Revenu Québec Infos

The refundable tax credit for the production of ethanol in Québec has been extended for five years. Moreover, to simplify the application of the tax credit and improve the predictability of the assistance qualified corporations can receive, a fixed rate will be used to calculate the tax credit. The monthly ceiling on the production of ethanol will also be raised.

Extension of the eligibility period

Tax legislation will be amended so that the eligibility period for the refundable tax credit for the production of ethanol in Québec ends on March 31, 2023.

Change to the calculation of the refundable tax credit

Tax legislation will also be amended to provide that the refundable tax credit for the production of ethanol in Québec will be calculated at a fixed rate of $0.03 per litre as of April 1, 2018.

If a qualified corporation's taxation year includes March 31, 2018, the tax credit is calculated in two ways:

• For eligible production of ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, the variable rate for each of these months applies, taking into account the average monthly price of crude oil.
• For eligible production of ethanol for each of the months in the part of the taxation year that follows March 31, 2018, a fixed rate of $0.03 per litre applies.

Change to the monthly ceiling on the production of ethanol

The monthly ceiling on the production of ethanol for a qualified corporation increased on April 1, 2018, so that, for a particular month beginning after March 31, 2018, it is calculated by multiplying 821,917 litres by the number of days in the particular month.

If a qualified corporation's taxation year includes March 31, 2018, the corporation's monthly ceiling on the production of ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, is calculated by multiplying 345,205 litres by the number of days in the month. Its monthly ceiling on the production of ethanol for each of the months in the part of the taxation year that follows March 31, 2018, is calculated by multiplying 821,917 litres by the number of days in the month.

For more information, see pages A.93 to A.95 of Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The refundable tax credit for the production of ethanol in Québec has been extended for five years. Moreover, to simplify the application of the tax credit and improve the predictability of the assistance qualified corporations can receive, a fixed rate will be used to calculate the tax credit. The monthly ceiling on the production of ethanol will also be raised.

Extension of the eligibility period

Tax legislation will be amended so that the eligibility period for the refundable tax credit for the production of ethanol in Québec ends on March 31, 2023.

Change to the calculation of the refundable tax credit

Tax legislation will also be amended to provide that the refundable tax credit for the production of ethanol in Québec will be calculated at a fixed rate of $0.03 per litre as of April 1, 2018.

If a qualified corporation's taxation year includes March 31, 2018, the tax credit is calculated in two ways:

• For eligible production of ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, the variable rate for each of these months applies, taking into account the average monthly price of crude oil.
• For eligible production of ethanol for each of the months in the part of the taxation year that follows March 31, 2018, a fixed rate of $0.03 per litre applies.

Change to the monthly ceiling on the production of ethanol

The monthly ceiling on the production of ethanol for a qualified corporation increased on April 1, 2018, so that, for a particular month beginning after March 31, 2018, it is calculated by multiplying 821,917 litres by the number of days in the particular month.

If a qualified corporation's taxation year includes March 31, 2018, the corporation's monthly ceiling on the production of ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, is calculated by multiplying 345,205 litres by the number of days in the month. Its monthly ceiling on the production of ethanol for each of the months in the part of the taxation year that follows March 31, 2018, is calculated by multiplying 821,917 litres by the number of days in the month.

For more information, see pages A.93 to A.95 of Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The refundable tax credit for the production of ethanol in Québec has been extended for five years. Moreover, to simplify the application of the tax credit and improve the predictability of the assistance qualified corporations can receive, a fixed rate will be used to calculate the tax credit. The monthly ceiling on the production of ethanol will also be raised.

Extension of the eligibility period

Tax legislation will be amended so that the eligibility period for the refundable tax credit for the production of ethanol in Québec ends on March 31, 2023.

Change to the calculation of the refundable tax credit

Tax legislation will also be amended to provide that the refundable tax credit for the production of ethanol in Québec will be calculated at a fixed rate of $0.03 per litre as of April 1, 2018.

If a qualified corporation's taxation year includes March 31, 2018, the tax credit is calculated in two ways:

• For eligible production of ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, the variable rate for each of these months applies, taking into account the average monthly price of crude oil.
• For eligible production of ethanol for each of the months in the part of the taxation year that follows March 31, 2018, a fixed rate of $0.03 per litre applies.

Change to the monthly ceiling on the production of ethanol

The monthly ceiling on the production of ethanol for a qualified corporation increased on April 1, 2018, so that, for a particular month beginning after March 31, 2018, it is calculated by multiplying 821,917 litres by the number of days in the particular month.

If a qualified corporation's taxation year includes March 31, 2018, the corporation's monthly ceiling on the production of ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, is calculated by multiplying 345,205 litres by the number of days in the month. Its monthly ceiling on the production of ethanol for each of the months in the part of the taxation year that follows March 31, 2018, is calculated by multiplying 821,917 litres by the number of days in the month.

For more information, see pages A.93 to A.95 of Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

This measure was announced in the Budget Speech of March 27, 2018.

This measure was announced in the Budget Speech of March 27, 2018.

The refundable tax credit for the production of biodiesel fuel in Québec has been extended for five years. The tax credit is now calculated using a fixed rate, and the monthly ceiling on the production of biodiesel fuel has been increased.

Extension of the eligibility period

Tax legislation will be amended so that the eligibility period for the refundable tax credit for biodiesel fuel production in Québec ends on March 31, 2023.

To be included in the eligible production of biodiesel fuel of a qualified corporation for a particular month, biodiesel fuel must be produced after March 31, 2017, and before April 1, 2023, and the purchaser must take possession of it in the particular month, before April 1, 2023.

Change to the calculation of the refundable tax credit

Tax legislation will also be amended to provide that the refundable tax credit for the production of biodiesel fuel in Québec will be calculated at a fixed rate of $0.14 per litre as of April 1, 2018.

If a qualified corporation's taxation year includes March 31, 2018, the refundable tax credit is calculated in two ways:

• For eligible production of biodiesel fuel for each of the months in the part of the taxation year that precedes April 1, 2018, the variable rate for each of these months applies, taking into account the average monthly price of crude oil.
• For eligible production of biodiesel fuel for each of the months in the part of the taxation year that follows March 31, 2018, a fixed rate of $0.14 per litre applies.

Change to the monthly ceiling on the production of biodiesel fuel

The monthly ceiling on the production of biodiesel fuel for a qualified corporation increased on April 1, 2018, so that, for a particular month beginning after March 31, 2018, it is calculated by multiplying 821,917 litres by the number of days in the particular month.

If a qualified corporation's taxation year includes March 31, 2018, the corporation's monthly ceiling on the production of biodiesel fuel for each of the months in the part of the taxation year that precedes April 1, 2018, is calculated by multiplying 345,205 litres by the number of days in the month. Its monthly ceiling on the production of biodiesel fuel for each of the months in the part of the taxation year that follows March 31, 2018, is calculated by multiplying 821,917 litres by the number of days in the month.

For more information, see pages A.98 to A.100 of Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The refundable tax credit for the production of biodiesel fuel in Québec has been extended for five years. The tax credit is now calculated using a fixed rate, and the monthly ceiling on the production of biodiesel fuel has been increased.

Extension of the eligibility period

Tax legislation will be amended so that the eligibility period for the refundable tax credit for biodiesel fuel production in Québec ends on March 31, 2023.

To be included in the eligible production of biodiesel fuel of a qualified corporation for a particular month, biodiesel fuel must be produced after March 31, 2017, and before April 1, 2023, and the purchaser must take possession of it in the particular month, before April 1, 2023.

Change to the calculation of the refundable tax credit

Tax legislation will also be amended to provide that the refundable tax credit for the production of biodiesel fuel in Québec will be calculated at a fixed rate of $0.14 per litre as of April 1, 2018.

If a qualified corporation's taxation year includes March 31, 2018, the refundable tax credit is calculated in two ways:

• For eligible production of biodiesel fuel for each of the months in the part of the taxation year that precedes April 1, 2018, the variable rate for each of these months applies, taking into account the average monthly price of crude oil.
• For eligible production of biodiesel fuel for each of the months in the part of the taxation year that follows March 31, 2018, a fixed rate of $0.14 per litre applies.

Change to the monthly ceiling on the production of biodiesel fuel

The monthly ceiling on the production of biodiesel fuel for a qualified corporation increased on April 1, 2018, so that, for a particular month beginning after March 31, 2018, it is calculated by multiplying 821,917 litres by the number of days in the particular month.

If a qualified corporation's taxation year includes March 31, 2018, the corporation's monthly ceiling on the production of biodiesel fuel for each of the months in the part of the taxation year that precedes April 1, 2018, is calculated by multiplying 345,205 litres by the number of days in the month. Its monthly ceiling on the production of biodiesel fuel for each of the months in the part of the taxation year that follows March 31, 2018, is calculated by multiplying 821,917 litres by the number of days in the month.

For more information, see pages A.98 to A.100 of Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The refundable tax credit for the production of biodiesel fuel in Québec has been extended for five years. The tax credit is now calculated using a fixed rate, and the monthly ceiling on the production of biodiesel fuel has been increased.

Extension of the eligibility period

Tax legislation will be amended so that the eligibility period for the refundable tax credit for biodiesel fuel production in Québec ends on March 31, 2023.

To be included in the eligible production of biodiesel fuel of a qualified corporation for a particular month, biodiesel fuel must be produced after March 31, 2017, and before April 1, 2023, and the purchaser must take possession of it in the particular month, before April 1, 2023.

Change to the calculation of the refundable tax credit

Tax legislation will also be amended to provide that the refundable tax credit for the production of biodiesel fuel in Québec will be calculated at a fixed rate of $0.14 per litre as of April 1, 2018.

If a qualified corporation's taxation year includes March 31, 2018, the refundable tax credit is calculated in two ways:

• For eligible production of biodiesel fuel for each of the months in the part of the taxation year that precedes April 1, 2018, the variable rate for each of these months applies, taking into account the average monthly price of crude oil.
• For eligible production of biodiesel fuel for each of the months in the part of the taxation year that follows March 31, 2018, a fixed rate of $0.14 per litre applies.

Change to the monthly ceiling on the production of biodiesel fuel

The monthly ceiling on the production of biodiesel fuel for a qualified corporation increased on April 1, 2018, so that, for a particular month beginning after March 31, 2018, it is calculated by multiplying 821,917 litres by the number of days in the particular month.

If a qualified corporation's taxation year includes March 31, 2018, the corporation's monthly ceiling on the production of biodiesel fuel for each of the months in the part of the taxation year that precedes April 1, 2018, is calculated by multiplying 345,205 litres by the number of days in the month. Its monthly ceiling on the production of biodiesel fuel for each of the months in the part of the taxation year that follows March 31, 2018, is calculated by multiplying 821,917 litres by the number of days in the month.

For more information, see pages A.98 to A.100 of Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

A refundable tax credit for pyrolysis oil production in Québec has been introduced. This refundable tax credit, at a rate of $0.08 per litre, will be granted to a qualified corporation in respect of eligible pyrolysis oil it produces in Québec from residual forest biomass, which is sold in and intended for Québec, up to 100 million litres per year. A qualified corporation will be able to claim this tax credit for a period of five years beginning on April 1, 2018.

Qualified corporation

A qualified corporation is, for a taxation year, a corporation, other than an excluded corporation, that, in the taxation year, has an establishment in Québec where it carries on an eligible pyrolysis oil production business.

Calculating the refundable tax credit

A qualified corporation's refundable tax credit for pyrolysis oil production in Québec, for a taxation year, is equal to the aggregate of the amounts, each of which is determined for a particular month of the taxation year, and will correspond to the product obtained by multiplying, by a rate of $0.08 per litre, the lesser of the number of litres in the qualified corporation's eligible production of pyrolysis oil for the particular month and the number of litres in its monthly ceiling on the production of pyrolysis oil for that month.

Eligible production of pyrolysis oil

A qualified corporation's eligible production of pyrolysis oil, for a particular month in a taxation year, is the number of litres of eligible pyrolysis oil produced in Québec by the corporation after March 31, 2018, but before April 1, 2023, that is sold by the corporation in Québec to a person that takes possession of it in the particular month, but before April 1, 2023, and that is intended for Québec.

Eligible pyrolysis oil

For the purposes of the refundable tax credit, eligible pyrolysis oil is the liquid mixture of oxygenated organic matter obtained from the condensation of vapours resulting from the thermal decomposition of residual forest biomass.

Residual forest biomass is forest biomass resulting from harvesting activities—residual trees (branches and tops), non-commercial tree parts, and twigs and leaves—as well as that resulting from primary or secondary processing, namely, bark, shavings, sawdust and woodchips. It includes non-contaminated, additive-free deconstructed wood, if it is not part of a hierarchical use approach along the lines of 3R-RD (source reduction, reuse, recycling, reclamation and disposal). However, standing trees are excluded.

Pyrolysis oil intended for Québec

Eligible pyrolysis oil is considered to be intended for Québec if it is sold by the qualified corporation to a person and it is reasonable to expect that the person acquired it for personal use or consumption in Québec or for use or consumption in Québec by another person with which the person does not deal at arm's length.

In addition, the eligible pyrolysis oil must be delivered by the qualified corporation or on its behalf, and possession must be taken of the oil in Québec.

Monthly ceiling on the production of pyrolysis oil

A qualified corporation's monthly ceiling on the production of pyrolysis oil, for a particular month of a taxation year, is equal to the number of litres obtained by multiplying 273,972 litres by the number of days in the particular month.

Document to attach to the tax credit application

To claim the refundable tax credit for a taxation year, a qualified corporation must attach the form prescribed by Revenu Québec to its income tax return for that year.

In addition, the qualified corporation must provide to Revenu Québec, on request, in respect of its eligible production of pyrolysis oil for each month of a taxation year, a report indicating the name of the person having acquired the eligible pyrolysis oil, the number of litres acquired, the date of the sale, the date on which possession was taken and the address of the place where possession was taken.

Application date

Qualified corporations may claim the refundable tax credit for pyrolysis oil production in Québec for a taxation year that ends after March 31, 2018.

For more information, see pages A.100 to A.104 of Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.

A refundable tax credit for pyrolysis oil production in Québec has been introduced. This refundable tax credit, at a rate of $0.08 per litre, will be granted to a qualified corporation in respect of eligible pyrolysis oil it produces in Québec from residual forest biomass, which is sold in and intended for Québec, up to 100 million litres per year. A qualified corporation will be able to claim this tax credit for a period of five years beginning on April 1, 2018.

Qualified corporation

A qualified corporation is, for a taxation year, a corporation, other than an excluded corporation, that, in the taxation year, has an establishment in Québec where it carries on an eligible pyrolysis oil production business.

Calculating the refundable tax credit

A qualified corporation's refundable tax credit for pyrolysis oil production in Québec, for a taxation year, is equal to the aggregate of the amounts, each of which is determined for a particular month of the taxation year, and will correspond to the product obtained by multiplying, by a rate of $0.08 per litre, the lesser of the number of litres in the qualified corporation's eligible production of pyrolysis oil for the particular month and the number of litres in its monthly ceiling on the production of pyrolysis oil for that month.

Eligible production of pyrolysis oil

A qualified corporation's eligible production of pyrolysis oil, for a particular month in a taxation year, is the number of litres of eligible pyrolysis oil produced in Québec by the corporation after March 31, 2018, but before April 1, 2023, that is sold by the corporation in Québec to a person that takes possession of it in the particular month, but before April 1, 2023, and that is intended for Québec.

Eligible pyrolysis oil

For the purposes of the refundable tax credit, eligible pyrolysis oil is the liquid mixture of oxygenated organic matter obtained from the condensation of vapours resulting from the thermal decomposition of residual forest biomass.

Residual forest biomass is forest biomass resulting from harvesting activities—residual trees (branches and tops), non-commercial tree parts, and twigs and leaves—as well as that resulting from primary or secondary processing, namely, bark, shavings, sawdust and woodchips. It includes non-contaminated, additive-free deconstructed wood, if it is not part of a hierarchical use approach along the lines of 3R-RD (source reduction, reuse, recycling, reclamation and disposal). However, standing trees are excluded.

Pyrolysis oil intended for Québec

Eligible pyrolysis oil is considered to be intended for Québec if it is sold by the qualified corporation to a person and it is reasonable to expect that the person acquired it for personal use or consumption in Québec or for use or consumption in Québec by another person with which the person does not deal at arm's length.

In addition, the eligible pyrolysis oil must be delivered by the qualified corporation or on its behalf, and possession must be taken of the oil in Québec.

Monthly ceiling on the production of pyrolysis oil

A qualified corporation's monthly ceiling on the production of pyrolysis oil, for a particular month of a taxation year, is equal to the number of litres obtained by multiplying 273,972 litres by the number of days in the particular month.

Document to attach to the tax credit application

To claim the refundable tax credit for a taxation year, a qualified corporation must attach the form prescribed by Revenu Québec to its income tax return for that year.

In addition, the qualified corporation must provide to Revenu Québec, on request, in respect of its eligible production of pyrolysis oil for each month of a taxation year, a report indicating the name of the person having acquired the eligible pyrolysis oil, the number of litres acquired, the date of the sale, the date on which possession was taken and the address of the place where possession was taken.

Application date

Qualified corporations may claim the refundable tax credit for pyrolysis oil production in Québec for a taxation year that ends after March 31, 2018.

For more information, see pages A.100 to A.104 of Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.

A refundable tax credit for pyrolysis oil production in Québec has been introduced. This refundable tax credit, at a rate of $0.08 per litre, will be granted to a qualified corporation in respect of eligible pyrolysis oil it produces in Québec from residual forest biomass, which is sold in and intended for Québec, up to 100 million litres per year. A qualified corporation will be able to claim this tax credit for a period of five years beginning on April 1, 2018.

Qualified corporation

A qualified corporation is, for a taxation year, a corporation, other than an excluded corporation, that, in the taxation year, has an establishment in Québec where it carries on an eligible pyrolysis oil production business.

Calculating the refundable tax credit

A qualified corporation's refundable tax credit for pyrolysis oil production in Québec, for a taxation year, is equal to the aggregate of the amounts, each of which is determined for a particular month of the taxation year, and will correspond to the product obtained by multiplying, by a rate of $0.08 per litre, the lesser of the number of litres in the qualified corporation's eligible production of pyrolysis oil for the particular month and the number of litres in its monthly ceiling on the production of pyrolysis oil for that month.

Eligible production of pyrolysis oil

A qualified corporation's eligible production of pyrolysis oil, for a particular month in a taxation year, is the number of litres of eligible pyrolysis oil produced in Québec by the corporation after March 31, 2018, but before April 1, 2023, that is sold by the corporation in Québec to a person that takes possession of it in the particular month, but before April 1, 2023, and that is intended for Québec.

Eligible pyrolysis oil

For the purposes of the refundable tax credit, eligible pyrolysis oil is the liquid mixture of oxygenated organic matter obtained from the condensation of vapours resulting from the thermal decomposition of residual forest biomass.

Residual forest biomass is forest biomass resulting from harvesting activities—residual trees (branches and tops), non-commercial tree parts, and twigs and leaves—as well as that resulting from primary or secondary processing, namely, bark, shavings, sawdust and woodchips. It includes non-contaminated, additive-free deconstructed wood, if it is not part of a hierarchical use approach along the lines of 3R-RD (source reduction, reuse, recycling, reclamation and disposal). However, standing trees are excluded.

Pyrolysis oil intended for Québec

Eligible pyrolysis oil is considered to be intended for Québec if it is sold by the qualified corporation to a person and it is reasonable to expect that the person acquired it for personal use or consumption in Québec or for use or consumption in Québec by another person with which the person does not deal at arm's length.

In addition, the eligible pyrolysis oil must be delivered by the qualified corporation or on its behalf, and possession must be taken of the oil in Québec.

Monthly ceiling on the production of pyrolysis oil

A qualified corporation's monthly ceiling on the production of pyrolysis oil, for a particular month of a taxation year, is equal to the number of litres obtained by multiplying 273,972 litres by the number of days in the particular month.

Document to attach to the tax credit application

To claim the refundable tax credit for a taxation year, a qualified corporation must attach the form prescribed by Revenu Québec to its income tax return for that year.

In addition, the qualified corporation must provide to Revenu Québec, on request, in respect of its eligible production of pyrolysis oil for each month of a taxation year, a report indicating the name of the person having acquired the eligible pyrolysis oil, the number of litres acquired, the date of the sale, the date on which possession was taken and the address of the place where possession was taken.

Application date

Qualified corporations may claim the refundable tax credit for pyrolysis oil production in Québec for a taxation year that ends after March 31, 2018.

For more information, see pages A.100 to A.104 of Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The Act constituting Capital régional et coopératif Desjardins and tax legislation will be amended to create a new class of shares. For a limited time, shareholders who acquire shares in this new class will be able to claim a non-refundable tax credit equal to 10% (maximum $15,000) of the value of shares in the existing class.

Shareholders will be able to acquire shares in the new class of capital stock, provided they:

• convert shares they have held in the existing class for at least seven years;
• have never requested the redemption of shares in the existing or new class; and
• have never purchased shares by agreement.

As part of this change to the capital stock of Capital régional et coopératif Desjardins, amendments will also be made to the fund's constituting act to allow the fund to proceed, on an exceptional basis, with three more annual capitalization periods exceeding its cumulative capitalization limit.

The tax credit rate for shares in the existing class of capital stock of Capital régional et coopératif Desjardins acquired after February 28, 2018, will be reduced from 40% to 35%.

For more information, see pages A.105 through A.114 of the Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The Act constituting Capital régional et coopératif Desjardins and tax legislation will be amended to create a new class of shares. For a limited time, shareholders who acquire shares in this new class will be able to claim a non-refundable tax credit equal to 10% (maximum $15,000) of the value of shares in the existing class.

Shareholders will be able to acquire shares in the new class of capital stock, provided they:

• convert shares they have held in the existing class for at least seven years;
• have never requested the redemption of shares in the existing or new class; and
• have never purchased shares by agreement.

As part of this change to the capital stock of Capital régional et coopératif Desjardins, amendments will also be made to the fund's constituting act to allow the fund to proceed, on an exceptional basis, with three more annual capitalization periods exceeding its cumulative capitalization limit.

The tax credit rate for shares in the existing class of capital stock of Capital régional et coopératif Desjardins acquired after February 28, 2018, will be reduced from 40% to 35%.

For more information, see pages A.105 through A.114 of the Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The Act constituting Capital régional et coopératif Desjardins and tax legislation will be amended to create a new class of shares. For a limited time, shareholders who acquire shares in this new class will be able to claim a non-refundable tax credit equal to 10% (maximum $15,000) of the value of shares in the existing class.

Shareholders will be able to acquire shares in the new class of capital stock, provided they:

• convert shares they have held in the existing class for at least seven years;
• have never requested the redemption of shares in the existing or new class; and
• have never purchased shares by agreement.

As part of this change to the capital stock of Capital régional et coopératif Desjardins, amendments will also be made to the fund's constituting act to allow the fund to proceed, on an exceptional basis, with three more annual capitalization periods exceeding its cumulative capitalization limit.

The tax credit rate for shares in the existing class of capital stock of Capital régional et coopératif Desjardins acquired after February 28, 2018, will be reduced from 40% to 35%.

For more information, see pages A.105 through A.114 of the Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The Act constituting Capital régional et coopératif Desjardins and tax legislation will be amended to create a new class of shares. For a limited time, shareholders who acquire shares in this new class will be able to claim a non-refundable tax credit equal to 10% (maximum $15,000) of the value of shares in the existing class.

Shareholders will be able to acquire shares in the new class of capital stock, provided they:

• convert shares they have held in the existing class for at least seven years;
• have never requested the redemption of shares in the existing or new class; and
• have never purchased shares by agreement.

As part of this change to the capital stock of Capital régional et coopératif Desjardins, amendments will also be made to the fund's constituting act to allow the fund to proceed, on an exceptional basis, with three more annual capitalization periods exceeding its cumulative capitalization limit.

The tax credit rate for shares in the existing class of capital stock of Capital régional et coopératif Desjardins acquired after February 28, 2018, will be reduced from 40% to 35%.

For more information, see pages A.105 through A.114 of the Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The additional capital cost allowance of 35% introduced in March 2017 has been replaced by an additional capital cost allowance of 60%.

Like the 35% one, the additional capital cost allowance of 60% covers a two-year period and applies to manufacturing or processing equipment and general-purpose electronic data processing equipment.

Tax legislation will be amended to allow taxpayers to deduct, in the calculation of their business income for a taxation year, an amount corresponding to the additional capital cost allowance of 60% in respect of qualified property for that taxation year. This additional amount will be granted for the taxation year in which the qualified property is first put to use and the following year.

Qualified property

The additional capital cost allowance of 60% applies in respect of:

• property that is a machine or equipment acquired primarily for use in the manufacturing and processing goods intended for sale or lease (property in Class 53 in Schedule B to the Regulation respecting the Taxation Act); and
• general-purpose electronic data processing equipment and systems software for that equipment (property included in Class 50 in Schedule B to the Regulation respecting the Taxation Act).

The property must be new at the time of its acquisition and be acquired after March 27, 2018, but before April 1, 2020. Moreover, it must be:

• put to use within a reasonable time of its acquisition;
• used by a taxpayer mainly in the course of carrying on a business for a period of 730 consecutive days following the day it is first put to use (except in the case of loss, involuntary destruction by fire, theft or water, or a major breakdown); and
• used mainly in Québec by the taxpayer throughout that period.

Calculating the additional capital cost allowance

The additional capital cost allowance of 60% is calculated according to the same rules as the additional capital cost allowance of 35%.

Special tax

A taxpayer that claims the additional capital cost allowance in respect of qualified property and that does not use the property mainly in the course of carrying on a business for a period of at least 730 consecutive days after the property was first put to use or that does not use the property mainly in Québec during that period may have to pay a special tax.

Additional capital cost allowance of 35%

The additional capital cost allowance of 60% replaces the additional capital cost allowance of 35%, which was eliminated on March 28, 2018.

For more information, see pages A.63 and A.66 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The additional capital cost allowance of 35% introduced in March 2017 has been replaced by an additional capital cost allowance of 60%.

Like the 35% one, the additional capital cost allowance of 60% covers a two-year period and applies to manufacturing or processing equipment and general-purpose electronic data processing equipment.

Tax legislation will be amended to allow taxpayers to deduct, in the calculation of their business income for a taxation year, an amount corresponding to the additional capital cost allowance of 60% in respect of qualified property for that taxation year. This additional amount will be granted for the taxation year in which the qualified property is first put to use and the following year.

Qualified property

The additional capital cost allowance of 60% applies in respect of:

• property that is a machine or equipment acquired primarily for use in the manufacturing and processing goods intended for sale or lease (property in Class 53 in Schedule B to the Regulation respecting the Taxation Act); and
• general-purpose electronic data processing equipment and systems software for that equipment (property included in Class 50 in Schedule B to the Regulation respecting the Taxation Act).

The property must be new at the time of its acquisition and be acquired after March 27, 2018, but before April 1, 2020. Moreover, it must be:

• put to use within a reasonable time of its acquisition;
• used by a taxpayer mainly in the course of carrying on a business for a period of 730 consecutive days following the day it is first put to use (except in the case of loss, involuntary destruction by fire, theft or water, or a major breakdown); and
• used mainly in Québec by the taxpayer throughout that period.

Calculating the additional capital cost allowance

The additional capital cost allowance of 60% is calculated according to the same rules as the additional capital cost allowance of 35%.

Special tax

A taxpayer that claims the additional capital cost allowance in respect of qualified property and that does not use the property mainly in the course of carrying on a business for a period of at least 730 consecutive days after the property was first put to use or that does not use the property mainly in Québec during that period may have to pay a special tax.

Additional capital cost allowance of 35%

The additional capital cost allowance of 60% replaces the additional capital cost allowance of 35%, which was eliminated on March 28, 2018.

For more information, see pages A.63 and A.66 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

Tax legislation will be amended to remove the limit on the amount that can be claimed under the refundable tax credit for film dubbing, which corresponds to 45% of the consideration paid to corporations for the performance of the dubbing contract. This will simplify the application of the tax credit and boost support for dubbing activities carried out in Québec.

The amendment will apply to a qualified film dubbing expenditure of a corporation for a taxation year that begins after March 27, 2018.

For more information, see pages A.85 and A.86 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

Tax legislation will be amended to remove the limit on the amount that can be claimed under the refundable tax credit for film dubbing, which corresponds to 45% of the consideration paid to corporations for the performance of the dubbing contract. This will simplify the application of the tax credit and boost support for dubbing activities carried out in Québec.

The amendment will apply to a qualified film dubbing expenditure of a corporation for a taxation year that begins after March 27, 2018.

For more information, see pages A.85 and A.86 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

To boost the international growth potential of Québec companies carrying out their activities in the production of multimedia events or environments on the international stage, tax legislation will be amended to remove the $350,000 limit on the tax credit.

This amendment applies to qualified productions for which an application for an advance ruling, or an application for a certificate if no application for an advance ruling was previously filed for the production, is submitted to the Société de développement des entreprises culturelles after March 27, 2018.

For more information, see pages A.92 and A.93 Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.