2023 Quebec Economic and Financial Update
2023 Quebec Economic and Financial Update
Quebec Minister of Finance Eric Girard presented the province’s 2023 fall update on the province’s economic and financial situation on Tuesday, November 7, 2023.
Quebec Finance Minister Eric Girard delivered the Fall 2023 update on Quebec’s economic and financial situation on Tuesday, November 7, 2023.
The update did not include any new personal or business income tax rate changes. However, the government did announce several initiatives intended to provide better access to housing, address poverty challenges, support training in specific fields, adapt to climate change, and foster business investment.
Tax measures announced include:
Simplifying the Investment Tax Assistance Plan
The Quebec government will concentrate on two complementary measures:
- Renewal of the investment and innovation tax credit (C3i). The renewed C3i will support the acquisition of manufacturing and processing equipment, computer hardware and management software for eligible expenditures of up to $100 million over four years. Tax assistance through the renewed C3i is enhanced by five percent (from the rates originally in effect after December 31, 2023, and before January 2025) and will be fully refundable.
- Continued focus on the tax holiday for large investment projects to facilitate business investment projects.
The tax assistance rates will be the same for both measures (ranging from 15-25 percent). The eligibility period for the renewed C3i will begin January 1, 2024. It will extend until December 31, 2029, for both measures.
Indexation of personal income tax system and social benefits assistance
The personal income tax system and social benefits assistance will be indexed at 5.08 percent, effective January 1, 2024. This is in addition to the indexation of the federal personal income tax system. It increases the amounts of several deductions and tax credits, such as the basic personal amount, the maximum amount of the Family allowance, and the maximum amounts of the solidarity tax credit.
Indexation of the Quebec Pension Plan
The Quebec Pension Plan will see an indexation of more than four percent for retirees as of January 1, 2024. The actual rate will be known at the end of November 2023.
The finance minister will review recommendations from previous consultations in the coming months to identify ways to further increase Quebec’s potential.
Additional details and highlights from the Quebec 2023 Economic and Financial Update are available here.
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