Quebec’s 2026-2027 Budget | What you need to know

Context

This is the current administration’s final budget before the elections les élections schedules for fall 2026. In his speech, the Minister of Finance emphasizes the decline in the debt-to-GDP ratio since 2019, as well as the reduction in the wealth gap between Quebec and the other Canadian provinces. These results are presented against a backdrop of persistent international instability—the COVID-19 pandemic, geopolitical tensions, and rising protectionism—which has placed significant pressure on Quebec’s public finances.

Objectives

Quebec’s 2026-2027 Budget is primarily intended to:

• Accelerating business adaptation and Quebec’s economic transformation
• Strategically investing in infrastructure to stimulate the economy
• Prioritize funding for the government’s key initiatives
• Take targeted actions to support the priorities of Quebecers and their communities

The Department of Finance reiterates its goal of returning to a balanced budget by 2029–2030.

• Support businesses in adapting by promoting investment projects in growth sectors and enhancing Quebec’s economic competitiveness through innovation
• Support the growth and sustainability of the culture sector
• Supporting small and medium-sized enterprises across all regions, while accelerating the growth of the tourism sector and supporting businesses and the forestry community

• Improve access to health care and social services while providing greater support to family caregivers and seniors in residential care facilities
• Supporting educational success while addressing the need for school facilities as well as workforce and training needs within the education system
• Reinforcing the safety of Quebecers and access to justice services

• Helping families cope with the cost of living through various measures
• Supporting access to affordable housing
• Strengthening services for vulnerable individuals
• Step up efforts to address homelessness and mental health challenges
• Combating domestic and sexual violence
• Strengthening communities and supporting the fight against climate change

Important measures

Tax Credit for the Development of E-Businesses Incorporating Artificial Intelligence Features (“CDAE-ia”)

What you need to know

Eligible new activities:

• Expansion of Specialized AI Consulting Services
• Preliminary work carried out within the 12 months preceding the start of an eligible term or project

CDAE credit balance to be carried forward:
A corporation that has a non-refundable tax credit balance (CDAE) at the end of its tax year—which began before January 1, 2026—may carry forward the credit to the following 20 years, even if it is not eligible for the new CDAE ia.

Intercompany outsourcing — clarification on the application of the reduced tax credit rate:
The reduced tax rate will apply when at least 50% of the corporation’s gross income is derived from services provided to a beneficial owner located outside Quebec, namely an individual or a partnership that is not dealing at arm’s length with the corporation.

Expected impacts

• The expansion of eligible activities, which is expected to increase the tax credit for eligible corporations
• Recovery of unused non-refundable tax credits for a company that filed claims under the old rules, even if it does not meet the criteria of the new CDAE ia
• The reduction in tax incentives granted to companies engaged in intercompany outsourcing

Refundable tax credit for Quebec film and television productions

What you need to know

Removal of criteria regarding duration and number of episodes for:

• documentaries
• magazine-style audiovisual programs, which are specifically designed and formatted for television or online streaming

Expected impacts

• Increase the number of productions eligible for tax credits
• Encourage the creation of content that better resonates with younger generations

What you need to know

Addition of funding from the Indigenous Screen Office to the list of assistance amounts excluded for the purposes of the tax credit.

Expected impacts

Promote the inclusion of Indigenous narratives in Quebec productions.

→ We have compiled a list of the measures most likely to have a tangible impact on the media industry. Read everything here.

Mandatory and preventive disclosure mechanisms

What you need to know

• Removal of the requirement that information returns be sent to the Minister in a separate envelope by certified mail
• Removal of the requirement for the Secretary to confirm receipt of information returns
• Removal of the 120-day presumption of compliance for disclosure

Expected impacts

• An electronic process for submitting information returns to be implemented soon
• A more in-depth analysis of the disclosures
• Longer processing and approval times for disclosures

Voluntary Retirement Savings Plan (VRSP)

What you need to know

• A minimum contribution rate of 2% of salary will be introduced for employees
• An option for the employer to contribute at least 2% of employees’ wages
• The administration of contributions will be simplified
• New investment options with employer contributions will be introduced

Expected impacts

Encourage Quebec workers to save.

Immediate expensing for greenhouses

What you need to know

The cost of the greenhouses purchased may be fully deducted.

Expected impacts

Promote investment and competitiveness in the bio-food sector.

Automated process for filing a tax return

What you need to know

Revenu Québec will be able to generate an automated tax return for certain selected individuals.

Expected impacts

Will increase the tax assistance available to low-income individuals.