What are the tax credits for labour-sponsored fund...

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What are the tax credits for labour-sponsored funds (FTQ, Fondaction) in Québec?

Québec provides non-refundable tax credits if you acquire shares in labour-sponsored funds. The tax credit is meant to encourage and reward investment in the local economy.

There are two different credits available based on the funds you acquired the shares from:

  • The Fonds de solidarité des travailleurs du Québec (FTQ): maximum available credit of $750 (calculated as 15% of the purchase price of shares, for total purchases of up to $5,000)
  • Le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l'emploi (Fondaction): maximum available credit of $1,000 (calculated as 20% of the purchase price of shares, for total purchases of up to $5,000)

Note: The credit is available up to a combined purchase price limit of $5,000, which is shared between Fondaction and FTQ.

Example 1: Jane buys shares in Fondaction for $3,000. She can receive a tax credit for additional share purchases in Fondaction or FTQ for up to $2,000 in purchase price.

Example 2: John buys shares in FTQ for $5,000. He doesn't have any tax credit remaining for any additional shares he purchases in either Fondaction or FTQ.

Conditions for claiming the credits

You can claim this credit if:

  1. During the tax year or within the first 60 days of the following year, as the first purchaser, you acquired:
    • class A shares in FTQ, and/or
    • class A or class B shares in Fondaction, and
  2. You do not fall into any of the restrictions set by Revenu Québec.

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