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Tax Credit for a Labor-Sponsored Fund

January 20, 2026

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Tax Credit for a Labor-Sponsored Fund

Quebec residents who invest in labour-sponsored investment funds may be entitled to a non-refundable provincial tax credit. These funds, such as the Fonds de solidarité FTQ or Fondaction, invest in small and medium-sized Quebec businesses, aiming to support economic growth, job creation, and regional development.

Relevé 10 – Tax Credit for Labour-Sponsored Funds:

You can claim a tax credit if you contribute to certain labour-sponsored funds. The credit applies if, in the current year or within the first 60 days of the next year, you bought, as a first-time purchaser:

  • Class A shares in the Fonds de solidarité des travailleurs du Québec (FTQ), or
  • Class A or B shares in Fondaction, the development fund of the Confédération des syndicats nationaux.

Carrying Forward Unused Credits:

If you don’t use the full credit in the current year, you may be able to carry the unused portion forward to future years. Rules differ for Quebec and federal taxes:

Quebec: You can carry forward unused credits no matter when you bought the shares.

Eligible Contributions:

  • The taxpayer must be a resident of Quebec on December 31 of the taxation year.
  • Shares must be acquired from an eligible labour-sponsored fund and held for a minimum of 8 years (or as specified by the fund).
  • The investment must be made within the annual subscription limits announced by the fund.

Calculation of the Credit:

For 2024, the tax credit rate is 15% of the amount invested.

  • The maximum eligible annual contribution is $5,000, resulting in a maximum annual credit of $750.
  • The credit is non-refundable, meaning it can reduce Quebec income tax payable to zero but cannot generate a refund.

Early Redemption:

If shares are redeemed before the minimum holding period, a portion or all of the tax credit claimed may need to be repaid to Revenu Québec. The repayment is generally proportional to the number of years remaining in the holding period. Holding shares for the required period ensures the full benefit of the credit and supports the fund’s economic development mandate.

Example :

Gabriel, a Quebec resident, invested $4,000 in the Fonds de solidarité FTQ in 2024.

Answer: Eligible investment: $4,000 × Credit rate: 15% = Tax credit = $600.
Gabriel can claim this $600 non-refundable tax credit on his 2024 Quebec income tax return.

How to do in TaxTron?

In the Deductions section, locate the RL-10 entry and input the invested amount.