The Minister of Finance, Éric Girard presented the 2022-2023 Quebec budget on March 22, 2022. Below are the tax highlights of the budget.

Measures Concerning Individuals

Introduction of the refundable tax credit granting a one-time amount to mitigate the increase in the cost of living

An additional tax assistance measure, called the “refundable tax credit granting a one-time amount to mitigate the increase in the cost of living” will be introduced.

In summary, an eligible individual will be entitled, in the 2022 calendar year, to the payment of an amount of up to $500 in respect of a refundable tax credit granting a one-time amount to mitigate the increase in the cost of living. This amount will be reduced for individuals whose net income exceeds $100 000 for the 2021 calendar year. Where the individual’s net income for the 2021 calendar year exceeds $105 000, no credit will be available.

This lump-sum assistance will be provided to all eligible adults who have filed their income tax return for the 2021 calendar year with Revenu Quebec. No application is required. As of March 23, 2022, Revenu Quebec will process income tax returns for the 2021 calendar year by adding the refundable tax credit. Where, on March 22, 2022, a notice of assessment for the 2021 calendar year has already been issued to an individual by Revenu Quebec, a new notice of assessment will be sent to the individual to include the refundable tax credit.

Perpetuation of the tax credit for a major cultural gift

The additional tax credit of 25% for a major cultural gift was introduced in 2013.

This tax credit, of up to $6 250, is available to individuals, under certain conditions, in relation to a donation made to an eligible cultural donee before January 1, 2023. More specifically, an individual, other than a trust, may claim, for a taxation year, in addition to the tax credit for gifts, a non-refundable tax credit corresponding to 25% of the eligible amount of a gift of money of at least $5 000, and of up to $25 000, made by the individual or the individual’s succession to an eligible cultural donee. However, an individual may claim this tax credit for only one major cultural gift.

The tax legislation will be amended to remove the deadline for making a donation so that it can be recognized as a major cultural gift, thereby making the tax credit for a major cultural gift permanent.

Measures Affecting Businesses

Extension of the temporary increase in the tax credit relating to investment and innovation

This increase will apply to:

• a property acquired in accordance with a written obligation contracted before January 1, 2024; or
• the construction of a property by or on behalf of the corporation or partnership that has started before January 1, 2024.

However, the increase will not apply to:

• a property acquired in accordance with a written obligation contracted on or before on or before March 25, 2021;
• a property whose construction by or on behalf of the corporation or partnership had started on March 25, 2021.

The result of this announcement is as follows:

Introduction of the refundable tax credit for the production of biofuel in Quebec

The tax legislation will be amended to include a refundable tax credit for the production of biofuel in Quebec. Contact your Crowe BGK advisor for more information.

Extension of the refundable tax credit for the production of pyrolysis in Quebec

The refundable tax credit for the production of pyrolysis oil in Quebec, initially introduced as part of the March 27, 2018 budget, will be extended for a period of ten years, that is, until March 31, 2033. Contact your Crowe BGK advisor if you wish to obtain more information on this tax credit.

Other Measures

Changes to the Roulez vert program

The Roulez vert program provides rebates for the purchase of several types of electric vehicles, as well as for the purchase and installation of charging stations.

The maximum rebate granted for the acquisition of electric vehicles under the Roulez vert program will be adjusted as of April 1, 2022: