Quebec Bill 6, which contains measures previously announced in Quebec's 2022 budget and in various information bulletins published in 2021 and 2022, received Assent on March 15, 2023. Specifically, Bill 6 includes previously announced measures to amend several provincial tax credits and deductions, including to extend enhancements to the Credit for Investment and Innovation (C3i).

The corporate income tax measures included in Bill 6 are considered enacted for U.S. GAAP purposes as of March 15, 2023 (the date the bill received Assent). These measures were considered substantively enacted for IFRS and Accounting Standards for Private Enterprise (ASPE) purposes on December 9, 2022 (the date the bill received first reading), as Quebec has a majority government.

Corporate tax measures

Bill 6 includes changes announced in Quebec’s 2022 budget to:

  • Extend the temporary increase to the C3i tax credit for one year, until December 31, 2023
  • Extend the refundable tax credit for the production of pyrolysis oil in Quebec for a period of 10 years, until March 31, 2033, and make certain changes to the credit
  • Introduce the refundable tax credit for the production of biofuel in Quebec, up to a maximum of 300 million litres per year, as of April 1, 2023.

Bill 6 also includes changes announced in Quebec information bulletins published in 2021 and 2022 to:

  • Clarify the definition of “qualified intellectual property asset” for the Incentive Deduction for the Commercialization of Innovations (IDCI), effective for taxation years that begin after December 31, 2020
  • Expand access to the tax credit to foster the retention of experienced workers, for taxation years that end after December 30, 2022
  • Expand access to the refundable tax credit for small- and medium-sized businesses in respect of persons with a severely limited capacity for employment, for taxation years that end after December 30, 2022
  • Narrow the refundable tax credit relating to mining, petroleum, gas or other resources, by excluding expenses related to oil, gas or coal incurred after March 31, 2023.

Harmonization measures

Bill 6 also includes changes to harmonize with certain federal changes that deal with, among other things:

  • Temporary immediate expensing of eligible property for Canadian-controlled private corporations (CCPCs), and subsequent expanded eligibility to include sole proprietorships and certain partnerships
  • Charitable partnerships
  • Eligibility conditions for a Quebec sales tax rebate for new housing

For more information, contact your KPMG adviser.

Information is current to April 10, 2023. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

The way you get your tax news is changing – Starting January 1, 2024, all tax news will be delivered exclusively through our TaxNewsFlash publication. If you're a current TaxNewsNow subscriber, you'll automatically receive TaxNewsFlash — no additional steps needed. If you're not subscribed but want insights from KPMG's Canadian tax professionals, subscribe to TaxNewsFlash.