Clean energy and energy conservation equipment in Quebec
A Quebec corporation buying solar, storage and efficiency equipment on or after September 15, 2026 can deduct 100% of the cost in the year the property is available for use. Combined tax rates in Quebec: 11.2% on small business income and 26.5% at the general rate.
Does Quebec follow the federal rule? Not confirmed Quebec does not adopt federal tax changes automatically and has not published details for this measure. The federal portion of the saving is firm; the Quebec portion is not. Details and sources
Clean energy and energy conservation equipment in Quebec
Worked examples
| Purchase | Old year-one deduction | New year-one deduction | Tax reduction (small business) | Tax reduction (general rate) | NPV benefit (general) |
|---|---|---|---|---|---|
| $25,000 | $3,750 | $25,000 | $2,333 | $4,181 | $561 |
| $100,000 | $15,000 | $100,000 | $9,330 | $16,725 | $2,244 |
| $250,000 | $37,500 | $250,000 | $23,325 | $41,813 | $5,610 |
Quebec administers its own corporate income tax and is not part of the federal collection agreement, so its rates are not in the Canada Revenue Agency table. Confirm the current rate and whether Quebec harmonizes with this federal measure before relying on these figures. Stack the deduction with any available clean technology ITC. The credit reduces the capital cost for CCA purposes, so run the numbers both ways.
What sales tax does to your deductible cost in Quebec
Quebec charges GST 5% + QST 9.975% on most equipment purchases. A business registered for GST/HST recovers that tax through input tax credits, so it is not part of the capital cost and not part of what you deduct. Enter the price before tax in the calculator. Quebec sales tax is recoverable by registrants through input tax refunds, so like GST it stays out of the capital cost.
If you are not registered for GST/HST, the tax you cannot recover does form part of the capital cost. Most businesses buying equipment at this level are registered.
See also: all assets in Quebec · Clean energy and energy conservation equipment in other provinces
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