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The refundable tax credit for the production of ethanol in Québec is modified so that the associated eligibility period no longer refers to a maximum period of 10 years and production of biodiesel fuel by a qualified corporation can now qualify for the credit.

Eligibility period

The condition respecting the maximum period of 10 years is eliminated from the definition of eligibility period. Thus a qualified corporation that began carrying on an ethanol production business in Québec on April 1, 2006, can claim the refundable tax credit for a maximum period of 12 years ending on March 31, 2018.

This change applies to a qualified corporation whose taxation year ends after March 28, 2017.

Eligibility of biodiesel fuel for the tax credit

The tax credit is broadened to apply to qualified corporations carrying on a biodiesel fuel production business

Broadly, the term "qualified corporation" refers to any corporation other than an excluded corporation (according to the usual definition) that, during a taxation year, has an establishment in Québec where it carries on a biodiesel fuel production business.

The term "eligible production of biodiesel fuel" refers to, in respect of a qualified corporation, for a particular month, the number of litres of biodiesel fuel that the qualified corporation produces in Québec and sells in Québec, during its eligibility period, to the holder of a collection officer's permit issued under the Fuel Tax Act, where the permit holder takes possession of the biodiesel fuel during the particular month, and that fuel is intended for Québec. The term "biodiesel fuel" has the same meaning as it has in the Fuel Tax Act.

It should be noted that most of the terms and conditions that apply to the refundable tax credit for the production of ethanol in Québec apply, with the necessary adaptations, to eligible biodiesel fuel production. This is true as regards the requirement to file a prescribed form, the calculation of the maximum amount of the tax credit for a particular month, the calculation and allocation of the monthly ceiling and the exclusion of property used in the course of operating a biodiesel fuel production plant in order to calculate the tax credit for investments relating to manufacturing and processing equipment.

The changes apply to biodiesel fuel produced by a qualified corporation after March 31, 2017, but before April 1, 2018, provided the acquirer takes possession of the fuel before April 1, 2018.

For more information, see pages A.51 to A.55 of the document entitled Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

The refundable tax credit for the production of ethanol in Québec is modified so that the associated eligibility period no longer refers to a maximum period of 10 years and production of biodiesel fuel by a qualified corporation can now qualify for the credit.

Eligibility period

The condition respecting the maximum period of 10 years is eliminated from the definition of eligibility period. Thus a qualified corporation that began carrying on an ethanol production business in Québec on April 1, 2006, can claim the refundable tax credit for a maximum period of 12 years ending on March 31, 2018.

This change applies to a qualified corporation whose taxation year ends after March 28, 2017.

Eligibility of biodiesel fuel for the tax credit

The tax credit is broadened to apply to qualified corporations carrying on a biodiesel fuel production business

Broadly, the term "qualified corporation" refers to any corporation other than an excluded corporation (according to the usual definition) that, during a taxation year, has an establishment in Québec where it carries on a biodiesel fuel production business. 

The term "eligible production of biodiesel fuel" refers to, in respect of a qualified corporation, for a particular month, the number of litres of biodiesel fuel that the qualified corporation produces in Québec and sells in Québec, during its eligibility period, to the holder of a collection officer's permit issued under the Fuel Tax Act, where the permit holder takes possession of the biodiesel fuel during the particular month, and that fuel is intended for Québec. The term "biodiesel fuel" has the same meaning as it has in the Fuel Tax Act.

It should be noted that most of the terms and conditions that apply to the refundable tax credit for the production of ethanol in Québec apply, with the necessary adaptations, to eligible biodiesel fuel production. This is true as regards the requirement to file a prescribed form, the calculation of the maximum amount of the tax credit for a particular month, the calculation and allocation of the monthly ceiling and the exclusion of property used in the course of operating a biodiesel fuel production plant in order to calculate the tax credit for investments relating to manufacturing and processing equipment.

The changes apply to biodiesel fuel produced by a qualified corporation after March 31, 2017, but before April 1, 2018, provided the acquirer takes possession of the fuel before April 1, 2018.

For more information, see pages A.51 to A.55 of the document entitled Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

A new deduction for transportation costs has been introduced. The amount of the additional deduction that a qualified corporation can claim for a taxation year depends on the scale of the corporation's activities in the special remote area and on the corporation's size. The amount may reach 10% of the qualified corporation's gross income for the taxation year.

The special remote area consists of the municipality of L'Île-d'Anticosti, the Communauté maritime des Îles-de-la-Madeleine, the Golfe-du-Saint-Laurent RCM (Côte-Nord) and the Kativik Regional Government (Nord-du-Québec).

Qualified corporation

The additional deduction is available to all Canadian-controlled private corporations whose paid-up capital, calculated on a consolidated basis, is less than $15 million. These corporations can claim this deduction in calculating their net income, regardless of their sector of activity.

However, so that corporations benefit fully from this deduction for a taxation year, the paid-up capital, calculated on a consolidated basis, must not exceed $10 million. Qualified corporations can benefit partially from the deduction for a taxation year where their paid-up capital, calculated on a consolidated basis for the year, is between $10 million and $15 million. The additional deduction is linearly reduced in accordance with the parameters in effect for the additional deduction for transportation costs of remote manufacturing small and medium-sized businesses (SMBs).

Determination of the level of activities in the special remote area

A qualified corporation may claim the 10% additional deduction for a taxation year where its labour or capital investments are primarily concentrated in the carrying on of a business located in the special remote area.

To that end, the corporation must show that over 50% of its cost of labour or over 50% of its cost of capital for the taxation year is attributable to the carrying on of the business located in the special remote area.

Moreover, there is no limit on the additional deduction for transportation costs of SMBs located in the special remote area.

Finally, a corporation cannot claim both the additional deduction for transportation costs of SMBs located in the special remote area and the additional deduction for transportation costs of remote manufacturing SMBs for a particular taxation year.

This measure applies to a qualified corporation's taxation year that begins after March 28, 2017.

For more information, see pages A.28 to A.30 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

A new deduction for transportation costs has been introduced. The amount of the additional deduction that a qualified corporation can claim for a taxation year depends on the scale of the corporation's activities in the special remote area and on the corporation's size. The amount may reach 10% of the qualified corporation's gross income for the taxation year.

The special remote area consists of the municipality of L'Île-d'Anticosti, the Communauté maritime des Îles-de-la-Madeleine, the Golfe-du-Saint-Laurent RCM (Côte-Nord) and the Kativik Regional Government (Nord-du-Québec).

Qualified corporation

The additional deduction is available to all Canadian-controlled private corporations whose paid-up capital, calculated on a consolidated basis, is less than $15 million. These corporations can claim this deduction in calculating their net income, regardless of their sector of activity.

However, so that corporations benefit fully from this deduction for a taxation year, the paid-up capital, calculated on a consolidated basis, must not exceed $10 million. Qualified corporations can benefit partially from the deduction for a taxation year where their paid-up capital, calculated on a consolidated basis for the year, is between $10 million and $15 million. The additional deduction is linearly reduced in accordance with the parameters in effect for the additional deduction for transportation costs of remote manufacturing small and medium-sized businesses (SMBs).

Determination of the level of activities in the special remote area

A qualified corporation may claim the 10% additional deduction for a taxation year where its labour or capital investments are primarily concentrated in the carrying on of a business located in the special remote area.

To that end, the corporation must show that over 50% of its cost of labour or over 50% of its cost of capital for the taxation year is attributable to the carrying on of the business located in the special remote area.

Moreover, there is no limit on the additional deduction for transportation costs of SMBs located in the special remote area.

Finally, a corporation cannot claim both the additional deduction for transportation costs of SMBs located in the special remote area and the additional deduction for transportation costs of remote manufacturing SMBs for a particular taxation year.

This measure applies to a qualified corporation's taxation year that begins after March 28, 2017.

For more information, see pages A.28 to A.30 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

A new deduction for transportation costs has been introduced. The amount of the additional deduction that a qualified corporation can claim for a taxation year depends on the scale of the corporation's activities in the special remote area and on the corporation's size. The amount may reach 10% of the qualified corporation's gross income for the taxation year.

The special remote area consists of the municipality of L'Île-d'Anticosti, the Communauté maritime des Îles-de-la-Madeleine, the Golfe-du-Saint-Laurent RCM (Côte-Nord) and the Kativik Regional Government (Nord-du-Québec).

Qualified corporation

The additional deduction is available to all Canadian-controlled private corporations whose paid-up capital, calculated on a consolidated basis, is less than $15 million. These corporations can claim this deduction in calculating their net income, regardless of their sector of activity.

However, so that corporations benefit fully from this deduction for a taxation year, the paid-up capital, calculated on a consolidated basis, must not exceed $10 million. Qualified corporations can benefit partially from the deduction for a taxation year where their paid-up capital, calculated on a consolidated basis for the year, is between $10 million and $15 million. The additional deduction is linearly reduced in accordance with the parameters in effect for the additional deduction for transportation costs of remote manufacturing small and medium-sized businesses (SMBs).

Determination of the level of activities in the special remote area

A qualified corporation may claim the 10% additional deduction for a taxation year where its labour or capital investments are primarily concentrated in the carrying on of a business located in the special remote area.

To that end, the corporation must show that over 50% of its cost of labour or over 50% of its cost of capital for the taxation year is attributable to the carrying on of the business located in the special remote area.

Moreover, there is no limit on the additional deduction for transportation costs of SMBs located in the special remote area.

Finally, a corporation cannot claim both the additional deduction for transportation costs of SMBs located in the special remote area and the additional deduction for transportation costs of remote manufacturing SMBs for a particular taxation year.

This measure applies to a qualified corporation's taxation year that begins after March 28, 2017.

For more information, see pages A.28 to A.30 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

A new deduction for transportation costs has been introduced. The amount of the additional deduction that a qualified corporation can claim for a taxation year depends on the scale of the corporation's activities in the special remote area and on the corporation's size. The amount may reach 10% of the qualified corporation's gross income for the taxation year.

The special remote area consists of the municipality of L'Île-d'Anticosti, the Communauté maritime des Îles-de-la-Madeleine, the Golfe-du-Saint-Laurent RCM (Côte-Nord) and the Kativik Regional Government (Nord-du-Québec).

Qualified corporation

The additional deduction is available to all Canadian-controlled private corporations whose paid-up capital, calculated on a consolidated basis, is less than $15 million. These corporations can claim this deduction in calculating their net income, regardless of their sector of activity.

However, so that corporations benefit fully from this deduction for a taxation year, the paid-up capital, calculated on a consolidated basis, must not exceed $10 million. Qualified corporations can benefit partially from the deduction for a taxation year where their paid-up capital, calculated on a consolidated basis for the year, is between $10 million and $15 million. The additional deduction is linearly reduced in accordance with the parameters in effect for the additional deduction for transportation costs of remote manufacturing small and medium-sized businesses (SMBs).

Determination of the level of activities in the special remote area

A qualified corporation may claim the 10% additional deduction for a taxation year where its labour or capital investments are primarily concentrated in the carrying on of a business located in the special remote area.

To that end, the corporation must show that over 50% of its cost of labour or over 50% of its cost of capital for the taxation year is attributable to the carrying on of the business located in the special remote area.

Moreover, there is no limit on the additional deduction for transportation costs of SMBs located in the special remote area.

Finally, a corporation cannot claim both the additional deduction for transportation costs of SMBs located in the special remote area and the additional deduction for transportation costs of remote manufacturing SMBs for a particular taxation year.

This measure applies to a qualified corporation's taxation year that begins after March 28, 2017.

For more information, see pages A.28 to A.30 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

The 7% additional deduction rate associated with the "special remote area" is raised to 10% as regards the transportation costs of remote manufacturing small and medium-sized businesses.

The "special remote area" consists of the municipality of L'Île-d'Anticosti, the Communauté maritime des Îles-de-la-Madeleine, the Golfe-du-Saint-Laurent RCM (Côte-Nord) and the Kativik Regional Government (Nord-du-Québec).

The 10% additional deduction rate applies to a taxation year beginning after March 28, 2017.

For more information, see pages A.27 and A.28 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

The 7% additional deduction rate associated with the "special remote area" is raised to 10% as regards the transportation costs of remote manufacturing small and medium-sized businesses.

The "special remote area" consists of the municipality of L'Île-d'Anticosti, the Communauté maritime des Îles-de-la-Madeleine, the Golfe-du-Saint-Laurent RCM (Côte-Nord) and the Kativik Regional Government (Nord-du-Québec).

The 10% additional deduction rate applies to a taxation year beginning after March 28, 2017.

For more information, see pages A.27 and A.28 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

The 7% additional deduction rate associated with the "special remote area" is raised to 10% as regards the transportation costs of remote manufacturing small and medium-sized businesses.

The "special remote area" consists of the municipality of L'Île-d'Anticosti, the Communauté maritime des Îles-de-la-Madeleine, the Golfe-du-Saint-Laurent RCM (Côte-Nord) and the Kativik Regional Government (Nord-du-Québec).

The 10% additional deduction rate applies to a taxation year beginning after March 28, 2017.

For more information, see pages A.27 and A.28 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

The 7% additional deduction rate associated with the "special remote area" is raised to 10% as regards the transportation costs of remote manufacturing small and medium-sized businesses.

The "special remote area" consists of the municipality of L'Île-d'Anticosti, the Communauté maritime des Îles-de-la-Madeleine, the Golfe-du-Saint-Laurent RCM (Côte-Nord) and the Kativik Regional Government (Nord-du-Québec).

The 10% additional deduction rate applies to a taxation year beginning after March 28, 2017.

For more information, see pages A.27 and A.28 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

The 7% additional deduction rate associated with the "special remote area" is raised to 10% as regards the transportation costs of remote manufacturing small and medium-sized businesses.

The "special remote area" consists of the municipality of L'Île-d'Anticosti, the Communauté maritime des Îles-de-la-Madeleine, the Golfe-du-Saint-Laurent RCM (Côte-Nord) and the Kativik Regional Government (Nord-du-Québec).

The 10% additional deduction rate applies to a taxation year beginning after March 28, 2017.

For more information, see pages A.27 and A.28 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

Note that we have added a link to our contact information.

On May 17, 2017, a new refundable tax credit for the restoration of secondary residences (cottages) damaged by the severe flooding that hit a number of Québec municipalities from April 5 to May 16, 2017, was announced.

This tax credit, which may be up to $18,000, is intended for individuals who have a contractor carry out post-disaster clean-up work, preservation work or repair work necessary to restore a site to its former state.

Individuals will be able to, under certain conditions, apply for advance payments of the tax credit. An application form will soon be available.

For more information, refer to Information Bulletin 2017-7 published by the Ministère des Finances du Québec or contact us.

Note that we have added a link to our contact information.

On May 17, 2017, a new refundable tax credit for the restoration of secondary residences (cottages) damaged by the severe flooding that hit a number of Québec municipalities from April 5 to May 16, 2017, was announced.

This tax credit, which may be up to $18,000, is intended for individuals who have a contractor carry out post-disaster clean-up work, preservation work or repair work necessary to restore a site to its former state.

Individuals will be able to, under certain conditions, apply for advance payments of the tax credit. An application form will soon be available.

For more information, refer to Information Bulletin 2017-7 published by the Ministère des Finances du Québec or contact us.

Note that we have added a link to our contact information.

On May 17, 2017, a new refundable tax credit for the restoration of secondary residences (cottages) damaged by the severe flooding that hit a number of Québec municipalities from April 5 to May 16, 2017, was announced.

This tax credit, which may be up to $18,000, is intended for individuals who have a contractor carry out post-disaster clean-up work, preservation work or repair work necessary to restore a site to its former state.

Individuals will be able to, under certain conditions, apply for advance payments of the tax credit. An application form will soon be available.

For more information, refer to Information Bulletin 2017-7 published by the Ministère des Finances du Québec or contact us.

On May 17, 2017, a new refundable tax credit for the restoration of secondary residences (cottages) damaged by the severe flooding that hit a number of Québec municipalities from April 5 to May 16, 2017, was announced.

This tax credit, which may be up to $18,000, is intended for individuals who have a contractor carry out post-disaster clean-up work, preservation work or repair work necessary to restore a site to its former state.

Individuals will be able to, under certain conditions, apply for advance payments of the tax credit. An application form will soon be available.

For more information, refer to Information Bulletin 2017-7 published by the Ministère des Finances du Québec.

To reflect the fact that Capital régional et coopératif Desjardins intends to raise its total investments in the Société en commandite Essor et Coopération from $40 million to $85 million, its constituting act will be amended.

The amendments will apply to fiscal years beginning after December 31, 2016.

For more information, see pages A.56 to A.58 of the Additional Information 2017-2018 (PDF – 2.71 MB) published by the Ministère des Finances.

To reflect the fact that Capital régional et coopératif Desjardins intends to raise its total investments in the Société en commandite Essor et Coopération from $40 million to $85 million, its constituting act will be amended.

The amendments will apply to fiscal years beginning after December 31, 2016.

For more information, see pages A.56 to A.58 of the Additional Information 2017-2018 (PDF – 2.71 MB) published by the Ministère des Finances.

To reflect the fact that Capital régional et coopératif Desjardins intends to raise its total investments in the Société en commandite Essor et Coopération from $40 million to $85 million, its constituting act will be amended.

The amendments will apply to fiscal years beginning after December 31, 2016.

For more information, see pages A.56 to A.58 of the Additional Information 2017-2018 (PDF – 2.71 MB) published by the Ministère des Finances.

To reflect the fact that Capital régional et coopératif Desjardins intends to raise its total investments in the Société en commandite Essor et Coopération from $40 million to $85 million, its constituting act will be amended.

The amendments will apply to fiscal years beginning after December 31, 2016.

For more information, see pages A.56 to A.58 of the Additional Information 2017-2018 (PDF – 2.71 MB) published by the Ministère des Finances.

Two changes will be made to tax legislation in order to extend the application period of the compensation tax and maintain the rates of the compensation tax at their current level for an additional five-year period.

Extension of the application period

It was previously provided that the compensation tax for financial institutions would be eliminated as of March 31, 2019. This period has been extended by five years.

Consequently, the application period for the compensation tax for financial institutions is extended to March 31, 2024.

Maintenance of rates

The current compensation tax rates are maintained for an additional period of five years and will continue to apply until March 31, 2022.

The 2.8%, 2.2%, 0.9% and 0.3% compensation tax rates initially prescribed for the period beginning on April 1, 2017, will apply to their respective tax bases for the period from April 1, 2022, to March 31, 2024.

For more information, see pages A.59 to A.61 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.