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Quebec Budget - March 28, 2017
Full details of the budget can be found on the Finance Quebec website, with tax changes in 2017-2018 Budget Plan - Additional Information on Fiscal Measures (pdf). See Bill 146, An Act to give effect mainly to fiscal measures announced in the Budget Speech delivered on 28 March 2017.
On February 22, 2017, the Finance ministry published Information Bulletin 2017-4 (pdf) which cancelled the increase in the age of eligibility for the age amount tax credit. The age of eligibility remains at age 65, and this change is retroactive to the 2016 taxation year. 2016 tax returns were being automatically revised for those who were 65 in 2016 and did not claim the age amount tax credit.
All proposed changes are subject to legislative approval.
Personal Tax Changes
 | Personal tax credit rate will be reduced to 16%, the lowest personal income tax rate, from 20%. As a result, the amounts of all credits are increased so that the tax reduction will be the same as it was with the 20% rate, except for the basic personal amount. It will be increased more, so that the tax reduction is increased by $55 per person. | ||||||||
| Some tax credits will still use the 20% rate:
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| Tax credit for persons living alone, with respect to age and for
retirement income will have 2 changes:
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| Health contribution - eliminated for 2016 for net income up to $134,095, reduced for incomes over $134,095 and up to $159,095 - refunds will be issued. As per the October 2016 Economic Update, eliminated for 2017. | ||||||||
| The RenoVert tax credit, a temporary refundable tax credit for eco-friendly renovations, is extended to March 31, 2018 | ||||||||
| The new refundable tax credit for bringing residential waste water systems up to standard will be available for 5 years, starting April 1, 2017. | ||||||||
| The deduction for residents of designated remote areas will be expanded to be made available for residents of the Magdalen Islands, for 2017 and later taxation years. |
Business and Other Fiscal Measures
More information on the measures below can be found in the 2017-2018 Budget Plan - Additional Information on Fiscal Measures (link above).
| Small Business Deduction (SBD) - the qualification criterion re the minimum number of worked will be modified to be based on the minimum number of hours paid. |
| Increase in additional deduction for transportation costs of certain remote manufacturing SMEs (small & medium enterprises). |
| Introduction of an additional deduction for transportation costs of all SMEs located in the special remote area. |
| Improvements to the tax holiday for large investment projects. |
| Introduction of an additional capital cost allowance of 35% where a business acquires manufacturing or processing equipment and computer equipment after March 28, 2017 and before April 1, 2019. |
| Higher increases respecting the refundable tax credit for Quebec film or television production. |
| Changes to the refundable tax credit for film production services. |
| Elimination of an applicability condition for the refundable tax credit for the production of multimedia events or environments staged outside Quebec |
| Streamlining of the refundable tax credit for corporations specialized in the production of multimedia titles. |
| Renewal and improvement o the refundable tax credits aimed at encouraging the creating of new financial services corporations. |
| Broadening the refundable tax credit for ethanol production in Quebec. |
| Increased recognition of major investments by Fondaction in social economy enterprises. |
| Increase to eligible investments by Capital régional et coopératif Desjardins in the Société en commandite Essor et Coopération. |
| Extension of the compensation tax for financial institutions and maintenance of rates for an additional five-year period. |
| Introduction of an allowance for community consultations in the Mining Tax Act. |
| Use of the territorial designation of the Northern Plan in the various tax measures specific to the mining sector. |
Revised: September 20, 2024