You’ve decided to transform your business digitally. It’s an excellent decision. But you’re wondering: how do you finance this project without straining your SME’s finances?

The good news is that Quebec offers several funding programs specifically designed to help small and medium-sized enterprises modernize their digital operations. These programs can cover between 30% and 50% of your costs, making an ambitious digital transformation much more accessible.

CDAEIA Tax Credit for AI Solutions

The Defense, Aerospace and Environment Tax Credit (CDAE), with a focus on Artificial Intelligence and e-business, is a federal program that offers a 30% tax credit on eligible expenses related to the development and implementation of artificial intelligence solutions.

CDAEIA covers employee salaries working on AI projects, external consulting and expertise fees, AI-related software licenses and subscriptions, as well as training and expertise development costs.

You incur eligible expenses for your AI transformation, then claim the tax credit on your tax return. The credit can be carried forward over several years if you cannot use it fully in a single year.

ESSOR Tier 1B and 1C: Direct Quebec Subsidies

ESSOR is a Quebec government program that offers direct subsidies (not tax credits) for your digital transformation.

Tier 1B specifically finances digital diagnostics and strategic plans. You can receive up to 50% in subsidies for a complete audit of your current digital infrastructure, an assessment of your digital processes, a personalized strategic plan for your transformation, and expert recommendations. This is exactly the type of AI marketing audit we offer, and an ESSOR 1B diagnostic can cover up to half the costs.

Once you have your strategic plan in place, Tier 1C finances implementation. Subsidies cover up to 50% of the costs of installing and configuring digital tools, system integration, team training, and implementation consulting. Combined, Tiers 1B and 1C can finance up to 50% of a complete digital transformation.

Scale AI, JACOBB and CRIM: Support and Optimization

Scale AI is a federal program that offers support and consulting for artificial intelligence adoption in your business. Unlike other programs, Scale AI primarily offers consulting support rather than direct funding. However, by working with accredited Scale AI partners, you benefit from recognized expertise and access to a network of resources to optimize your AI implementation.

JACOBB and CRIM also offer support for innovation and technological transformation. These programs can help you with subsidies or consulting services, depending on your specific needs.

How to Combine These Programs for Optimal Funding

The real power lies in combining these programs. Here’s an example: You request an ESSOR 1B subsidy for a complete AI marketing audit that covers 50% of the audit. You claim the CDAEIA tax credit on remaining consulting fees to cover an additional portion. Once the audit is completed and the plan is in place, you request an ESSOR 1C subsidy for implementation, again covering 50% of those costs. You work with a Scale AI partner for continuous optimization.

Result? A complete digital transformation with significantly reduced financial burden.

Who is Eligible?

Most of these programs are aimed at SMEs and growing businesses. The criteria vary slightly by program, but generally you must be a business established in Quebec (or Canada for federal programs), in operation for at least 2 years, and your revenues must be below certain thresholds that vary by program.

How to Get Started?

The first step is to understand exactly where you are and where you’re going. A complete AI marketing audit identifies your transformation opportunities and estimates implementation costs. Once the audit is completed, you have the documentation needed to apply for an ESSOR 1B subsidy (if you haven’t already done the audit) or ESSOR 1C (for implementation). Track your eligible expenses and claim the CDAEIA tax credit on your annual tax return.

Navigating these programs can be complex. That’s why working with an agency like Canibuy, which understands all these programs and how to combine them optimally, can save you time and money.

Take advantage of subsidies for your AI project today. Our team will help you identify which programs you’re eligible for and structure your digital transformation project to maximize funding.