Quebec weighs $1B cost of matching federal 'mega-deduction' as Champagne backs it

Quebec has not decided whether to harmonize its tax system with Ottawa's productivity "mega-deduction," a move that could cost the provincial treasury about $1 billion. The federal measure, estimated at $36 billion over five years, lets businesses fully deduct spending on machinery, construction materials and new technology. Federal Finance Minister François-Philippe Champagne said Nov. 6 in Montreal that it is well suited to Quebec's many small and medium-sized businesses, but that harmonizing is Quebec's choice. Quebec Finance Minister Nicolas Marceau's office says the measure complicates the province's return to a balanced budget. Champagne was to meet Marceau after the speech.