Quebec Finance Minister Éric Girard’s sixth budget arrives in a very different economic context than his previous five. While in 2023-2024 the government was setting out measures to help individuals deal with rampant inflation, this year it is more concerned about its own financial health. 

In fact, Minister Girard is proposing to push the goal of a balanced budget back by two years: in the budget tabled in March 2023, he aimed to achieve a zero deficit by 2027-2028; now he’s looking at fiscal 2029-2030. In the meantime, the government is expecting deficits that run from close to $11 billion for the next budget year to about four billion in 2028-2029. 

What does this situation mean for your own pocketbook? Here are the eight key items to take away from the Girard budget, from a personal finance perspective. 

1. Few new tax measures this year  
   Unlike last year, when Quebec taxpayers were offered up to $800 a year in tax reductions, the 2024-2025 budget contains few broad measures that directly affect taxes or tax credits for individuals. This budget focuses more on initiatives that are broadly economic – such as spending on health and education – rather than new tax measures. Although a review of tax expenditures related to the personal and corporate income tax systems, as well as consumer taxes, has been announced, this review won’t begin until the spring of 2024.  

2. Health is a priority…  
   If you work in health care, you will no doubt be interested to see that an additional amount of $3.9 billion is being provided to, in the Minister’s words, “support a humane and effective organization of health care and social services.” Of this amount, $1.8 billion is for improving access to care and services and increasing hospital fluidity, and $1.1 billion over five years is for ensuring the continuity and quality of home care and services for seniors, strengthening the offering of private seniors’ residences (RPAs), supporting the creation of seniors’ homes, and continuing funding for residential and long-term care centres (CHSLDs). 

3. …as is education 
   For those of you who work in education, under the new budget your sector will be receiving an injection of close to a billion dollars over six years. This amount will be used in particular to attract and retain school staff, to support partner organizations and to accelerate maintenance of the school building inventory. A portion of this investment – $421 million between now and 2029 – will also be used to promote the success and retention of university students. 

4. Bye-bye Roulez Vert 
   If you’re planning to buy an electric vehicle and are counting on the Roulez Vert program for a rebate, don’t wait too long. As of next January 1, the government will start phasing out this program. For a new, fully electric vehicle, the rebate, which is $7,000 in 2024, will be reduced to $4,000 in 2025, then to $2,000 in 2026, before being eliminated in 2027. Are you thinking of a new plug-in hybrid instead? The rebate is currently $5,000, but will drop to $2,000 in 2025, then to $1,000 in 2026, before being eliminated in 2027. Finally, for a used electric vehicle, the rebate of $3,500 this year will drop to $2,000 next year and $1,000 in 2026, before disappearing like the others. However, the rebate for charging stations will stay at its current level of $600, at least until 2027. 

5. Improved support for retired people with disabilities  
   Until now, when people eligible for a disability pension reached retirement, they faced a hard reality: they could apply for benefits from the Quebec Pension Plan at age 60, but when they turned 65 they were no longer eligible for their disability benefits. The budget includes a measure to eliminate, as of January 1, 2025, this retirement pension reduction for people with disabilities. For the 77,000 people affected, this could result in income of up to $3,930 per year. Added to another benefit improvement announced in the 2021-2022 budget, it could mean additional annual income of $5,895 compared to three years ago. 

6. Changes to programs for disabled children   
   Some changes have also been made to two tax credits for parents of disabled children: the Supplement for Handicapped Children (SHC) and the Supplement for Handicapped Children Requiring Exceptional Care (SHCREC). If this applies to you, you may wish to refer to the Budget Plan section on this topic. 

7. Close to half a billion dollars for companies  
   If you’re an entrepreneur, you might want to note that the budget provides for investments of $443 million in companies, notably to support entrepreneurship and acquisition entrepreneurship (i.e., the transfer of business ownership). A significant portion of this amount, i.e., $125 million, is earmarked to grow the available labour pool. However, in the same breath, the government has announced the abolition of the tax credit to foster the retention of experienced workers. This credit, which could provide as much as $1,875 in assistance per worker, was intended to promote the inclusion in the labour market of workers aged 60 or over. In the context of a labour shortage, the government has decided that this incentive for businesses is no longer needed. On the other hand, employees themselves still have an incentive to remain employed, in the form of the tax credit for career extension, which can amount to a maximum of $1,540, depending on eligible income. 
    
   As well, the budget provides $15 million over three years to promote the integration of emerging technologies, such as artificial intelligence and quantum computing, in Quebec organizations.  

8. Strengthening tax audit measures  
   To conclude this overview, wealthy individuals and entrepreneurs will likely wish to make note of the government’s intention to tighten its rules on so-called “aggressive” tax planning and tax loopholes. In particular, measures are planned to restrict income sprinkling arrangements and to prohibit the issue of subscription warrants or stock options in bearer form. Are you concerned about this? It might be time to consult your tax professional.

Clearly this is just a quick overview of the 2024-2025 budget tabled by the Quebec government. To find out more, go here to read the full documentation released by the Ministère des Finances. 

Feel free to reach out to your advisor, too, who can help you assess the impact of various budget measures on your own situation and advise you on all other financial matters.