Canada: Tax measures in 2022 budget enacted (Quebec)
Measures to amend several provincial tax credits and deductions
Measures to amend several provincial tax credits and deductions
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 15 March 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). Read TaxNewsFlash
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 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 taxation 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 taxation 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 (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
Read an April 2023 report prepared by the KPMG member firm in Canada
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