This afternoon, the Honorable Eric Girard, Minister of Finance, presented the 2022-2023 Quebec budget. Normally the FL Fuller Landau tax team presents its top 5 highlights of the budget. However, this year’s budget was long on hyperbole but short on substance. Focusing on the substance, this year (and hopefully this year only) our top five differs from our usual fiscally-oriented picks, and focuses more on personal and non-tax measures. We speculate more impressive measures will be introduced as the Fall election approaches.

1. One-time Cost of Living Support Payment of $500 to Adult Quebecers

The budget included a one-time refundable tax credit of $500 per eligible individual with a net income of $100,000 or less. This will be paid automatically once Revenu Québec processes your 2021 personal income tax return. The credit will be gradually eliminated for net income in excess of $100,000 and is totally eliminated for net income in excess of $105,000. 

2. C3i Investment and Innovation Tax Credit One-Year Extension

In the 2021-2022 budget, a temporary increase was announced to the tax credit rate for investment and innovation, doubling the tax credit rates for eligible expenditures incurred, with respect to manufacturing and processing equipment, general-purpose electronic data processing equipment and certain management software packages. The doubling of the tax credit rates was originally slated to end on December 31, 2022. This year’s budget extends the temporary increase for an additional year until December 31, 2023. 

3. Assistance for Individuals Repaying Student Loans

Individuals required to repay amounts obtained under student financial assistance programs do not have to pay interest on those amounts for the period from April 1, 2022 to March 31, 2023.

4. Major Cultural Donations

The Major Cultural Donations Tax Credit was introduced in July 2013. It added an additional 25% tax credit for major cultural gifts made to eligible recipients for cultural donations made before January 1, 2023. This additional credit will be made permanent for donations of at least $5,000 and up to $25,000. The maximum credit that can be claimed is $6,250. An individual may claim this tax credit for only one major cultural gift.

5. Continued Investment in Healthcare, Higher Education and Support for Our Communities

The budget contains various spending measures with a view to increase Quebec’s prosperity. These measures include:

• $8.9 billion to restore the healthcare system
• $4.2 billion to stimulate economic growth
• $2.8 billion to support education and higher education
• $2.2 billion to strengthen community action and support communities