2025-2026 BUDGET OF THE GOVERNMENT OF QUÉBEC
Propulsion Québec welcomes the measures announced today by Finance Minister Mr. Éric Girard to support businesses during this period of economic uncertainty and geopolitical tensions with our main trading partner, in particular those that support business competitiveness, innovation and commercialization.
“The zero-emission land transport industry is facing headwinds. Financing and supply challenges, combined with the trade conflict, are affecting companies in our sector around the world. In this context, the government is on target by supporting critical phases such as research, development and commercialization to encourage the consolidation of our local value chain,” says Michelle LLambías-Meunier, President and Chief Executive Officer of Propulsion Québec.
“We had recommended the reinstatement of accelerated depreciation measures, notably for clean technologies and zero-emission vehicles, and the government heard us. These measures help ease pressure on cash flow for companies that invest heavily in capital assets in the first year,” adds Ms. LLambías-Meunier.
The importance of staying the course on electrification
Propulsion Québec welcomes the renewal of the programRoulez vertstarting on April 1st, and running until December 31, 2026. However, we note the introduction of an annual contribution for electric and plug-in hybrid vehicles to support financing of the Fund for Land Transport Networks (FORT) and the end of free access to toll bridges and ferries for vehicles with a green licence plate starting in 2027, as well as the end of the incentive exemption applicable to electric and hybrid vehicles for luxury vehicle registration.
We therefore note an end to incentives for electromobility users in 2027, based on the presumption of purchase cost parity between electric vehicles and combustion vehicles. While parity in 2027 is expected and desirable to meet electrification and GHG reduction targets, Propulsion Québec recommends that the Government of Québec ensure this parity is confirmed before the incentives are ended.
“We would have liked the budget to confirm the renewal of other electrification programs such asÉcocamionnageand theSchool Transport Electrification Program, to address current uncertainty. Incentives for charging must also be maintained and extended. We welcome the increase in funding dedicated to the Plan for a Green Economy and encourage the Government of Québec to announce, as soon as possible, the renewal of the programs and the amounts that will be allocated to them,” says Ms. LLambías-Meunier.
A clear willingness to support the battery supply chain
“The budget plan clearly confirms the government’s intention to continue supporting the battery sector, considered a strategic niche, as well as the extraction and processing of critical minerals. This pivotal sector in the electric vehicle value chain represents a strategic lever for Québec,” concludes Ms. Llambías‑Meunier.
Highlights for the electric and intelligent transport sector
Several measures presented in the budget are of interest for the electric and intelligent transport sector, notably:
- The relaunch of the Roulez vert program on April 1, 2025
- An increase of approximately $200 million to the Plan for a Green Economy
- The establishment of a new investment fund to replace Impulsion PME
- The establishment of a tax credit for research, innovation and commercialization (CRIC)
- The reinstatement of accelerated depreciation measures at a rate of 100% in the year of acquisition for zero-emission vehicles and energy production equipment
- $88.1 million to adopt a new Quebec Plan for the valuation of critical and strategic minerals for the 2025-2030 period
- The introduction of a refundable tax credit related to resources on critical and strategic minerals to promote the development of CSM
- $42.3 million to implement the SME Plan 2025-2028 aimed at helping businesses in all regions of Québec access the services and support they need to ensure their development and growth
- $15 million to support business research and innovation in priority sectors
