The most striking thing about the March 17, 2011 Québec Budget is what it does not contain. There are no changes to personal or corporate tax rates and a very small number of tax changes of significance. Here is a summary of these new measures.
Personal Tax
- Tax Credit for Experienced Workers
Beginning in 2012, individuals 65 and older will be entitled to a credit on their eligible work income in excess of $5,000. The credit will apply to the excess income to a maximum of $3,000 in 2012, increasing every year to reach $10,000 in 2016.
- Refundable Tax Credit for Informal Caregivers
Relatives who are informal caregivers who house an eligible relative in their homes are currently granted a refundable tax credit of up to $1,075. As of 2011, this credit will be extended to informal caregivers who cohabit with an eligible relative in the latter’s home as well as to certain informal caregivers caring for an elderly spouse at home.
- Green Vehicles Rebate Program
As of January 1, 2012, a person who acquires or leases an electric or hybrid vehicle will qualify for a new purchase or lease rebate program. The rebate will be calculated on the basis of battery capacity and will range from $5,000 to $8,000. The purchase or lease rebate program will replace the existing refundable tax credit for the acquisition or leasing of a new green vehicle.
Corporate Tax
- Refundable Tax Credit for Book Publishing
Effective March 18, 2011, the refundable tax credit for book publishing will also be applicable to certain electronic books. This change will apply to books for which an initial application for an advance ruling or a certificate is filed after the Budget date.
- Refundable Tax Credit for Sound Recording Production
In order to adapt to the reality of the current music market, the refundable tax credit for sound recording production will now also be available for certain downloaded music. This change will apply to a sound recording for which an initial application for an advance ruling or a certificate is filed after the Budget date.
- Refundable Tax Credit for Ethanol
The Budget introduces a new refundable tax credit for eligible cellulosic ethanol production by an eligible corporation that has an establishment in Québec where it carries on an eligible cellulosic ethanol production business. This tax credit may reach up to 15 cents per litre of eligible cellulosic ethanol produced after March 17, 2011 and before April 1, 2018. It will apply in addition to the existing refundable tax credit for ethanol production.
- Tax-Advantaged Funds
The Relève Québec fund will be created in order to facilitate business transfers to new generations of entrepreneurs. This fund of $50 million will take the form of a limited partnership and will be capitalized 40% by the Québec government and 60% by the Fonds de solidarité FTQ, Fondaction and Capital régional et coopératif Desjardins.
Commodity Taxes
- Tobacco Tax
In order to be better aligned with the increase in the Québec Sales Tax to 9.5% as of January 1, 2012, the tobacco tax will be increased for cigarettes and all other tobacco products.
Other Measures
- University Tuition Increases
Québec university tuition fees will be increased $325 per year as of the fall of 2012, through to the 2016-2017 school year. At the same time, Québec will increase support for students through its student financial assistance program.
- Québec Pension Plan Contributions
Québec will raise contribution rates to the Québec Pension Plan from 9.9% to 10.80% over six years, starting in 2012. This translates into an increase of 0.15% per year for each of the six years.
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Rédigé par : cuit vapeur seb | 23/05/2012 à 21:15
Merci pour cet article intéréssant, un tonerre d'applaudissement pour ton blog
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Rédigé par : mutuelles | 18/10/2011 à 10:59