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Quebec 2009 Budget
Canadian Tax and
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The following is a
summary of changes related to personal income tax:
Improvements to the refundable tax credit for child
care expenses, including an increase from $7,000 to $9,000 in the
limit on child care expenses for a child under 7 years of age.
Recognition of the Youth Alternative Program for
the application of the work premium supplement
Streamlining of the Quebec education savings
Tax changes related to business:
Introduction of a ten-year income tax holiday for a
new corporation dedicated to the commercialization of intellectual
Introduction of a five-year royalty holiday for new
natural gas wells
Extension to the forest and mining sectors of the
refundable tax credit for manpower training in the manufacturing
Improvements to refundable tax credits in the
Changes to the refundable tax credit for the
development of e-business
Changes to the refundable tax credit for design.
Other tax measures:
Increase in the rate of the Quebec sales tax (QST)
from 7.5% to 8.5% as of January 1, 2011.
Major improvements to the SME Growth Stock Plan,
which becomes the stock savings plan II
Temporary increase in the tax credit for the
acquisition of shares issued by Fondaction.
Introduction of a refundable tax credit for the
acquisition or lease of a new green vehicle
Quebec is also adopting some of the measures announced in the
Federal 2009 Budget, including the following:
the deduction for loss of value of investments in
an RRSP or RRIF after death
the increase in the small business limit from
$400,000 to $500,000. This will take effect March 20, 2009.
the time at which the acquisition of control of a
corporation takes place to determine whether it is a small business
corporation or a Canadian-controlled private corporation (CCPC)
the amendments pertaining to capital cost allowance
applicable to certain assets
the withdrawal of the restrictions applicable to
the deductibility of certain interest
The Quebec Finance Ministry already announced that it
would incorporate, with adaptations on the basis of its general
principles, the federal measure relating to the increase in the maximum
withdrawal limit under the Home Buyers Plan to $25,000.
January 14, 2009 Economic Statement
The January Economic Statement announced six new
measures, including the following two tax measures:
new refundable tax credit for home improvement and
20% of eligible expenditures in excess of
maximum credit $2,500
for expenditures made by a contractor under
terms of an agreement entered into after December 31, 2008 and
before January 1, 2010
expenditures must be paid no later than
June 30, 2010
improvements to the refundable tax credit for Quebec film and television production
base rates of 29.1667% and 39.375% will be
raised to 35% and 45%
new increase of 10% introduced for certain Quebec film and television productions
per film or per series capp on the tax credit,
currently $2,187,500, will be eliminated
maximum rate of the tax credit, currently
48.5625%, will be raised to 65%