The purpose of the tax shield is to offset a decrease in the following refundable work-incentive tax credits brought about by an increase in work income:

• the work premium;
• the adapted work premium (for individuals whose capacity for employment is severely limited); and
• the tax credit for childcare expenses.

As of the 2018 taxation year, the maximum increase in eligible work income relative to the previous year will be raised from $3,000 to $4,000 for each member of a household.

For more information, see page A.22 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.