Update on Québec's Economic and Financial Situation slide image

Update on Québec's Economic and Financial Situation

1.2 INFORMATION BULLETIN November 7, 2023 Amendments relating to the enhancement of certain parameters of the tax credit ☐ Enhancement of the rates of the tax credit relating to investment and innovation 2023-6 The tax legislation will be amended to enhance the rates of the tax credit relating to investment and innovation applicable as of January 1, 2024, so that the rate of the tax credit will be: ■ 25% for specified property acquired to be used mainly in a territory with low economic vitality; 20% for a specified property acquired to be used mainly in a territory with intermediate economic vitality; 15% for a specified property acquired to be used mainly in a territory with high economic vitality. Application date This enhancement will apply to specified expenses incurred: after December 31, 2023; or after March 25, 2021 and before January 1, 2024, for the acquisition of a specified property after December 31, 2023. However, this enhancement will not apply to specified expenses incurred after March 25, 2021 and before January 1, 2024, for the acquisition of a specified property after December 31, 2023 and before April 1, 2024 if: the property was acquired in accordance with a written obligation contracted before January 1, 2024; or the construction of the property by or on behalf of the corporation or partnership began before January 1, 2024. This enhancement will also not apply to property: acquired in accordance with a written obligation contracted before March 26, 2021; or whose construction by or on behalf of the corporation or partnership had started on March 25, 2021. ☐ Amendment to broaden the application of the refundability of the tax credit The tax credit relating to investment and innovation to which a qualified corporation is entitled, for a taxation year, may be deducted from its total taxes for the taxation year. The portion of the tax credit of a taxation year that cannot be used to reduce the corporation's total taxes for the year may be refunded, in whole or in part, or carried back to the preceding three taxation years or forward to the subsequent twenty taxation years. 6
View entire presentation