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The tax shield refundable tax credit that was introduced as of tax year 2016
by the QC 2015 Budget will be enhanced by raising the maximum increase
in eligible work income relative to the previous year to $3,000 from
$2,500 for each member of a household. Details of the calculation of
this tax credit can be found on page A.13 of the Additional Information on Fiscal Measures
from the QC 2015 Budget.
Tax
credit for experienced workers will be further enhanced, by
lowering the age of eligibility to 62 beginning in 2018, with a $4,000
threshold for that age.
The tax credit for
charitable gifts/donations is currently limited, in that the tax
credit is calculated on a maximum amount of 75% of the donor's income
for the year in which the tax credit is claimed, with certain
exceptions. This limitation will be removed for the 2016
taxation year. The removal of the limitation does not appear to
apply to corporations, just to individuals.
For 2017 and later years, a higher rate of 25.75% will apply for donations over $200, to the
extent that an individual has taxable income that will be taxed at 25.75%.
Introduction of the RenoVert tax
credit: a temporary refundable tax
credit for eco-friendly renovations
Reduction of the Health Services Fund contribution rate for all
small and medium-sized businesses (SMBs), as of 2017. See pages
A.29 to A.34.
Small Business Deduction (SBD) - the qualification criterion re the
minimum number of employees will be replaced by a qualification
criterion concerning the minimum number of hours worked during the
taxation year.
See page A.35 to A.36. Changes will apply to a taxation year beginning
after December 31, 2016.
For Manufacturing SMBs (small and medium businesses), a corporation
may claim an SBD at the highest SBD rate obtained, using either the
qualification criterion concerning the minimum number of hours worked
or the qualification criterion based on its level of activity in the
primary or manufacturing sector. Labour cost will be the item
considered in determining the proportion of a corporation's activities
attributable to the primary sector or the manufacturing and processing
sector. This is effective for taxation years beginning
after December 31, 2016. See Page A.37.
Tax provisions applicable to the transfer of family businesses will
be eased - see pages A.38 to A.44.
Implementation of an income-averaging mechanism for forest producers
- see pages A.44 to A.49.
Introduction of a deduction in calculating (DIC) the taxable income
of a qualifying innovative manufacturing corporations, for 2017 and
later years. See pages A.49 to A.53.
Several other changes regarding businesses - see pages A.53 to A.74.
On May 6, 2016, Revenue Quebec published Information
Bulletin 2016-5 regarding harmonization with various measures announced
in the 2016 federal budget.
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