Quebec - 2009 Budget

The 2009 Quebec budget was tabled on March 19, 2009.

New Stock Saving Plan SSP II
Quebec taxpayers who purchase shares in an eligible Quebec corporation (maximum $200 million assets) and hold the shares for a minimum of 2 years will be eligible for a tax deduction of:

• 150% for investments before December 31,2010 and
• 100% for investments after December 31, 2010 and before January 1, 2015.

Sales Tax
The QST will be increased from 7.5% to 8.5% as of January 1, 2011. To offset this increase for low-income Quebecers, the refundable Quebec sales tax credit will be increased by $125 for singles and $150 for couples beginning in 2011.

Child Care Expenses
The maximum expenses eligible for the child care credit are increased from $7,000 to $9,000 for children under 7. The credit rate is also increased for families with income over $85,000.

RRSP/RRIF losses after Death
Mirroring the federal changes, losses on RRSP and RRIF assets after death will be deductible on the Quebec return.

Capital Cost Allowance
The 50% accelerated depreciation for manufacturing and processing equipment is extended until the end of 2011.

Computer equipment acquired before February 2011 will be eligible of 100% accelerated depreciation. (matches the federal budget change).

Small Business Deduction
The small business deduction is increased for $400,000 to $500,000 beginning March 20, 2009. (matches federal budget changes)

Income Tax Holiday
Businesses dedicated to the commercialization of intellectual property that are incorporated in Canada after the budget and before April 1, 2014 will be eligible for a ten-year income tax holiday (starting at the date of incorporation).