantage: Quebec companies can now claim both federal SR&ED and provincial CRIC for the same eligible activities, creating combined effective rates that can exceed 50% for qualifying expenditures.

Revolutionary Changes: What Makes CRIC Different

  1. Universal Access Regardless of Company Size

The new rates apply to all corporations, irrespective of their ownership or assets, making it easier for businesses to budget cashflows and access the tax credit. Unlike the previous Quebec system where rates varied from 14% to 30% based on company characteristics, CRIC offers the same enhanced rates to startups and multinational corporations alike.

  1. Pre-Commercialization Coverage: Bridging the Valley of Death

This is where CRIC truly innovates. Traditionally, SR&ED tax credits in Quebec only covered costs up to the point where a technological uncertainty was resolved—usually the end of core R&D. Now, you’ll be able to claim expenses for a range of pre-commercialization activities, including: 

  • Regulatory testing and certification processes
  • Product design and industrial design activities
  • Technological validation and pilot production
  • Market studies required for commercialization
  • Prototype refinement and testing

This directly addresses the critical funding gap between finishing R&D and launching your product—the so-called “valley of death” that stops many promising innovations from reaching the market. 

  1. Capital Expenditure Revolution

For the first time in many years, capital expenditures used in R&D, such as depreciable equipment used in labs and software development, are now eligible for tax credits. This represents a massive advantage over federal SR&ED, which has historically excluded most capital expenditures.

Quebec companies can now claim CRIC credits on:

  • R&D laboratory equipment
  • Software development infrastructure
  • Specialized manufacturing equipment for prototyping
  • Testing and validation equipment
  1. Simplified Rate Structure with Powerful Incentives

The new two-tier system eliminates confusion while maximizing benefits:

  • Tier 1: 30% on first $1M (enhanced rate for substantial initial investment)
  • Tier 2: 20% on excess (still higher than most previous Quebec rates)
  1. Fully Refundable: Cash Flow Revolution for Startups

Unlike many tax credits that require companies to have tax liability, CRIC is fully refundable. This means even pre-revenue startups receive cash refunds, transforming how early-stage companies access non-dilutive capital.

Strategic Program Integration: Maximizing Your Non-Dilutive Capital Stack

The Triple Threat: CRIC + SR&ED + CDAEIA

For Quebec-based innovative companies, 2025 creates an unprecedented opportunity to stack funding programs:

Optimal Program Combination Strategy:

Federal SR&ED (35% CCPCs/15% others)

  • Claim experimental development and technological uncertainty resolution
  • Focus on breakthrough research and systematic investigation
  • Leverage enhanced $4.5M expenditure limit and restored capital expenditures

Provincial CRIC (30%/20%)

  • Claim the same R&D activities under Quebec’s harmonized definition 
  • Add pre-commercialization activities not covered by SR&ED
  • Include capital expenditures for Quebec R&D equipment

CDAEIA for AI Companies (30% total)

  • AI integration and implementation activities
  • Ongoing AI development and enhancement
  • Quebec-specific AI business solutions

Real-World Impact Example: A Quebec AI company with $2M in eligible R&D expenditures could potentially access:

  • Federal SR&ED: $700,000 (35% × $2M)
  • Provincial CRIC: $500,000 (30% × $1M + 20% × $1M)
  • CDAEIA: Additional credits for AI-specific activities
  • Total potential support: $1.2M+ on $2M investment

Evolution Timeline: Quebec’s Strategic Innovation Roadmap 

2008-2024: The Fragmented Era

  • Multiple separate Quebec R&D programs
  • Asset-based restrictions limiting access
  • Administrative complexity deterring participation
  • Rates varying from 14-30% based on company characteristics

March 25, 2025: The CRIC Revolution

  • For taxation years beginning after March 25, 2025, Quebec will consolidate various previously existing R&D tax credits
  • Universal 30%/20% rate structure regardless of company size
  • Pre-commercialization activities now eligible
  • Capital expenditures included for first time in years

2026 and Beyond: The New Quebec Advantage

  • Simplified single-program administration
  • Enhanced collaboration with federal SR&ED
  • Position Quebec as the leader in innovation funding across North America

Lifecycle Strategy: Maximizing CRIC Across Growth Stages

Pre-Revenue Startups: The Fully Refundable Advantage

CRIC’s fully refundable structure is a game-changer for early-stage companies: 

  • Cash flow boost: Receive refunds even with zero tax liability
  • Pre-commercialization support: Fund product design, regulatory testing, and market validation
  • Equipment investments: Purchase R&D equipment with 30% cost recovery
  • University partnerships: Leverage 50% cost recovery on Quebec research collaborations

Growth-Stage Companies ($1M-$10M): The Sweet Spot

The $1M threshold at 30% creates powerful incentives for growing companies:

  • Strategic project clustering: Structure R&D activities to maximize 30% rate utilization
  • Commercialization bridge: Use pre-commercialization coverage to bridge R&D to market
  • Infrastructure investment: Build Quebec R&D capabilities with capital expenditure support
  • Talent retention: Enhanced salary coverage makes Quebec R&D teams more cost-effective

Mature Companies ($10M+): The Universal Access Advantage

Unlike previous Quebec programs, CRIC offers full benefits regardless of company size:

  • No asset restrictions: Large companies access same rates as startups
  • Dual program strategy: Coordinate CRIC with federal SR&ED for maximum benefit
  • Collaborative research: Enhanced support for university and research center partnerships
  • Global competitiveness: Quebec operations become more attractive for multinational R&D

Implementation Roadmap: Capturing Maximum Value in 2025

Q1 2025: Preparation Phase

  • Audit current R&D activities: Identify CRIC-eligible expenditures using new criteria
  • Documentation systems: Prepare for new exclusion threshold calculations and pre-commercialization tracking
  • Strategic planning: Structure 2025-2026 projects to optimize CRIC benefits
  • Partnership development: Establish relationships with Quebec universities and research centers

Q2-Q3 2025: Transition Execution

  • Project restructuring: Align your R&D activities with CRIC’s expanded eligibility criteria 
  • Equipment planning: Time capital expenditures for optimal CRIC utilization
  • Staff allocation: Document employee time allocation for new threshold calculations
  • Process integration: Coordinate CRIC with federal SR&ED and other programs

Q4 2025 and Beyond: Optimization Phase

  • First CRIC claims: File initial claims for companies with March 2026+ fiscal year-ends
  • Results analysis: Assess CRIC impact compared to previous Quebec programs
  • Strategy refinement: Optimize future R&D planning based on CRIC experience
  • Competitive advantage: Take advantage of Quebec’s enhanced funding environment to accelerate your growth 

The Exclusion Threshold Revolution: Understanding the New Calculation

CRIC introduces a new, more generous exclusion threshold compared with previous programs: 

New Calculation Method: The exclusion threshold is now the greater of $50,000 or the basic personal amount per employee, prorated based on the time each employee spends on R&D activities 

Example Calculation (2025):

  • 10 full-time R&D employees
  • Basic personal amount: $18,751
  • Exclusion threshold: $187,510 (10 × $18,751)
  • Only expenditures above $187,510 qualify for credit

Strategic Advantage: This employee-based system rewards companies with substantial R&D teams and ensures credits target genuine innovation investments rather than minimal activities.

Competitive Landscape: Quebec’s National Innovation Leadership 

North American Context Quebec’s CRIC program now offers some of the most generous R&D incentives anywhere in North America: 

  • Combined rates: 50%+ effective rates when stacked with federal programs
  • Comprehensive coverage: R&D through commercialization in single program
  • Universal access: No restrictions based on company size or ownership
  • Immediate cash flow: Fully refundable structure supports all company stages

International Competitiveness CRIC positions Quebec to compete with global innovation hubs:

  • Singapore-level incentives: Comparable effective rates to top international programs
  • Broader coverage: Includes activities not covered by most international programs
  • Simplified access: Single program vs. complex multi-program structures elsewhere
  • Strategic focus: Aligned with Quebec’s strengths in AI and advanced technology 

Looking Ahead: Quebec’s Vision for an Innovation-Driven Economy 

Government Investment Commitment Quebec’s $2.4 billion investment in CRIC over five years shows a long-term commitment to innovation leadership. This is a strategic move to make Quebec the top innovation hub in North America. 

Economic Impact Projections Early projections suggest CRIC could:

  • Increase Quebec R&D investment by 15-20%
  • Attract additional multinational R&D operations
  • Support 10,000+ additional high-skilled innovation jobs
  • Generate significant IP commercialization through IDCI integration

Strategic Ecosystem Development CRIC’s increased support for university partnerships and collaborative research is designed to strengthen Quebec’s innovation ecosystem by: 

  • Strengthening industry-academia connections
  • Encouraging technology transfer and commercialization
  • Supporting development of innovation clusters
  • Attracting international research collaborations

Action Plan: Maximizing Your 2025 CRIC Strategy

Immediate Actions (Next 90 Days):

  1. Comprehensive R&D audit: Review all 2024-2025 activities for CRIC eligibility
  2. Documentation upgrade: Implement systems for tracking pre-commercialization activities and employee time allocation
  3. Partnership assessment: Evaluate potential collaborations with Quebec universities and research centers
  4. Integration planning: Coordinate CRIC strategy with federal SR&ED and other programs

Medium-term Strategy (6-12 Months):

  1. Project restructuring: Align your R&D initiatives with CRIC’s expanded eligibility criteria. 
  2. Infrastructure investment: Plan equipment purchases to leverage capital expenditure eligibility
  3. Team optimization: Consider Quebec-based R&D team expansion given enhanced funding
  4. Commercialization pipeline: Develop systematic approach to pre-commercialization activities

Long-term Positioning (1-3 Years):

  1. Innovation hub development: Establish Quebec as primary R&D center for enhanced funding access
  2. IP commercialization: Integrate CRIC with IDCI for end-to-end innovation-to-market strategy
  3. Competitive advantage: Use Quebec’s funding advantage to speed up your innovation cycles 
  4. Ecosystem participation: Become an active player in Quebec’s enhanced innovation ecosystem 

The Bottom Line: Quebec’s Innovation Funding Revolution 

Quebec’s CRIC program is the most significant change to provincial R&D funding in Canada in decades. By merging eight separate programs into one powerful initiative, Quebec has created a provincial version of SR&ED that’s more generous, more accessible, and better suited to today’s innovation landscape. 

For innovative Quebec businesses, CRIC isn’t just another tax credit—it’s a strategic advantage that can transform how you fund innovation. The combined power of federal SR&ED and provincial CRIC means you could recover over 50% of eligible R&D expenses, including pre-commercialization costs that other regions don’t cover. 

The message is clear: Quebec is betting big on innovation, and companies that understand and leverage CRIC will have a significant competitive advantage in the race to develop and commercialize next-generation technologies.

The window of opportunity is open now. With CRIC applying to tax years starting after March 25, 2025, innovative companies have a short window to plan their strategies and maximize their access to non-dilutive capital. Those who move quickly and strategically will be best positioned to benefit from Quebec’s innovation funding revolution.