Update on Québec's Economic and Financial Situation
INFORMATION BULLETIN
November 7, 2023
2023-6
To benefit from such an extension, a corporation must submit the prescribed application form for
the tax credit relating to investment and innovation containing the prescribed information to the
Minister of Revenue no later than the latest of the following dates:
-
the 183rd day following that of the mailing of the notice of assessment or notice of
reassessment issued to the corporation and refusing in whole or in part the application for the
tax credit on the grounds that the tax credit was not claimed for the taxation year in which the
expenses were incurred;
June 30, 2024.
2. ABOLITION OF THE ADDITIONAL CAPITAL COST ALLOWANCE
OF 30%
On December 3, 2018, when Information Bulletin 2018-918 was published, an additional capital
cost allowance of 30% was introduced.
This additional deduction allows a taxpayer who acquires contemplated property after
December 3, 2018 to deduct in computing income from a business for a taxation year, an amount
corresponding to 30% of the amount deducted in computing such income, for the previous
taxation year, on account of the capital cost allowance for the contemplated property. 19
In summary, contemplated property means a particular property that is machinery or equipment
used in manufacturing or processing, namely, property included in Class 53 of Schedule B to the
Regulation respecting the Taxation Act, clean energy generation equipment, namely, property
included in Class 43.1 or 43.2 of the schedule, or property composed of general-purpose
electronic data processing equipment and systems software for that equipment, namely, property
included in Class 50 of the schedule.
The particular property must, among other things, be new at the time of its acquisition, and be
used primarily in Québec for a period of at least 730 days. Contemplated property also includes
a qualified intellectual property.
As a result of the amendments to the tax credit relating to investment and innovation in this
information bulletin, which essentially targets the same types of investment as the additional
capital cost allowance of 30%, this additional deduction will be abolished.
Accordingly, tax legislation will be amended to provide for the abolition of the additional capital
cost allowance of 30% as of January 1, 2024.
Accordingly, only property that meets the conditions otherwise set forth for claiming the additional
capital cost allowance of 30% and that is acquired not later than December 31, 2023, may give
entitlement to the additional capital cost allowance of 30% for the remainder of the period
applicable in respect of the qualified property.
18
19
MINISTÈRE DES FINANCES DU QUÉBEC, Information Bulletin 2018-9, December 3, 2018, pp. 16-17.
The additional 30% capital cost allowance also applies, with the necessary adjustments, when the property is
acquired by a partnership.
11View entire presentation