Today in Québec City, Finance Minister Eric Girard tabled the 2024 Québec Budget. The CAQ government’s budget includes a record $11 billion deficit due to investments in social services, but they are keeping their eye on the ball for the long-term with a focus on productivity and growth.

Here’s how this budget could impact high-growth companies in the tech sector:

This budget makes important tax changes that should be of benefit to Québec’s most innovative companies.
CCI is pleased to see harmonization of the e-business and multimedia production tax credits and the abolition of the salary cap – this shifts the emphasis of tax support in Québec to more impactful activities and more dynamic firms, while saving the government money overall.
The government is also building on the existing innovation zones with a new commitment to industrial labs to tackle common technical challenges through applied research.
While Law 14 presents challenges for many innovators, a $320 million investment in helping companies adjust to new French language requirements is very welcome.
CCI is pleased to see continued investment into Québec’s talent pipeline to support innovators’ needs. The government has committed $420.5 million over five years to promote the success and retention of university students, support training in priority fields and digital transformation and increase the number of student housing units.
Québec innovators are keenly aware of the economic challenges facing the government and are eager to help the government make the right decisions to ensure Québec is a competitive and attractive place to build a global company.
At CCI, we firmly believe that fostering a vibrant innovation economy is key to generating the jobs and economic activity necessary to support the programs and services prioritized by Minister Girard.

That’s why in our pre-budget submission this year, we put forward recommendations to the Québec government that reflected the fiscal pressures both the government and private sector are facing. Specifically, we advocated for:

Adjustments to Law 14 to better align with the realities of businesses. Extending the period for newcomers to communicate in French with the Québec government from 6 months to 2 years would represent a significant improvement.
Modernizing the procurement process, which serves as a crucial economic development tool, is essential for nurturing the domestic tech sector’s growth.
Updating fiscal policies regarding R&D stock options is vital for maintaining competitiveness and fostering innovation.
Implementing tax credits for Québec-based businesses to promote better equity within the innovation and technology sector.
Further developments regarding Québec’s intellectual property strategy.

At CCI, we advocate that the government’s best strategy for preparing for future challenges is to ensure the prosperity of local companies, thus fostering sustainable economic growth within the province.

Reference Canadian Innovators