On 25 March 2025, the Quebec government tabled the 2025-2026
Budget (Budget). The Budget proposes significant changes to the
public utilities tax or taxe sur les services
publics (TSP) regime that could have a major
implications on businesses operating in the electricity,
telecommunications1 and gas distribution
sectors.
Current Rules
The TSP was introduced in the 2004-2005 budget as an exception
to the municipal property tax for immovables which form part of a
telecommunications system, a gas distribution system, or an
electric power production, transmission or distribution system.
Administered by Revenu Québec, the TSP is calculated on
the basis of the net value of certain immovable assets (NVA)
forming part of the operator's system as shown in its financial
statements. It is payable by the operator itself. For example, in
the case of an electricity generation project held through a
limited partnership, it would be the limited partnership and not
its
