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Quebec -> QC Budgets -> 2008 Budget

Quebec 2008 Budget - March 13, 2008

Full details of the budget can be found on the Finance Quebec website, with the tax changes found in the Additional Information on Budgetary Measures (pdf file).

The following is a summary of changes related to personal income tax:

bullet Simplification and improvement of the refundable tax credit for home support costs for people aged 70+
bullet allowable costs increased from 25% to 30% of eligible home support services
bullet amount of eligible expenses increased from $15,000
bullet to $15,600 for non-dependent seniors
bullet to $21,600 for dependent seniors
bullet tax credit reduced if family net income greater than $50,000
bullet Attendant care expenses for a person with a sever and prolonged impairment in mental or physical functions may no longer be claimed as medical expenses, if the person or their spouse is entitled to the refundable tax credit for home support for elderly persons in respect of these expenses.  This applies to expenses paid after December 31, 2007.
bullet Beginning  with the 2009 taxation year, the age amount (currently $2,200 for persons 65+) will be indexed for inflation each year.
bullet retirement income tax credit - maximum eligible income will be raised to
bullet $1,750 for the 2009 tax year, and
bullet $2,000 for the 2010 tax year
bullet new refundable tax credit, beginning in 2008, for respite expenses of informal caregivers,
bullet equal to 30% of total expenses paid in the year for specialized respite services, to a maximum of $5,200 (maximum tax credit $1,560)
bullet reduced by 3% of the caregiver's family income in excess of $50,000.  This amount will be indexed annually.
bullet new adapted work premium, beginning in 2008, for people with a severely limited capacity for employment.  Maximum premium amounts in 2008 will be:
bullet $1,003.14 for a person living alone
bullet $1,476.54 for a couple without children
bullet $2,786.50 for a single parent family, and
bullet $3,281.20 for a couple with children
bullet supplement to the existing or adapted work premium for long-term recipients who give up last-resort financial assistance after March 31, 2008.
bullet automatic annual indexation, beginning with the 2009 tax year, for
bullet the deduction for workers, current maximum of $1,000
bullet the amount for emergency services volunteers, currently applies to the first $1,000 received
bullet the refundable tax credit for holders of a taxi driver's or owner's permit, current amount up to $500 per permit.
bullet stock option deduction granted to employees of innovative small and medium-sized enterprises (SMEs) will be increased to 50% from 25%
bullet the 12-hour rule will no longer apply to business meals consumed, after March 13, 2008, by commission employees whose office or employment is connected with the selling of property or negotiating of contracts on behalf of their employer.
bullet social security taxes paid to the US (FICA) will once again be eligible for the foreign tax credit as income tax on non-business income.
bullet refundable tax credit for child care expenses  - a new rate table will be used beginning in 2009, with 33 income brackets that will be automatically indexed for inflation each year.
bullet refundable tax credit for infertility medical assistance or adoption expenses increased, beginning in 2008, from 30% to 50% of eligible expenses, with a maximum tax credit of $10,000 per year.

Quebec is also adopting some of the measures announced in the Federal 2008 Budget, including the following measures regarding personal income tax:

bullet tax-free savings accounts (TFSA)
bullet changes to registered education savings plans (RESPs)
bullet reduction of the gross-up rate of dividends eligible for the enhanced dividend tax credit, but the actual dividend tax credit rates will not be changed.
bullet additions and clarifications to the list of expenses eligible for the non-refundable medical expense tax credit.

Revised: October 26, 2023

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