Québec Government Postpones by Three Years Application of New Rule Limiting Eligibility for Labour Fund Tax Credit

Montréal, March 1, 2024 - The Québec government today announced a three-year postponement of the rule limiting eligibility for the labour fund tax credit. The proposed limit will therefore not take effect until the 2027 tax year.

“This measure will enable all workers to continue benefitting from tax credits for their contributions to the Fonds de solidarité FTQ. It will also enable the Fonds to increase its investments to support socio-economic development in Québec, particularly, by investing millions of dollars more this year in housing construction. I’m proud of the role the Fonds has played for 40 years in moving Québec forward, in keeping with our values and roots,” said Janie C. Béïque, President and CEO of the Fonds de solidarité FTQ.

Amendment to the simplified prospectus

The acquisition of shares of the Fonds de solidarité FTQ may give rise to labour-sponsored fund tax credits. The tax credits amount to 30%, namely 15% at the Québec level and 15% at the federal level, and are limited to $1,500 per fiscal year, which represents a $5,000 purchase of shares of the Fonds de solidarité FTQ. On March 1, 2024, The Government of Québec announced in Information Bulletin 2024-3 that tax legislation would be amended to postpone by three years the rule providing that the tax credit would be available only to individuals whose taxable income for a given taxation year was below the highest tax rate.

About the Fonds de solidarité FTQ

The Fonds de solidarité FTQ is a source of pride in Québec, fulfilling its mission through a unique business model created 40 years ago. Since then, the Fonds has rallied Québec into action thanks to the retirement savings of 769,459 shareholders.

With net assets of $18.9 billion as at November 30, 2023, the Fonds supports more than 3,700 companies through venture and development capital investments based on the belief that impact is created as much by financial as societal returns. For more information, visit fondsftq.com or our company page on LinkedIn .

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