Update on Québec's Economic and Financial Situation
INFORMATION BULLETIN
November 7, 2023
2023-6
Those rates are subject to a temporary increase until December 31, 2023, to a maximum of 40%.7
The table below shows the current rates of the tax credit relating to investment and innovation,
based on the date on which the specified property is acquired and the specified expenses are
incurred, and on the territory where the specified property is acquired to be used mainly.
TABLE 1
Rates of the tax credit relating to investment and innovation
(per cent)
Territory where the property is
acquired to be used mainly
Rates applicable after
March 10, 2020, and
before March 26, 2021
Rates applicable after
March 25, 2021, and
before January 1, 2024
Rates applicable after
December 31, 2023, and
before January 1, 2025
Territory with low economic
vitality
20
40
40
20
Territory with intermediate
economic vitality
15
50
30
15
Territory with high economic
vitality
10
20
20
10
Given the upcoming ending date of the tax credit, currently scheduled for December 31, 2024,
and the end of the temporary rate increase, scheduled for December 31, 2023, the government
wishes to make changes to the tax credit relating to investment and innovation to further
encourage investment by providing a more favourable and predictable tax environment.
Therefore, in order to support Québec businesses in their objective to increase productivity and
further encourage wealth creation in Québec, particularly in a context of labour shortage, tax
legislation will be amended to extend and enhance the tax credit relating to investment and
innovation.
More specifically, these amendments will consist in:
extending the tax credit for an additional five-year period;
enhancing the rates applicable as of January 1, 2024;
making the tax credit fully refundable for all qualified corporations;
shortening the period over which the $100 million cumulative limit is calculated;
easing certain conditions for claiming the tax credit.
Correlatively, the definition of "territory with low economic vitality" will be amended, and a deadline
extension will be provided for in certain specific circumstances.
7
MINISTÈRE
Information,
DES FINANCES DU QUÉBEC, Budget 2021-2022- Additional
pp. A.12-A.14. Id., Budget 2022-2023 - Additional Information, March 22, 2022, pp. A.9-A.11.
March 25, 2021,View entire presentation