Update on Québec's Economic and Financial Situation
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INFORMATION BULLETIN
November 7, 2023
2023-6
the qualified corporation's eligible expenses 14 and the share of the eligible expenses of a
qualified partnership of which the corporation is a member, in respect of which the corporation
can benefit, for the particular year, or could benefit, for a taxation year ended in the 36-month
period preceding the beginning of the particular year, from a higher rate or from the
refundability of the investment tax credit relating to manufacturing and processing equipment
(hereinafter referred to as the "tax credit for investments");
if the corporation is a member of an associated group, the eligible expenses of another
corporation that is a member of the associated group and the share of the eligible expenses
of a qualified partnership of which the other corporation is a member, in respect of which the
other corporation can benefit, for a taxation year ended in the particular year or at the same
time as the particular year, or could benefit, for a taxation year ended in the 36-month period
preceding the beginning of the particular year, from a higher rate or from the refundability of
the tax credit for investments.
The balance of the cumulative limit on a qualified partnership's specified expenses, for a particular
fiscal period, will be equal to the amount by which $100 million exceeds the total of the following
amounts:
the specified expenses of the partnership incurred in a fiscal period ended in the 36-month
period preceding the beginning of the particular fiscal period in respect of which a qualified
corporation that is a member of the partnership could claim the tax credit relating to
investment and innovation;
the eligible expenses incurred by the partnership in the particular fiscal period or in a fiscal
period ended in the 36-month period preceding the beginning of the particular fiscal period in
respect of which a qualified corporation that is a member of the partnership can benefit or
could benefit from a higher rate or from the refundability of the tax credit for investments.
The other rules currently in effect concerning the balance of the cumulative specified expense
limit of a qualified corporation or a qualified partnership, or concerning a joint venture, continue to
apply.
Application date
This amendment to the calculation of the balance of the cumulative specified expense limit will
apply in respect of a taxation year beginning after December 31, 2023.
14
Taxation Act, s. 1029.8.36.166.60.36.
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