Just days before the election is called, the Couillard government announces $ 863 million in grants, loans and tax credits to help Quebec companies fight the negative effects of the US trade war. Canada.
“We can not sit idly by. There is uncertainty. There is concern. The public sees that this uncertainty exists. This is not a view of the mind. The situation of the international markets for a nation turned towards the exploration like ours is major “, launched the prime minister Philippe Couillard, on Wednesday, in point of press.
The cost of this announcement will be paid from the margins of maneuver budget.
Mr. Couillard explains that this is an “intensification” of economic policies already in place.
The flagship measure is an enhancement of the investment tax credit for manufacturing and processing equipment, which will cost $ 337 million over five years.
Nearly 5,000 companies will benefit, including 3,000 companies that are close to major urban centers and do not have access.
Companies affected by US protectionist policies will be eligible for a doubled tax credit.
3500 SMEs affected
Quebec also announces $ 90 million, which will be lent to some 3,500 small and medium-sized businesses that have to pay to export to the United States since US President Donald Trump imposed 25% tariffs on Canadian steel and 10% on aluminum.
This is a liquidity maintenance measure: Investissement Québec will lend up to 75% of the value of the tariff to businesses, which must pay the penalty before selling the product to their American customers.
Quebec is also ahead of the reduction in the payroll tax for SMEs already included in the budget and will raise the payroll threshold to be entitled to $ 5 to $ 7 million.
Nearly 10,000 more SMEs with 80 or fewer employees will be entitled to this tax reduction. The measure will cost $ 260 million.
Support to the agricultural world
Quebec also reserves $ 45 million to the agricultural world, including $ 15 million in direct grants, the equivalent of $ 50,000 per project. The Conseil du patronat du Québec welcomed this “strengthening of the plan to help businesses affected by US protectionist measures”.