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Quebec 2013 Budget
Canadian Tax and
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A new personal refundable tax credit was announced for
green renovation, EcoRenov. This tax credit is for individuals who
have green renovation work done on their residence by October 31,
2014. The refundable tax credit will be for 20% of eligible
expenditures in excess of $2,500, with a maximum tax credit of $10,000.
See our Tax Credit for Eco-Friendly Home Renovation
An improvement was announced to the tax credit for
investments for manufacturing SMEs. A new refundable tax credit is
being introduce for manufacturing SMEs to support businesses seeking to
modernize their business processes by integrating high value-added
Tax measures proposed in the budget include the
following items. All changes are subject to legislative approval.
Personal Income Tax
Although the PQ indicated in their campaign that they
would cut the dividend tax credit in half, this was not part of the
New tax bracket
A new tax bracket is introduced for 2013 for income
over $100,000, at a rate of 25.75%. The previous high tax rate was
24%. The new tax bracket will be indexed for 2014. The rate
used for calculating the donation tax credit for donations exceeding
$200 will remain at 24%.
For 2013, the flat health tax is being eliminated,
and replaced by a progressive health contribution based on net
Refundable tax credit for children
A refundable tax credit for physical, artistic and cultural
activities for young people aged 5 to 16 will be introduced gradually
starting in 2013.
20% of eligible expenses, up to a maximum of $100 for 2013, will be
reimbursed. The maximum eligible expense will increase by $100
each year until it reaches $500 in 2017. This will provide a tax credit of up to $100 per
child in 2017, for families with an income of $130,000 or less.
For a young person with an impairment, an additional tax credit
equivalent to the maximum tax credit will be paid once a minimum of
25% of the maximum eligible expense has been paid.
This credit provides a tax credit for experienced workers age 65+
on earned income in excess of $5,000, to a maximum of $3,000.
This maximum was supposed to increase in 2013 and subsequent years,
but the increase has been deferred indefinitely. See Budget
Plan page H.51 (pdf).
Corporate Income Tax
Tax holiday for investments (THI)
The tax holiday will apply to businesses with new
investment projects of $300 million or more that are approved within the
next three years. Eligible strategic sectors are manufacturing,
including mineral and wood processing, value-added distribution centres,
and data processing and hosting.
These corporations would have a ten-year holiday from
corporate income tax and from contributions to the Health Services Fund
with respect to their investment projects.
Tax on tobacco and alcohol
The specific tax on tobacco will be increased by $0.50
The specific tax on alcoholic beverages will be
increased - beer by $0.03 per bottle, wine by $0.17 per bottle and spirits
by $0.26 per bottle.