Canada: Proposed corporate income tax and harmonization measures from 2022 budget (Quebec)
Quebec Bill 6 received first reading on 9 December 2022
Quebec Bill 6 received first reading on 9 December 2022
Quebec Bill 6, which contains corporate income tax and harmonization measures previously announced in Quebec's 2022 budget, received first reading on 9 December 2022.
Corporate tax measures
Bill 6 includes changes announced in Quebec’s 2022 budget to:
- Extend the temporary increase to the Credit for Investment and Innovation tax credit for one year, until 31 December 2023
- Extend the refundable tax credit for the production of pyrolysis oil in Quebec for a period of 10 years, until 31 March 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 1 April 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 tax years that begin after 31 December 2020
- Expand access to the tax credit to foster the retention of experienced workers, for tax years that end after 30 December 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 tax years that end after 30 December 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 31 March 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
- Expanded eligibility for immediate expensing of eligible property to include sole proprietorships and certain partnerships
- Charitable partnerships
- The conditions of eligibility for a rebate of the Quebec sales tax in respect of new housing
Read a December 2022 report prepared by the KPMG member firm in Canada
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