Extending the electricity discount programs

The government plans to postpone by four years certain elements pertaining to the electricity discount programs, namely (i) the Electricity Discount Program Applicable to Consumers Billed at Rate L, (ii) the Electricity Discount Program to Promote Greenhouse Development and (iii) the Electricity Discount Program for Large Power Consumers Served by Off-Grid Systems.

• The deadline for applying for the programs will be extended from December 31, 2019 to December 31, 2023
• The end of the investment period will change from December 31, 2021 to December 31, 2025.
• The discount application period will be extended from December 31, 2028 to December 31, 2032.

Enhancement of the family allowance

Starting in January 2020, the amounts of the family allowance for all children from the same family will be standardized regardless of the number of children.

• The maximum amounts granted to a family will be $2,515 for each child under 18 years of age.

• The minimum amounts granted to a family will be increased to $1,000 for each child under 18 years of age.

  Increases in the family allowance (dollars)
  	Increase in 2020
  	Before	After	Gain
  Maximum amount
  First child	2,515	2,515	–
  Second and third children	1,765	2,515	750
  Fourth child and subsequent children	1,884	2,515	631
  Minimum amount
  First child	706	1,000	294
  Second child and subsequent children	652	1,000	348

Elimination of the additional contribution for childcare

Effective retroactively to January 1, 2019, parents will no longer have to pay the additional contribution when they file their income tax return.

All parents will pay a single reduced amount of $8.25 per day for 2019.

Amendments to the measure relating to the deferral of the payment of tax on a deemed disposition of interests in a qualified public corporation

The tax legislation provides for the deemed disposition of property at fair market value in certain circumstances. This is the case, for example, on a person’s death or on the 21^st anniversary of a trust.

Briefly, subject to the provision of security satisfactory to the Minister of Revenue, a deceased individual’s legal representative or a trust may elect to defer, for a maximum period of 20 years, the payment of Québec income tax attributable to the deemed disposition of eligible shares.

Change in the definition of “eligible share”

The tax legislation will be amended so that the expression “eligible share”, for the purposes of the 20-year tax payment deferral measure, means:

• a share forming part of a large block of shares or of a portion of a large block of shares of the capital stock of a qualified public corporation; or
• a share of the capital stock of a private corporation more than 50% (previously 95%) of the fair market value of the assets of which is attributable to a large block of shares or a portion of a large block of shares of the capital stock of a qualified public corporation.

Determination of the portion of the tax the payment of which may be deferred

Where the eligible shares that will be deemed to have been disposed of are shares of the capital stock of a private corporation, the portion of the tax the payment of which may be deferred in respect of all shares, each of which is an eligible share of a particular class of the capital stock of the private corporation, will be equal to the product obtained by multiplying the amount of tax resulting from the deemed disposition of such eligible shares of the particular class by the proportion of the fair market value of the assets of the private corporation attributable to a large block of shares or a portion of a large block of shares of the capital stock of a qualified public corporation over the fair market value of all assets of the private corporation.

Moreover, where the proportion of the fair market value of the assets of a private corporation attributable to a large block of shares or a portion of a large block of shares of the capital stock of a qualified public corporation over the fair market value of all assets of the private corporation is more than 95%, this proportion will be deemed to be equal to 100% and a full deferral of the payment of tax may be granted.

These amendments will apply to a deemed disposition of an eligible share that occurs on or after November 7, 2019.