Tax credit for recent graduates working in a designated region (Bill C-295)

This note was prepared at the request of Mr. Maxime Blanchette-Joncas, MP for Rimouski-Neigette—Témiscouata—Les Basques.

Introducing a tax credit of up to $3,000 per year, to a maximum cumulative amount of $8,000, for recent graduates working in a designated region. The designated regions are usually rural or remote. The tax credit will be available beginning in 2021. The PBO estimates that the cost will peak at $129 million in 2023-24. It will then decrease slightly over the next two years before reaching a steady state in 2025-26. It will then grow at the same rate as the target population.