Parliamentary Session Report – Fall 2025

 Parliamentary Session Report – Fall 2025

Longueuil, Québec — December 12, 2025 — With the Québec National Assembly having adjourned, AQT presents a summary of the key issues of interest to Québec’s technology industry that marked the last parliamentary session..

CDAE-AI: AQT Taking Action to Defend Your Interests Amid a Game-Changing Reform 

The transformation of the Tax Credit for the Development of E-Business (CDAE) into the new CDAE-AI credit has raised significant concerns among technology companies. To ensure its interventions are grounded in solid, evidence-based analysis, AQT commissioned BDO to conduct a detailed study outlining the anticipated impacts of the reform.

Key Takeaways from the BDO Study

AI integration should not be rushed — it must be planned. AQT recommends that the government:

• Acknowledge the progressive nature of AI adoption and adapt the CDAE-AI accordingly;

• Clarify eligibility criteria, particularly with respect to system maintenance and evolution;

• Ensure a gradual transition that reflects the operational realities of the technology sector.

Ongoing Engagement with Government Authorities

These recommendations have been presented to the Ministry of Finance and Investissement Québec. More than 10 meetings have been held since the beginning of the session, and AQT continues its advocacy efforts.

📌 AQT members benefit from exclusive access to the full report, as well as to a webinar scheduled for January, during which representatives from the Ministry of Finance and Investissement Québec will present the objectives of the changes and answer members’ questions.

Digital sovereignty remains a central topic of discussion, particularly with respect to data protection and critical infrastructure.

Digital Sovereignty

• The Québec government is currently working on a digital policy and IT procurement framework.

• The Parti Québécois is proposing legislation to ensure Québec’s digital sovereignty, prioritize Québec-based companies in government digital transformation projects, protect sensitive data, and build cutting-edge public-sector IT expertise in collaboration with recognized educational institutions and key stakeholders in Québec’s cybersecurity and digital sectors.

Cybersecurity Coordination

Québec has signed a cybersecurity collaboration agreement with other governments across Canada.

Bill No. 82: Digital Identity and Modernization of the Government Cloud Catalogue

Adopted in October, Bill No. 82 goes far beyond digital identity. It reshapes data governance and significantly expands access to the government cloud solutions catalogue. AQT submitted a brief and participated in the parliamentary committee hearings on the bill.

Impact: Registration in the catalogue will provide direct access to public-sector projects, reducing the burden of traditional procurement processes.

Public Procurement Consultation

The government has launched a consultation to review its procurement practices and better support innovative SMEs that often face significant administrative barriers.

Impact: Changes to requirements and selection criteria could improve access for Québec technology companies.

At the Federal Level: Strategic Investments and International Partnerships 

Ottawa is focusing on funding and international cooperation to secure access to critical technologies, particularly in artificial intelligence and cybersecurity.

Canada–European Union Partnership

The Digital Partnership Council meeting held on December 8 confirmed closer collaboration with Europe, notably in AI, cybersecurity, and digital identity.

Impact: Harmonized standards would facilitate the commercialization of Canadian technologies in Europe and the development of joint projects.

“Buy Canadian” Policy: $186 Million to Modernize Procurement

The federal government plans to invest $186 million in 2025 to modernize domestic procurement. The goal is to simplify processes, increase competition, and strengthen Canada’s industrial capacity.

Impact: Technology SMEs should benefit from improved access to public markets, particularly in cybersecurity and digital innovation.

Compute Capacity Strategy and AI Consultation

To reduce reliance on foreign infrastructure, Ottawa is launching a fund to support projects requiring high-performance computing and has initiated a consultation on a future federal AI strategy.

Impact: Companies will gain improved — and in some cases subsidized — access to the computing resources required to train AI models in Canada.

Defence: Major Investments and New Opportunities for Technology SMEs

Between September and December 2025, the federal government launched several structural initiatives to modernize the defence sector.

Creation of the Defence Investment Agency

Prime Minister Carney announced the creation of a special operational agency led by Doug Guzman, former Executive Vice-President of the Royal Bank of Canada.

Impact: The agency will streamline procurement by eliminating redundant approvals and bureaucracy, providing technology SMEs with clearer visibility on contracting opportunities and reducing qualification and bid timelines.

Regional Defence Investment Initiative (RDII): $357.7 Million

Minister Joly launched the RDII, with $357.7 million over three years, including $64.9 million allocated to Québec through Economic Development Canada.

The initiative aims to accelerate SME integration into national and international defence supply chains, support dual-use (civilian and military) technologies, and strengthen regional industrial and innovation capacity.

Impact: Québec and Canadian technology SMEs can now apply for funding to develop capabilities, obtain critical certifications, or establish strategic partnerships with major defence contractors.

SME Credit for Defence Contracts: $1 Billion

The 2025 Federal Budget allocated $1 billion in credit to help SMEs access defence contracts, administered by the Business Development Bank of Canada (BDC).

Impact: SMEs can now secure long-term, tailored financing to deploy production, R&D, and certification capabilities required by major defence contractors.

Key Appointments of Interest

For which outreach is initiated on behalf of technology companies

•  

• Mark Schaan has been appointed Deputy Minister, Innovation, Science and Economic Development Canada. He will provide direct support to the Minister of Artificial Intelligence and Digital Innovation and advance Canada’s industrial AI and digital agenda, with the goal of positioning the country as a global leader in responsible technology development and use.

• Éric Caire has been appointed Parliamentary Secretary to the Minister of Cybersecurity and Digital Affairs.

📩  Would you like to learn more? For any questions related to public affairs or to further explore any of these issues, please contact our team at gouvernance@aqt.ca