Introduction
Quebec’s upcoming CDAE-IA tax credit represents a fundamental shift in how the province supports technology innovation. Understanding which industries stand to gain the most helps CFOs and CTOs plan their 2026 funding strategy.
Starting with fiscal years beginning after December 31, 2025, Quebec’s longstanding Development of E-Business Tax Credit (CDAE) evolves into CDAE-IA, aka the E-Business Tax Credit Integrating Artificial Intelligence. This isn’t simply a name change: The updated program reflects Quebec’s strategic pivot toward AI-driven innovation while maintaining support for the province’s thriving tech ecosystem.
For business leaders evaluating their 2026 budget priorities, the question isn’t just “Will we qualify?” but rather “How can we position our organization to maximize this opportunity?” The answer depends significantly on your industry, your technical capabilities, and how AI integration fits within your broader innovation strategy.
Who Benefits Most: The Natural Winners
Software-as-a-Service (SaaS) Providers
SaaS companies developing cloud-based platforms naturally align with CDAE-IA requirements. If your team is building customer-facing software that processes data, automates workflows, or delivers intelligent recommendations, you’re likely already incorporating qualifying AI functionality.
Why SaaS companies thrive under CDAE-IA: Most modern SaaS architectures already include machine learning components for personalization, predictive analytics, or intelligent automation. The transition from traditional e-business development to AI-enhanced platforms represents an evolution rather than a wholesale transformation.
Companies offering CRM systems with AI-powered lead scoring, ERP platforms with predictive inventory management, or customer portals featuring intelligent chatbots can demonstrate significant AI integration without fundamentally restructuring their technology stack.
FinTech and Financial Services Technology
Financial technology firms leveraging AI for fraud detection, risk assessment, algorithmic trading, or personalized financial recommendations represent ideal CDAE-IA candidates. These organizations already operate at the intersection of data processing, intelligent decision-making, and automated systems—core pillars of the updated eligibility criteria.
The removal of the previous $83,333 salary cap particularly benefits FinTech companies, which often employ highly compensated AI specialists, data scientists, and machine learning engineers. With eligible salaries now calculated above an exclusion threshold rather than capped entirely, organizations can claim credits on senior technical talent driving their AI initiatives.
E-Commerce and Digital Retail Platforms
Online retailers and marketplace operators integrating AI for personalization engines, dynamic pricing, recommendation systems, or intelligent search functionality benefit directly from CDAE-IA’s expanded scope. The program now explicitly includes data processing and hosting activities (NAICS 51821), which strengthens eligibility for companies managing large-scale digital commerce infrastructure.
Whether you’re operating a direct-to-consumer platform or building infrastructure for other retailers, demonstrating how AI substantially improves customer experience, operational efficiency, or business outcomes positions you for maximum credit value.
Cybersecurity and IT Infrastructure Providers
Companies developing cybersecurity solutions, cloud infrastructure, or IT management platforms increasingly rely on AI for threat detection, anomaly monitoring, automated response systems, and predictive security analytics. These capabilities represent exactly the type of “significant AI integration” the CDAE-IA targets.
Organizations building security information and event management (SIEM) platforms, automated penetration testing tools, or AI-powered identity and access management systems can demonstrate how their solutions use neural networks, machine learning algorithms, and intelligent automation to deliver measurable security improvements.
Data Analytics and Business Intelligence Firms
Companies specializing in data analytics, business intelligence, or decision support systems occupy the sweet spot of CDAE-IA eligibility. These organizations inherently work with the core technologies the program prioritizes: machine learning, predictive analytics, data processing, and intelligent decision-making.
From customer analytics platforms to supply chain optimization tools, companies that help other businesses extract intelligence from data through AI-powered systems exemplify the high-value-added activities Quebec aims to support.
Understanding “Significant AI Integration”
The defining feature of CDAE-IA eligibility isn’t simply whether your company uses AI—it’s whether AI plays a substantial role in your value proposition. The program documentation emphasizes that qualifying activities must incorporate AI in a “significant manner,” meaning the technology should deliver notable and measurable improvements to your products or services.
WHAT QUALIFIES AS SIGNIFICANT AI INTEGRATION:
WHAT DOESN’T QUALIFY:
The Revenue Test: Meeting Dual Thresholds
Regardless of your sector, CDAE-IA eligibility requires meeting specific revenue composition tests:
of gross revenue must derive from IT sector activities
of gross revenue must come from core development activities under specific NAICS codes (513211, 513212, 51821, 541514, and 541515)
of gross revenue must involve services to third parties or applications used outside Quebec
These thresholds ensure the program supports companies genuinely focused on technology development rather than those with peripheral IT operations. For diversified businesses, this may require strategic evaluation of which revenue streams qualify and how to structure operations for optimal eligibility.
Beyond Traditional Tech: Emerging Opportunities
HealthTech and Medical Technology
Healthcare technology companies developing diagnostic tools, treatment optimization platforms, patient management systems, or medical imaging analysis using AI capabilities increasingly qualify under CDAE-IA. The key is demonstrating how AI enhances clinical decision-making, operational efficiency, or patient outcomes through measurable technological advancement.
Supply Chain and Logistics Technology
Companies building AI-powered route optimization, demand forecasting, inventory management, or warehouse automation systems represent strong CDAE-IA candidates. These platforms combine data processing, intelligent decision-making, and automated optimization—exactly what the program targets.
Professional Services Software
Organizations developing AI-enhanced tools for legal research, accounting automation, HR analytics, or project management can qualify when their solutions incorporate substantial machine learning, natural language processing, or predictive analytics capabilities that drive core functionality.
Positioning Your Organization for Success
For Companies Already AI-Focused
If your organization already centers on AI development, your path forward involves rigorous documentation. Investissement Quebec will scrutinize how AI functions within your systems, the technical approaches you employ, and the measurable improvements your solutions deliver.
ACTION STEPS
For Companies Adding AI Capabilities
Organizations currently qualifying under CDAE who need to enhance AI integration face a strategic opportunity. Rather than viewing this as a compliance burden, consider how AI can genuinely improve your products while securing continued funding access.
STRATEGIC CONSIDERATIONS
The Financial Impact: Understanding Your Opportunity
While the overall credit rate remains 30% of eligible salaries, the structure shifts over time:
2025: 23% refundable + 7% non-refundable
2026: 22% refundable + 8% non-refundable
2027: 21% refundable + 9% non-refundable
2028+: 20% refundable + 10% non-refundable
The removal of the previous $83,333 salary cap means companies employing senior AI specialists can claim credits on higher compensation levels. However, the new exclusion threshold (approximately $18,571 for 2025, indexed annually) means the first portion of each employee’s salary won’t qualify.
For a typical AI-focused tech company with six eligible employees earning $100,000 annually:
Companies with larger technical teams or higher-paid AI specialists can realize significantly greater benefits, making CDAE-IA a substantial funding source for innovation-focused organizations.
Coordinating with Other Programs
Smart organizations don’t view CDAE-IA in isolation. The program complements federal SR&ED tax credits , Quebec’s new CRIC (Research, Innovation and Commercialization; aka Quebec’s provincial SR&ED initiative), and various sector-specific incentives.
STRATEGIC STACKING CONSIDERATIONS
The most sophisticated approach involves integrated planning: mapping your innovation activities to all applicable programs, tracking time and expenses accordingly, and maintaining documentation that satisfies multiple claim requirements simultaneously.
What This Means for Your 2026 Planning
Whether your organization naturally aligns with CDAE-IA or needs strategic adjustments to qualify, the time to act is now. The transition creates both opportunities and challenges:
IMMEDIATE PRIORITIES
STRATEGIC PLANNING
The Boast Advantage
Navigating CDAE-IA’s requirements demands both technical understanding and strategic planning. Boast combines AI-powered automation with specialized Quebec tax credit expertise to help you maximize returns while maintaining complete compliance.
Our platform streamlines the entire process: from automated employee tracking and qualification to documentation management and Investissement Quebec attestation coordination. More importantly, our team helps you develop an AI integration strategy that supports both program eligibility and business objectives.
Whether you’re currently claiming CDAE or exploring CDAE-IA for the first time, Boast ensures you capture every eligible dollar while positioning your organization for long-term innovation success.
