With its two strong men from the business world, ex-entrepreneur Pierre Fitzgibbon, Minister of Economy and Innovation, and ex-banker Eric Girard, Minister of Finance, the government of François Legault does not skimp on financial support for companies.
Through Quebec’s corporate tax system alone, the CAQ government will provide a total of $8.4 billion by 2022 to businesses taxed in Quebec.
That is two billion dollars more than in 2018 under the former liberal regime of Phillippe Couillard. Add to this billions in loans and capital injections from Investissement Québec and the Economic Development Fund.
Tax assistance for companies established in Québec consists of two parts:
- Tax Rebates and Incentives
- Special measures
CREDITS and INCENTIVES
In terms of tax breaks and tax incentives, the Legault government will provide businesses with $5.75 billion in financial aid this year, nearly $1.6 billion more than in 2018 under
It is therefore, under this four-year CAQ rule, an increase in tax relief of approximately 38% for companies doing business in Quebec.
To “value” this increase in corporate tax assistance at fair value, it should be noted that companies, meanwhile, have seen their tax bill rise by only 18.9% over the same four years.
This means that corporate tax support under the Legault government is twice as high as corporate tax revenue.
This $5.75 billion tax relief breaks down as follows:
- Reduced Rates, Waivers, Exemptions: $2.35 Billion
- Deductions: $141 million
- Reimbursable Tax Credits: $2.8 Billion
- Tax Deferral: $449 million
In addition to the generous $5.75 billion tax relief in 2022, companies will benefit from tax cuts totaling $2.63 billion, or $430 million more than in 2018 under the former Couillard regime.
This includes the reduction in the contribution to the Health Services Fund for SMBs ($1.74 billion), the loss carry-forward other than capital losses ($690 million), the deduction for representation ($68 million), the deduction of cash dividends ($62 million).
Of all the Liberal and PQ governments that have previously succeeded at the head of Quebec’s government, we have never seen a government as “pro” business as the current CAQ government of François Legault, himself an ex-entrepreneur before making the leap into politics under the banner of PQ.
This also explains why the Legault-Fitzgibbon-Girard economic trio is so popular with Quebec business.
We will not hide it: the generous financial support programs for companies (loans, grants, capital investments) launched by Minister Pierre Fitzgibbon of Economy are very well received in the business community.
Several of these programs have even enabled many entrepreneurs to save their skin when certain economic sectors were paralyzed by the COVID-19 pandemic.
The Legault government invests massively in companies through Investissement Québec (IQ) and the Economic Development Fund (FDE).
In fiscal year 2020-21, total funding from IQ and EDF reached $4.5 billion. This is $1.6 billion more than in 2018-19 under the former Liberal regime, or 55.2%.
We have to believe that the CAQ government believes this is not enough, as it has just tripled Investissement Québec’s borrowing capacity, from 1.56 to 4.$87 billion, an increase of $3.3 billion by the end of March 2025.
In order to ensure that the Legault government’s financial support to companies is properly invested, I hope that Auditor General Guylaine Leclerc will be able to carry out the required checks.