Tax Credit for Recent Graduates Working in Remote Resource Regions

The Tax Credit for Recent Graduates Working in Remote Resource Regions is a refundable Quebec tax credit intended to encourage recent graduates to work in designated remote resource regions, such as northern or rural areas where labor shortages exist. It helps offset the cost of relocating or living in these regions while supporting economic development.

On a Quebec provincial tax return (TP-1), line 392 is used to claim the Tax Credit for Recent Graduates Working in Remote Resource Regions. This non-refundable tax credit is designed to encourage recent graduates to live and work in designated resource regions of Quebec.

Eligibility requirements:

To claim the credit for a given tax year, you must meet all the following conditions:

• You must be a Quebec resident on December 31 of the tax year.
• You must live in a designated remote resource region of Quebec on that date.
• You must have earned eligible salary or wages during the year from employment in a designated region.
• Your job must be in the same field of study as your diploma or degree.
• You must have graduated from a recognized educational program.
• Your eligible employment must have started within 24 months of graduating.

Eligible work and regions:

Remote resource regions: The tax credit applies to several administrative regions, regional county municipalities (MRCs), and cities in Quebec, including:

• Bas-Saint-Laurent (Region 01)
• Saguenay–Lac-Saint-Jean (Region 02)
• Abitibi-Témiscamingue (Region 08)
• Côte-Nord (Region 09)
• Nord-du-Québec (Region 10)
• Gaspésie–Îles-de-la-Madeleine (Region 11)
• Certain specified MRCs and cities.

The tax credit is limited to 40% of eligible salary or wages, with a maximum of $3,000 per year. The cumulative limit for the credit is either $10,000 or $8,000, depending on eligibility, and once this limit is reached, no further claims can be made.

The $10,000 cumulative limit applies if the employment duties were related to the field in which the taxpayer completed recognized college or university training, and one of the following conditions is met:

• The taxpayer is claiming the credit for the first time in 2024;
• The taxpayer claimed the credit in a previous year for employment that qualifies under the $10,000 cumulative limit; or
• The taxpayer claimed the credit in a previous year for employment under the $8,000 cumulative limit, and the 2024 employment is new employment that started within the preceding 24 months.

In all other situations, the cumulative limit is $8,000.