2. Promoting investment and employment

Québec’s economy is healthy

Real business investment: increase of 33% since 2003.

Construction of new housing: 52 000 units per year over the past four years.

Unemployment rate: 7.2% in April, the lowest level in 32 years.

Job creation:

• 108 300 new jobs over the past 12 months;
• 29% of the Canadian total.
  

Eliminating the tax on capital

Full elimination of the tax on capital after December 31, 2010

The tax with the most harmful impact on investment and employment is being eliminated.

• For all Québec businesses, regardless of their activity sector.

For the manufacturing sector

To give the manufacturing sector the means to cope with foreign competition.

• Enhancement of capital cost allowances.
• Until the tax on capital is fully eliminated, increase in the tax credit for new investments.