How to Maximize the New CDAE IA Tax Credit for IT Projects in Québec

Lionel Deguy
Aug 28
3 min read

Updated: Sep 3

A smarter way to deliver IT projects — with Tato + NYLL

The Government of Québec recently announced the CDAE IA (Tax Credit for the Development of Electronic Business with Integrated AI). This credit modernizes the existing CDAE program and explicitly targets companies that integrate artificial intelligence (AI) into their digital business activities.

For organizations planning IT projects in 2025 and beyond, this represents a unique opportunity to reduce net project costs while modernizing delivery practices.

At NYLL, we don’t provide tax advice — but we help ensure that the conditions required to qualify are built directly into how you run your projects.

Why CDAE IA matters now

The new CDAEIA applies to financial years beginning after December 31, 2025. However, companies can already choose to apply it for fiscal years starting between March 25, 2025 and January 1, 2026.

This means that organizations launching IT projects in late 2025 can already benefit from the program.

The credit is based on eligible salaries of employees involved in projects that integrate AI into electronic business activities.

How Tato + NYLL help create eligibility conditions

Most consulting firms will continue to sell “classic” IT project services, which may not qualify. NYLL takes a different approach:

AI integration by design: With our partner platform Tato, every project includes AI-driven data capture, scope control, risk logs, and automated reporting.
Lean-inspired methodology: Our practices are designed to eliminate waste, standardize execution, and create measurable efficiency gains — while embedding AI into workflows.
Traceability and documentation: Tato provides a real-time project record that demonstrates actual AI usage in project delivery.

In other words: with NYLL, your projects aren’t just more efficient — they are CDAE IA ready.

The financial impact

When combining NYLL’s offerings with Tato’s AI platform, clients can:

Reduce gross project costs by cutting waste and inefficiencies (up to 40% efficiency gains).
Lower net costs further by making projects eligible for the CDAE IA credit (on salaries of employees involved in AI-driven delivery).

In our proposals, we can provide:

Gross project cost
Estimated CDAE IA credit (validated with your tax advisor)
Net project cost

This transparency makes investment decisions faster and easier.

Why timing matters

There is a limited window in 2025 for companies whose fiscal year begins after March 25. Acting now means:

Starting projects that are already aligned with CDAE IA conditions.
Securing an immediate financial advantage compared to “classic” IT delivery.
Gaining first-mover advantage with modern AI-augmented project practices.

Waiting means risking higher costs and losing competitive ground.

Who benefits most

Medium and large enterprises (revenues $15M–$500M): enough payroll to make the credit meaningful.
IT services firms: they can also claim the credit for employees working on AI-driven delivery — and partner with NYLL to co-develop “CDAE IA-ready” offers for their clients.

Next steps

NYLL positions itself as a strategic partner, not a tax advisor. Our role is to:

Design and execute projects that are eligible by nature.
Ensure AI integration is real, traceable, and aligned with CDAE IA’s intent.
Provide documentation and project data that your fiscal experts can use to validate claims.

Interested in making your next project CDAE IA-ready?

Disclaimer: The information provided is for general purposes only and does not constitute tax advice. Final eligibility and credit amounts must be confirmed with a qualified tax advisor.