Quebec 2016 Budget

On March 17, 2016, Quebec released its provincial budget. The budget contained several measures designed to increase the benefit to Quebec resident donors from charitable donations and to facilitate the operations of resident donors in Quebec.

Improving the Tax Treatment of Donations

Prior to the Quebec 2016 Budget, save for a few exceptions, the tax credit available for donations made by an individual could only be used against 75% of the individual's annual income. Any amount of excess donation tax credit could be carried forward for the 5 years following the year in which the donation was made.

According to Revenu Québec's statistics, less than one-third of 1% of Quebec donors exceed the annual 75% limit. Given that the 75% limit is rarely applied and the many exceptions to the limit, the calculation of the tax credit for charitable donations was needlessly complicated. Therefore, the Government of Quebec has proposed to abolish the income limit for the