Tax Insights: 2026-2027 Québec budget: Tax highlights

Issue 2026-10

In brief

On March 18, 2026, Minister of Finance Eric Girard tabled the Québec government’s budget for 2026‑2027. Here are the highlights of the budget’s main tax measures.

In detail

Business tax measures

Amendments to the refundable tax credit to support print media

Print media corporations have benefited from a refundable tax credit to support print media since October 2, 2019. This credit applies to corporations that hold a business certificate issued by Investissement Québec certifying that the corporation has produced and disseminated a print media that is recognized as eligible media. Excluded corporations—those that are exempt from tax or that hold a licence to carry on a broadcasting undertaking—are not eligible for the credit. This refundable tax credit is at the rate of 35% on qualified wages incurred by qualified corporations. The qualified wages of an eligible employee are subject to an annual limit of $75,000, allowing a maximum annual amount of $26,250 per eligible employee.

The news agency industry and news media broadcasting news programs on radio or television are now facing challenges similar to those faced by the print media sector. To better support the production and dissemination of quality information of public interest throughout Québec and to offer similar tax benefits, the following changes will be made:

• expanding the eligibility criteria for the refundable tax credit to include news agencies and news media broadcasting news programs on radio and television;
• increasing the annual limit applicable to the qualified wages of an eligible employee to $85,000;
• removing the carrying out of information technology activities from eligible activities for the purposes of the employee certificate.

To expand the eligibility criteria, the definition of an excluded corporation no longer refers to corporations that hold a licence to carry on a broadcasting undertaking. To obtain a business certificate, corporations may henceforth either produce original information content as an eligible news agency or produce an information media recognized as eligible media. Examples of original information content include a news report, profile or editorial.

As regards the amendments to the eligibility criteria for the employee certificate, the Act initially identified eligible employees as individuals working full-time and at least 75% of their duties consist in undertaking or supervising certain eligible activities such as the production of original information content intended for publication in a print media. Production and presentation activities will now be replaced by activities involving the production and presentation of original information content for an eligible media or for an eligible press agency to include information media and press agencies.

Lastly, for the calculation of the refundable tax credit, the current annual limit of $75,000 per eligible employee will increase to $85,000 per eligible employee. The refundable tax credit may therefore reach an annual amount of $29,750 per eligible employee. To qualify, at least 75% of the duties of eligible employees must consist in undertaking or directly supervising certain eligible activities. In addition, the amendment to the tax credit provides for the removal of the carrying out of information technology activities related to the production or dissemination of content as eligible activities.

Extension and phase-out of the refundable tax credit for the digital transformation of print media

A qualified corporation that incurs digital conversion costs may benefit from a 35% refundable tax credit. A corporation may benefit from tax assistance of up to a maximum of $7 million. To be qualified, a corporation must carry on a business in Québec and have an establishment there. The corporation must also hold a qualified certificate issued by Investissement Québec certifying that it has produced and disseminated on a daily or periodic basis a print or digital information media including original written information content intended specifically for the Québec public, pertaining to general interest news and covering at least three eligible themes such as politics, business and the economy, and culture or municipal affairs. The newsroom of the eligible media must also be situated in Québec.

Activities eligible for the tax credit include eligible digital conversion activities for an eligible media, that is, activities relating to the development of information systems or the integration of technology infrastructure that is directly linked to the initiation or continuation of the eligible media’s digital conversion.

This eligibility period for the refundable tax credit started on March 28, 2018, and ended on December 31, 2025. Only qualified expenditures and qualified wages incurred before January 1, 2026, are eligible for the tax credit. If the expenditure was for the acquisition of a qualified property, it must have been acquired before January 1, 2025.

In order to give print media businesses a transition period to complete their digital transformation projects, the refundable tax credit will be extended by three years while gradually reducing the applicable rates.

The amendments extend the eligibility period for acquisition of a qualified property to before January 1, 2028.

Adjustments made to tax credits for the development of e-business integrating artificial intelligence functionalities

For a qualified corporation whose taxation year begins in 2026, the Québec tax assistance intended for the development of e-business integrating AI comprises a 22% refundable tax credit and an 8% non‑refundable tax credit (hereinafter the “TCEB^AI”). However, these rates are reduced by half when at least 50% of the qualified corporation’s gross revenue comes from certain activities attributable to intercompany outsourcing services. These tax credits target specialized information technology companies that carry out e-business activities that integrate AI functionalities. Briefly, the TCEB^AI is calculated on an amount corresponding to the amount by which the qualified wages incurred and paid by the qualified corporation in the year for an eligible employee exceed the applicable exclusion threshold.

Applicable TCEB^AI rates
(per cent)

To provide greater predictability to companies that will benefit from the TCEB^AI, the following adjustments will be made:

• relaxing certain criteria relating to eligible activities to clarify that certain preparatory work is eligible for the purposes of the TCEB^AI;
• relaxing the conditions relating to the carry-forward of the unused balance of the non-refundable tax credit;
• clarifying the rate reduction for companies that carry out intercompany outsourcing.

Briefly, the Sectoral Act will be amended so that specialized AI consulting services will be added to the list of eligible activities. It will therefore no longer be necessary for a specialized AI consulting activity carried out by a company to relate to the development or integration of information systems or technological infrastructure, or to the development of security identification services. The tax legislation will also be amended so that, where it is reasonable to consider that preparatory work is carried out within 12 months prior to the start of a mandate, such work will constitute an activity primarily related to e-business integrating AI functionalities.

In addition, so as not to unduly disadvantage companies with a non-refundable tax credit balance and which does not comply with the new TCEB^AI parameters, the tax legislation will be amended so that the condition whereby the carry-over can only be made against a taxation year for which the corporation obtains the refundable tax credit will be removed.

Lastly, the Sectoral Act will be amended to specify that, when calculating the proportion of gross revenue for the purpose of applying the rate reduction, all revenue from services provided by a corporation to an ultimate beneficiary outside Québec with whom the corporation is not dealing at arm’s length must be taken into account, including support or maintenance revenue.

Amendments to the refundable tax credit for Québec film or television productions

Corporations that incur labour expenditures in respect of a property that is a Québec film production currently benefit from a refundable tax credit of 32% but can reach 40% for certain French-language productions.

In order to better reflect the current reality of the industry, changes will be made to:

• add funding from the Indigenous Screen Office to the list of excluded assistance amounts for the purposes of the tax credit;
• modify the eligibility criteria regarding the length and number of episodes for certain eligible classes of films.

Therefore, the tax legislation will be amended so that the amount of labour expenditures, which usually must be reduced by the amount of any government assistance and non-government assistance, excludes financial assistance granted by the Indigenous Screen Office.

In addition, the Act respecting the sectoral parameters of certain fiscal measures will be amended so that documentaries and audiovisual magazine programs are no longer subject to requirements regarding program length or number of episodes to constitute eligible classes of films for the purposes of the tax credit.

Consequential amendments will be made to the refundable tax credit for film dubbing and the tax credit for film production services.

These changes will apply to a production for which an application for an advance ruling or an application for a certificate is filed with SODEC after the day of the budget speech.

Personal tax measures

Introduction of an automated income tax return filing process on behalf of certain low-income individuals

To provide Quebecers with the tax assistance to which they may be entitled, Revenu Québec may file income tax returns on behalf of certain low-income individuals whom it may select based on certain criteria. An eligible individual must reside in Québec at the end of December 31 of the taxation year and must not have filed an income tax return for the taxation year. Revenu Québec must have provided the individual with all the information relating to their tax return and the individual must have had a reasonable period of time to review that information. A notice of assessment will then be issued for that year. This measure will apply as of the 2026 taxation year.

Other tax measures

Adjustments to certain disclosure mechanisms

Introduced in 2009 and amended a few times since, the mandatory disclosure mechanism for certain transactions through an information return allows tax authorities to quickly identify certain behaviours for which the risk of non-compliance with the purpose and spirit of the tax legislation was deemed to be high.

Given the significant increase in the number of information returns submitted and the desire to eventually make it possible for these returns to be sent electronically, as well as to enable tax authorities to analyze them thoroughly, certain adjustments will be made, such as removing the reference to the method of transmission of information returns and to the proof of receipt of information returns, and removing the presumption regarding the 120-day period granted to tax authorities to request additional information concerning an information return.

Harmonization with immediate expensing for greenhouse buildings

To increase supply and investment in food production in the medium term, Québec’s tax legislation and regulations will be amended to include an immediate expensing measure for greenhouse buildings. This measure, tabled by the federal government, allows producers to fully write off the total cost of greenhouses acquired on or after November 4, 2025, and that become available for use before 2030. The amendments to the Québec tax system will be adopted only after the assent of any federal legislation or the adoption of any federal regulation giving effect to this measure, taking into account the technical amendments that may be made prior to the assent or adoption.