Update on Québec's Economic and Financial Situation
1.1
INFORMATION BULLETIN
November 7, 2023
2023-6
Amendments relating to the extension of the tax credit
□ Extension of the tax credit relating to investment and innovation
The tax legislation will be amended so that an additional five-year period will be allowed for a
qualified corporation to benefit from the tax credit relating to investment and innovation.
The definition of "specified property" will be amended so that a property may qualify as a specified
property if it is acquired before January 1, 2030, and otherwise meets the other conditions set out
in the tax legislation.
Similarly, a change will be made to the rules considered in applying the definition of “specified
expenses" to provide that such expenses must now be incurred before January 1, 2030.
☐ Correlative amendment to the definition of "territory with low economic
vitality"
The Institut de la statistique du Québec periodically issues the economic vitality index of the
territories. This tool classifies Québec's various localities according to specific indicators.
Following the publication of the 2023 edition of the economic vitality index of the territories, 10
amendments to the tax credit relating to investment and innovation were announced in Information
Bulletin 2023-411 to reflect the fact that the Appalaches and Témiscamingue RCMs are now in the
bottom quartile of the ranking, while they were previously in the third quartile, and that the
Matawinie and Argenteuil RCMs are no longer in the bottom quartile.
Given that the ending date of the tax credit relating to investment and innovation was initially
planned for December 31, 2024, no amendment was made to the tax legislation at the time to
remove the RCMs of Matawinie and Argenteuil from the definition of “territory with low economic
vitality".1
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However, due to the extension of the tax credit relating to investment and innovation until
December 31, 2029, the tax legislation will be amended to remove the RCMs of Matawinie and
Argenteuil from the definition of "territory with low economic vitality".
To ensure an appropriate transition period, this amendment will apply to specified expenses
incurred after June 30, 2025 for the acquisition of a specified property after that date.
Taxation Act, s. 1029.8.36.166.60.36, para. 1.
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9
Ibid., para. 2.
10
INSTITUT DE LA STATISTIQUE DU QUÉBEC, Bulletin d'analyse Indice de vitalité économique des territoires.
Édition 2023, [Online]
[https://statistique.quebec.ca/en/fichier/bulletin-analyse-indice-vitalite-economique-
territoires-edition-2023.pdf] (in French only).
MINISTÈRE DES FINANCES DU QUÉBEC, Information Bulletin 2023-4, June 27, 2023, pp. 13-15.
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12
See note 8.
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