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Support
for regional economies
Additional
support for the Gaspésie—Îles-de-la-Madeleine
recovery plan
Some
of the action taken under the Gaspésie—Îles-de-la-Madeleine
recovery plan has been more successful than anticipated. We
therefore need to renew this action in order to pursue the
economic diversification, tourism development and employment
support initiatives of recent years.
For
that purpose, the government is increasing the funding for
the Gaspésie—Îles-de-la-Madeleine recovery
plan by $5 million in 2002-2003 and $3 million in 2003-2004.
More
specifically, the budget envelope of the Fonds de diversification
économique will be increased by $1.5 million in 2002-2003
and $1.5 million in 2003-2004. That of the Fonds de développement
touristique de la Gaspésie—Îles-de-la-Madeleine
will be increased by $1.5 million in 2002-2003 and $1.5 million
in 2003-2004. Finally, $2 million will be injected into the
Fonds de création d'emplois municipaux in 2002-2003.
Refundable
tax credit for processing activites in the resource regions
- Broadening
of the notion of certified business
- Streamlining
of the notion of eligible employee
Broadening
of the notion of certified business
The
notion of "certified business" will be broadened,
as of calendar year 2001, to also designate a business whose
activities are:
- setting
precious stones or fine stones;
- making
jewels;
- printing
or publishing, including activities relating to typesetting,
printing, collating, folding and bundling;
- drying
of structural lumber in ovens and planing of structural
lumber of a plant.
In
the latter case, for greater clarity, the activities occurring
prior to the delivery of logs to a sawmill or any other place
for processing or that consist in sawing logs into structural
lumber will not be recognized as activities of a certified
business.
Streamlining
of the notion of eligible employee
Currently,
the notion of eligible employee means an employee at least
75% of whose duties are devoted to carrying out, supervising
or directly supporting the activities of the certified business
carried on by the eligible corporation. Accordingly, duties
relating to general administration, such as administrative
services, are ineligible.
In
the case where a corporation operates more than one certified
business or receives more than one refundable tax credit,
the duties of some employees may be devoted to supporting
the activities of these certified businesses, but the proportion
of such duties may be less than 75% for each such business.
Accordingly,
the notion of eligible employee will be streamlined to allow
such a corporation to receive the tax credit regarding the
increase in payroll attributable to such employees.
This
streamlining measure applies as of calendar year 2001.
Refundable
tax credit for the Gaspésie and certain maritime regions
of Québec
Generally
speaking, this refundable tax credit is allowed with respect
to the increase in payroll attributable to eligible employees
of an eligible corporation operating in the administrative
regions of Gaspésie—Îles-de-la-Madeleine
and Côte-Nord and in the Matane RCM, regarding five
consecutive calendar years.
Like
the change made to the tax credit for processing activities
in resource regions, the notion of eligible employee will
be changed according to the same rules as those indicated
in the case of the refundable tax credit for processing activities
in the resource regions.
This
change will apply as of calendar year 2001.
Refundable
tax credit for the Vallée de l'aluminium
Generally
speaking, the refundable tax credit for the Vallée
de l'aluminium is granted regarding the increase in payroll
attributable to eligible employees of an eligible corporation
operating in the Saguenay-Lac-Saint-Jean administrative region
regarding five consecutive calendar years.
Like
the change made to the tax credit for processing activities
in the resource regions and the tax credit for Gaspésie
and certain maritime regions of Québec, the notion
of eligible employee will be changed according to the same
rules as those indicated in the case of the refundable tax
credit for processing activities in resource regions.
This
change will apply as of calendar year 2001.
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