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Quebec October 8, 2013 Announcements re Tax Credits

A new personal refundable tax credit was announced for green renovation, EcoRenov.  This tax credit is for individuals who have green renovation work done on their residence by October 31, 2014.  The refundable tax credit will be for 20% of eligible expenditures in excess of $2,500, with a maximum tax credit of $10,000.  See our Tax Credit for Eco-Friendly Home Renovation (EcoRenov) information.

An improvement was announced to the tax credit for investments for manufacturing SMEs.  A new refundable tax credit is being introduce for manufacturing SMEs to support businesses seeking to modernize their business processes by integrating high value-added software packages.

More detail on these announcements can be found in Bulletin 2013-10 (pdf).

Quebec 2013 Budget - November 20, 2012

Full details of the budget can be found on the Finance Québec website, with the highlights found in the Budget at a Glance document(pdf file).

Tax measures proposed in the budget include the following items.  All changes are subject to legislative approval.

Personal Income Tax

Although the PQ indicated in their campaign that they would cut the dividend tax credit in half, this was not part of the budget.

New tax bracket

A new tax bracket is introduced for 2013 for income over $100,000, at a rate of 25.75%.  The previous high tax rate was 24%.  The new tax bracket will be indexed for 2014.  The rate used for calculating the donation tax credit for donations exceeding $200 will remain at 24%.

New progressive health contribution

For 2013, the flat health tax is being eliminated, and replaced by a progressive health contribution based on net individual income

Refundable tax credit for children

A refundable tax credit for physical, artistic and cultural activities for young people aged 5 to 16 will be introduced gradually starting in 2013.

20% of eligible expenses, up to a maximum of $100 for 2013, will be reimbursed.  The maximum eligible expense will increase by $100 each year until it reaches $500 in 2017.  This will provide a tax credit of up to $100 per child in 2017, for families with an income of $130,000 or less.

For a young person with an impairment, an additional tax credit equivalent to the maximum tax credit will be paid once a minimum of 25% of the maximum eligible expense has been paid.

Experienced worker tax credit

This credit provides a tax credit for experienced workers age 65+ on earned income in excess of $5,000, to a maximum of $3,000.  This maximum was supposed to increase in 2013 and subsequent years, but the increase has been deferred indefinitely.  See Budget Plan page H.51 (pdf).

Corporate Income Tax

Tax holiday for investments (THI)

The tax holiday will apply to businesses with new investment projects of $300 million or more that are approved within the next three years.  Eligible strategic sectors are manufacturing, including mineral and wood processing, value-added distribution centres, and data processing and hosting.

These corporations would have a ten-year holiday from corporate income tax and from contributions to the Health Services Fund with respect to their investment projects.

Other Measures

Tax on tobacco and alcohol

The specific tax on tobacco will be increased by $0.50 per pack.

The specific tax on alcoholic beverages will be increased - beer by $0.03 per bottle, wine by $0.17 per bottle and spirits by $0.26 per bottle.

Revised: October 26, 2023