As part of the March 21, 2023 budget, the Quebec government had announced a measure to limit eligibility for the labour-sponsored funds tax credit. This measure targeted individuals who acquire shares in a labour-sponsored fund (Fonds de solidarité F.T.Q. or Fondaction) and who have taxable income subject to the highest tax rate ($119,910 in 2023), so that they can no longer benefit from the tax credit.
Postponement to January 1, 2027
This measure was to apply to tax credit claims for taxation years after 2023. However, in its information bulletin of March 1, 2024, the Ministère des Finances du Québec announced that implementation of this measure has been postponed to January 1, 2027. For 2027, eligibility for the tax credit will be based on taxable income for 2025 (reference year).
An article from the tax team
To continue reading :
