Quebec has quietly made the biggest provincial R&D change in the country. The Tax Credit for Research, Innovation and Commercialization (CRIC) consolidated eight prior measures — including Quebec's long-standing provincial SR&ED-style credits — into a single, higher-rate refundable credit.
The headline: 30% on qualified expenditures above an exclusion threshold, up to $1 million of expenditures, and 20% above $1 million. That base rate is materially higher than the 14% many Quebec claimants were used to. Crucially, CRIC also covers pre-commercialization activity — not just pure R&D.
If you do R&D in Quebec, this changes your numbers. Here is what qualifies and how it stacks with the federal SR&ED credit.
What CRIC covers
CRIC applies to R&D activities and pre-commercialization activities — such as regulatory testing and product design — carried out in Quebec. Eligible costs include:
- Employee salaries and wages for eligible work performed in Quebec
- 50% of eligible subcontractor payments
- 50% of payments to eligible research institutions
- Costs of acquiring eligible property used in the work
Extending coverage to pre-commercialization is the part most people miss: activities that historically fell outside pure SR&ED — regulatory testing, design work to get a product to market — can now attract the credit.
The exclusion threshold
CRIC applies to expenditures above an exclusion threshold, calculated as the greater of $50,000 or the sum of the basic personal amount for each eligible employee. In practice, the first slice of your spend is carved out, and the 30% / 20% rates apply to what is above it. Getting the threshold calculation right is where a lot of the value is won or lost.
How it stacks with federal SR&ED
CRIC is a provincial credit; the federal SR&ED ITC is separate and still applies to eligible work. The two are designed to work together, but Quebec assistance reduces your federal SR&ED-eligible expenditures dollar-for-dollar, so the combined recovery has to be modelled — you cannot simply add the rates.
Important: CRIC generally cannot be combined with other Quebec credits (such as the C3i investment credit) on the same expense. Allocating each expenditure to the credit that recovers the most — without double-claiming — is the core planning exercise.
What to do now
If you claim in Quebec, revisit your R&D costing for taxation years beginning after March 25, 2025 under the CRIC rules rather than the legacy measures. The higher base rate and the pre-commercialization coverage mean some projects that were marginal under the old regime are now clearly worth claiming — and some cost categories you previously excluded may now qualify.
Frequently asked questions
What is the CRIC tax credit?
CRIC is Quebec's Tax Credit for Research, Innovation and Commercialization — a single refundable credit that replaced eight prior Quebec measures, including the province's SR&ED-style credits. It pays 30% on qualified R&D and pre-commercialization expenditures up to $1M, and 20% above that.
Does CRIC replace Quebec's provincial SR&ED credit?
Yes. CRIC consolidated the earlier Quebec R&D credits into one measure with a higher base rate. Federal SR&ED is unaffected and still applies to eligible work.
Can I claim CRIC and federal SR&ED together?
Yes, they are separate programs, but Quebec assistance reduces your federal SR&ED-eligible expenditures, so the combined benefit has to be calculated rather than simply added. CRIC also cannot be combined with certain other Quebec credits on the same expense.
When does CRIC apply from?
It applies to taxation years beginning after March 25, 2025. Verify the current rules on the Quebec government page before filing.
Claiming R&D in Quebec?
We model CRIC against the federal SR&ED ITC and Quebec's other credits to allocate every expenditure to the highest-recovery treatment — without double-claiming.
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