New legislation in Quebec for 2023 tax credits: what not to miss

The new 2023C2F law, implemented on March 15, 2023, brings significant changes to taxation in Quebec. These changes, announced in the March 22, 2022 budget speech, are designed to make life easier for citizens by taking into account the rising cost of living.

More flexible tax credits

The law introduces changes to make certain tax credits more flexible. For example, it makes the tax credit for experienced workers and for small and medium-sized businesses employing people with severe employment constraints more flexible. This means that more people will be able to benefit from these tax credits, which could mean more money in their pockets at the end of the year.

1. 1. Cost-of-living tax credit: This law provides a refundable tax credit to help offset the rising cost of living. For example, if you are a Quebec resident and you notice a significant increase in your living expenses, you may be eligible for this tax credit (p.3).

1. 1. Tax credit for job retention for experienced workers: This law makes the refundable tax credit more flexible to encourage job retention for experienced workers. If you are an older worker in Quebec, you could benefit from this tax credit to continue working (p.3).

1. 1. Tax credit for septic system repairs: This law extends the refundable tax credit for septic system repairs. If you own a home in Quebec and need to renovate your septic system, you may be eligible for this tax credit (p.3).

1. 1. Tax credit for biofuel production: This law introduces a refundable tax credit for the production of biofuel in Quebec. If you are a company producing biofuels, you could benefit from this tax credit (p.3).

1. 1. Deduction for individuals living in a remote region: This law modifies the rules concerning the deduction for individuals living in a remote region. If you live in a remote region of Quebec, you may be eligible for a larger tax deduction (p.4).

1. 1. Sales tax rebate for new homes: This law modifies the eligibility conditions for the Quebec sales tax rebate for new homes. If you buy a new home in Quebec, you may be eligible for a sales tax refund (p.4).

Support for culture and the environment

The law also makes the tax credit for major cultural donations permanent. This could encourage more people to donate to cultural institutions, helping to support arts and culture in Quebec.

In addition, the law extends the tax credit for septic system repairs, which could help homeowners cover the cost of this work. It also introduces a new tax credit for the production of biofuel in Quebec, which could encourage the production of cleaner energies.

Help for First Nations

The Act also provides for the establishment of a financial compensation program to help cover the costs associated with administering the tax exemption for First Nations members in respect of fuel tax and alcoholic beverage tax.

Conclusion

All in all, Bill 2023C2F brings important changes that could have a positive impact on the lives of many Quebecers. Whether by making tax credits more accessible, supporting culture and the environment, or helping members of the First Nations, this law aims to make the tax system fairer and more adapted to today’s challenges.

Source

For more information, you can consult the full text of the law here.