In the province of Quebec, where the recently elected Liberal government presented its first budget, strong austerity measures were put in place. The budget featured cuts across the board to provincial level tax credits with almost all being reduced by 20%. The tax credit for wages paid to R&D staff reduces from 37.5% to 30% (for qualifying CCPCs) and from 17.5% to 14% (for other corps). This would reduce the maximum total refund (federal and provincial) for salary paid (for a qualifying CCPC) from 78.6% to 73.8%. Despite the cuts, this would still leave Quebec as the most generous province in terms of refunds for R&D tax credits.
How R&D Partners Can Help
If you have questions or comments about these tax credits, please do not hesitate to contact Sahar Ansary at 1-800-500-7733 for more information.