Summary#
Bill No. 6 of Quebec implements several tax measures announced in the budget of March 25, 2025, and in bulletins from the Ministry of Finance.
The main measures are as follows:
- Bereaved Families: continuation of the Family Allowance for 12 months following the death of a child, under certain conditions. Rules also provide for the possible transfer of support to the other parent or spouse.
- Individuals: modification or abolition of several tax credits and deductions, notably those related to public transportation, certain studies, cultural donations, and certain personal expenses.
- Training: creation of new credits for certain tuition fees and for financial aid used to pay for basic training costs for adults. Eligible institutions will be subject to a recognition process.
- Clergy and Religious Orders: creation, starting in 2026, of a tax credit for certain residence expenses related to a religious charge.
- Research and Innovation: replacement of several credits with a new credit for scientific research, experimental development, and pre-commercialization. The general rate is 20%, with a 10% enhancement on a limited portion of eligible expenses.
- Natural Resources: revision of the tax credit related to resources. A cumulative cap of $100 million over four years is provided. Certain additional deductions related to flow-through shares are abolished.
- Desjardins Regional and Cooperative Capital: creation of Class C shares. They entitle holders to a new tax credit of up to $1,250, subject to purchase, holding, and redemption rules.
- E-business and Artificial Intelligence: modernization of tax credits. Rates will be gradually modified starting in 2026 and will depend, among other things, on the share of activities related to artificial intelligence.
- Tobacco and Fuels: prohibition for retailers to transfer bulk tobacco, with a minimum penalty of $1,000. The tax refund on biodiesel is abolished for purchases made after March 25, 2025.
- Taxes and Tax Administration: adjustments to the public service tax, contribution deadlines, and certain federal tax rules applied in Quebec.
The bill modifies numerous tax laws. Several changes apply retroactively or on specific dates, notably March 25 and 26, 2025, January 1, 2026, and July 1, 2025.
What This Means for You#
- If you are a parent and a child dies after June 30, 2025, you may continue to receive the Family Allowance for a maximum period of 12 months. You will need to meet certain conditions and, in many cases, notify Retraite Québec.
- If you purchase Class C shares of Desjardins Regional and Cooperative Capital, you may claim a tax credit of 25%, up to $1,250. A cumulative cap of $45,000 applies to the targeted share purchases.
- If you hold these shares or Class A shares, a redemption before seven years may incur a special tax.
- If you operate a business that invests in research, development, or pre-commercialization, the eligibility and calculation rules for the credit will change. Expenses must generally be incurred in Quebec and be well documented.
- Mining companies may benefit from special rates for certain expenses related to critical and strategic minerals, but they must adhere to the cap on eligible expenses.
- Technology and artificial intelligence companies will need to verify if their activities and employees fit the new eligible categories.
- Tobacco retailers will no longer be able to transfer bulk tobacco. A violation may result in a significant penalty.
- If you use biodiesel, the previously available tax refund will no longer be available for purchases made after March 25, 2025.
- Taxpayers using certain credits or deductions that have been eliminated will need to review their tax returns starting in 2026.
Costs#
The bill does not provide for a one-time cost. It groups measures that reduce certain tax expenditures and create or enhance others.
Costs or savings for the government may arise from:
- the temporary maintenance of the Family Allowance after the death of a child;
- the new credit for research, development, and pre-commercialization;
- credits related to shares of Desjardins Regional and Cooperative Capital;
- credits for the training and housing of certain clergy members;
- the abolition or reduction of several credits and deductions;
- the revision of credits for resources, e-business, and artificial intelligence.
No publicly available information. The provided documents do not specify the total budgetary cost of the bill or its financial impact for each measure.
Supporters' Viewpoint#
Supporters may argue that the bill:
- helps families experiencing the death of a child during a difficult financial and personal period;
- encourages research, innovation, and the marketing of new products in Quebec;
- supports certain sectors deemed strategic, such as critical minerals and artificial intelligence;
- simplifies certain tax programs by replacing several credits with new common rules;
- improves control over bulk tobacco and reduces opportunities for tax evasion;
- modernizes tax rules to adapt to federal changes and new economic realities.
Opponents' Viewpoint#
Opponents may argue that the bill:
- is very broad and difficult to understand for individuals and small businesses;
- reduces or abolishes several credits and deductions, which may increase taxes for some taxpayers;
- imposes new administrative procedures and documentation obligations;
- tightens rules regarding flow-through shares and credits for resources, which could reduce investment in certain projects;
- changes credits for technology companies, with sometimes less favorable rates depending on activities;
- transfers part of the financial risk to companies claiming credits for research or pre-commercialization;
- could create uncertainty due to the large number of retroactive measures and different application dates.