Quebec announces $863-million plan to help businesses impacted by U.S. tariffs

The government of Quebec has launched a program to support businesses affected by recent U.S. tariffs, providing both direct financial support and tax credits to help them maintain operations.

Under the plan, announced August 15, 2018, businesses will benefit until 2020 from a temporary increase in tax credits for investing in manufacturing and processing equipment. In addition to amending what property qualifies for the credit, the government has expanded the reach of the qualifying regions of investment, under certain conditions.

The base rate of the tax credit for such investments has also increased temporarily, to five percent from four percent.

The provincial government also announced all small- to medium-sized businesses – those with payroll equal to or less than $1-million – will be able to immediately reduce their contributions to the Health Services Fund to 1.25 percent from 1.5 percent. The reduction had originally been announced in March and had been scheduled to take place over five years.

The reduced contributions will help businesses to maintain financial liquidity in their operations, including the primary and manufacturing, service and construction sectors as well as for full-time jobs created in the natural and applied sciences sector.

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For more information on how MNP can help, contact your local Business Advisor.