Postponing of the application of rule limiting eligibility for non-refundable tax credit for labour-sponsored funds

MONTRÉAL, March 1, 2024 /CNW/ - The government of Québec has issued today an Information Bulletin announcing a three-year postponement of the rule limiting access to the non-refundable tax credit for labour-sponsored funds.

As part of the Budget Speech 2023-2024, the government announced the introduction of a rule to limit eligibility for the non-refundable labour-sponsored funds tax credit. As a result, individuals whose income was more than $112,655 could no longer benefit from the labor-sponsored funds non-refundable tax credit. This measure was to apply to a claim for the non-refundable tax credit for a taxation year after the 2023 taxation year. Application of this measure will be deferred until January 1, 2027 for shares to be acquired after December 31, 2026.

Fondaction will thus be in a position to attract more capital to increase its investments and contribute to the positive transformation of the economy of Québec.

About Fondaction

A forerunner for over 25 years, Fondaction is the investment fund for individuals and companies that are mobilizing for the positive transformation of Quebec's economy, making it more equitable, inclusive, green and successful. As a labour-sponsored fund, Fondaction represents tens of thousands of savers and hundreds of companies committed to helping Quebec progress. It manages more than $3.50B in net assets, as at November 30, 2023, invested in hundreds of businesses and on the financial markets, prioritizing investments that generate positive economic, social and environmental spinoffs in addition to a financial return. Fondaction helps maintain and create jobs, reduce inequalities and combat climate change. For more information, visit fondaction.com or our LinkedIn page.

SOURCE Fondaction

Marie-Hélène Lafond, Chief, Dialogue, Public Affairs and External Communications [email protected]