Coronavirus (COVID-19)

Click Coronavirus Disease (COVID-19) to see whether the measures adopted by Revenu Québec apply to the information on this page.

Published | Category : Income tax - businesses

Relaxed Rules for the Tax Credit for Investment

Information bulletin 2018-7 announced two temporary improvements to the tax credit for investment. 

Under the first, the base rate of the tax credit was increased to 5% regardless of the zone or region where qualified property could be used. The rates of increase were also increased so that the tax credit rate ranges from 10% to 40%, depending on the zone or region where the qualified property is primarily used. 

Under the second change, corporations in the metal processing sector are entitled to an additional tax credit rate increase of 5% or 10%, depending on the zone or region where the qualified property is used, subject to certain conditions.

Originally, the expenses covered by the new measures had to have been incurred for the acquisition, after August 15, 2018, and before January 1, 2020, of property other than:

  • property acquired under a written obligation entered into before August 16, 2018;
  • property whose construction by or for the taxpayer was under way on August 15, 2018.

The expenses also had to be incurred after August 15, 2018, and before January 1, 2020.

The legislation will be amended such that these measures also apply in respect of eligible expenses incurred after August 15, 2018, and before January 1, 2020, for the acquisition, after December 31, 2019, and before January 1, 2021, of qualified property that meets one of the following conditions: 

  • the property is acquired in accordance with a written obligation entered into after August 15, 2018, and before January 1, 2020; or 
  • the construction of the property by or for the corporation began after August 15, 2018, and before January 1, 2020

The other terms and conditions of the tax credit announced in information bulletin 2018-7 remain unchanged.

Fair. For all.

One vision. Concrete actions.

Read all about how we work to support and inform you. Our vision and values guide us as we carry out our role.

Veuillez patienter