Quebec offers some of the most targeted funding in Canada for artificial intelligence (AI) and applied innovation. For industry-led projects, the main challenge is not the idea. It is knowing which expenses are actually eligible and which ones will be rejected. This matters because Quebec AI grants often reimburse only a portion of approved costs. Sometimes, the coverage is as low as 35%.
This guide explains Quebec innovation and AI industry grants, focusing on eligible expenses under PARTENAR‑IA and similar collaborative R&D programs.
Most Quebec AI industry funding programs support collaborative R&D projects between businesses and research centres. Eligible expenses are clearly defined and checked during audits.
The PARTENAR‑IA — CRITM — Industry program funds AI projects in the metal transformation sector. It provides non-refundable funding of up to $1.5 million and can cover up to 35% of eligible project costs.
To qualify, your business must partner with an eligible Quebec research centre or academic institution.
Most Quebec AI grants, including PARTENAR‑IA, accept expenses in these categories:
General admin staff, executives, or sales teams are not eligible.
These costs must be directly related to the approved project.
Routine IT upgrades or off-the-shelf software are usually not allowed unless they are essential for the R&D.
You must justify equipment expenses in your project budget.
Subcontracting must follow Quebec public funding rules and fair-market rates.
Across Quebec innovation and AI industry grants, these costs are often rejected:
Knowing these exclusions early can help you avoid wasted effort.
While PARTENAR‑IA is sector-specific, other Quebec innovation programs follow similar expense rules:
INNOV‑R — PRIMA
Covers up to 50% of eligible costs, with funding up to $500,000 per year for three years. Focuses on collaborative R&D with environmental outcomes.
Federal–Provincial AI Co‑Investment Programs
Some AI programs, such as collaborative AI initiatives supported by industry consortia, also fund salaries, research contracts, and technical development. They rarely fund commercialization.
Rules can vary, but the main expense categories are similar.
If you want to compare Quebec programs by eligible expenses, GrantHub’s eligibility matcher can help you filter programs by province, industry, and expense type.
Including commercialization costs too early
Quebec AI grants focus on R&D. Go-to-market expenses usually belong in later-stage programs.
Overestimating internal staff eligibility
Only time spent directly on the approved project counts. Poor time tracking is a common audit issue.
Buying equipment before approval
Expenses incurred before official project authorization are almost always ineligible.
Weak justification for subcontractors
External expertise must be essential and not easily available internally.
Q: Can AI software licences be claimed as eligible expenses?
Yes, if the software is essential to the R&D and used specifically for the approved project. General business software is not eligible.
Q: Are founders’ salaries eligible under Quebec AI grants?
Sometimes. Founder salaries may be eligible only if the founder performs technical R&D work and is paid at a reasonable market rate.
Q: Can PARTENAR‑IA funding be stacked with other grants?
Stacking may be allowed, but total government assistance caps apply. You must disclose all funding sources.
Q: Do eligible expenses need to be incurred in Quebec?
Yes. Most Quebec innovation programs require that the majority of project activities and expenses occur in Quebec.
Q: Are AI pilot projects eligible, or only early research?
Pilot-scale validation is often eligible if it remains pre-commercial and research-focused.
Quebec innovation and AI industry grants can cover a significant part of your R&D costs, but only if you plan your expenses carefully. To see which Quebec AI and innovation programs match your business, you can use GrantHub to compare active grants across Canada before you prepare your application.
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