As part of its 2026–27 budget, the Quebec government has opted for adjustments and extensions to existing measures rather than introducing new tax measures, in order to continue the transformation of certain sectors.
Tax credit for the development of e-business
Introduced in 2015, le crédit d’impôt pour le développement des affaires électroniques (CDAE), an e-business tax credit includes both a refundable and non-refundable component.
Last year, eligible activities under the CDAE were revised to target higher value-added projects, particularly those significantly integrating AI functionalities. It has been renamed le crédit d’impôt pour le développement des affaires électroniques intégrant des fonctionnalités d’intelligence artificielle (CDAEIA).
In general terms, the CDAEIA is calculated on the portion of salary paid by an eligible corporation to an eligible employee that exceeds the applicable exclusion threshold. These rates are reduced by half when 50% or more of an eligible corporation’s gross revenue is derived from certain intercompany outsourcing activities.
Following last year’s budget, further adjustments have been made to provide greater predictability for corporations eligible for the CDAEIA, while ensuring more rigorous implementation. These include:
- easing certain criteria related to eligible activities for employee certification, clarifying that certain preparatory work may qualify;
- easing conditions related to the carry-forward of unused non-refundable tax credits;
- clarifying how rate reductions apply to corporations that use intercompany outsourcing.
Tax credit for print media
This refundable tax credit supports the activities of print media organizations, particularly in business and economic reporting, culture, international and municipal news, general news, local information and politics.
It is currently calculated at 35% of eligible salaries paid by an eligible corporation to its eligible employees, up to an annual cap of $75,000 per employee.
The budget introduces several changes, including:
- expanding eligibility criteria to include news agencies and media organizations that broadcast news bulletins on radio or television;
- increasing the annual cap on eligible salary to $85,000;
- removing IT activities from those eligible for employee certification.
These changes apply to taxation years, or fiscal periods as applicable, ending after budget day.
Tax credit for the digital transformation of print media
This refundable 35% tax credit supports digital conversion projects by print media companies, including the development of information systems and the integration of technological infrastructure. The maximum assistance is set at $7 million.
Originally in effect from March 28, 2018 to Dec. 31, 2025, the measure will be extended by three years to allow companies to complete projects and improve predictability.
The eligibility period will therefore be extended to Dec. 31, 2028, provided eligible assets are acquired before Jan. 1, 2028.
The credit rate will also be gradually reduced: to 20% for eligible expenses incurred after Dec. 31, 2026 and before Jan. 1, 2028, and to 10% for expenses incurred after Dec. 31, 2027 and before Jan. 1, 2029.
Tax credit for Quebec film and television production
The refundable tax credit for Quebec film and television production is calculated based on labour expenditures incurred by a corporation for an eligible production.
The base rate is generally 32%, but may reach 40% for the following productions:
- French-language fiction films (short, medium and feature-length);
- French-language animated fiction films (short, medium and feature-length);
- French-language documentary productions;
- French-language youth programming;
- large-format films.
Additional bonuses may apply, including those related to public financial assistance, special effects and computer animation and regional production.
To better reflect current industry realities, changes will be made to:
- include funding from the Indigenous Screen Office in the list of assistance amounts excluded for purposes of the tax credit;
- modify eligibility criteria related to the duration and number of episodes for certain categories of eligible productions.
Related changes will also be made to the tax credit for film dubbing and the tax credit for film production services with respect to eligible production categories.