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Federal qualifying environmental trust (QET) tax credit - Canada

Federal qualifying environmental trust (QET) tax credit

Last Update: July 22, 2025
Canada
Tax credit for corporations benefiting from qualifying environmental trusts

At a glance

Eligible Funding
  • Up to 15% of project cost
Timeline
  • Unspecified
Financing Type
Tax Credits
Eligible Industries
  • Mining, quarrying, and oil and gas extraction
  • Utilities
  • Administrative and support, waste management and remediation services
Funds Providers
Unspecified
Program status
Open

Overview

The Federal Qualifying Environmental Trust (QET) tax credit allows eligible corporations to claim a credit equal to the Part XII.4 tax paid by the trust, up to the amount of Part I tax owing. This program supports the funding of environmental reclamation activities for mining sites, resource extraction areas, waste deposits, and pipeline operations in Canada.

Financing terms and conditions

  • Tax credit equal to the Part XII.4 tax payable by the qualifying environmental trust (QET) on its income.
  • The tax rate payable by a QET is set at 15%.
  • The tax credit can be claimed up to the amount of Part I tax otherwise payable.

Activities funded

  • Reclamation of sites previously used for mining operations.
  • Restoration of sites used for the extraction of clay, peat, sand, shale or aggregates (such as dimension stone and gravel).
  • Rehabilitation of sites where waste has been deposited.
  • Reclamation activities for sites used for pipeline operations (for trusts created after 2011).

Eligibility

  • The applicant must be a corporation that is a beneficiary under a qualifying environmental trust (QET).
  • The trust must be maintained exclusively to fund the reclamation of a site in Canada used for mining, extraction of clay, peat, sand, shale, or aggregates, the deposit of waste, or the operation of a pipeline (if the trust was created after 2011).
  • The trustees of the QET must include only the federal or provincial Crown, or a Canadian resident corporation authorized under applicable laws to provide trustee services to the public.
  • The QET must be required to be maintained under federal or provincial law, a contract with the Crown, or (if established after 2011) an order from a tribunal under such law.
  • The trust must not be classified as an excluded trust under subsection 211.6(1) of the Income Tax Act.

Who is eligible?

  • Corporations that are beneficiaries of qualifying environmental trusts (QETs)
  • Corporations involved in mining operations
  • Corporations engaged in the extraction of clay, peat, sand, shale, or aggregates (including dimension stone and gravel)
  • Corporations responsible for sites used for the deposit of waste
  • Corporations operating pipelines (for trusts created after 2011)

Eligible geographic areas

  • Canada

How to apply

1

Verify QET eligibility requirements

  • Confirm that your corporation is a beneficiary under a qualifying environmental trust (QET)
  • Ensure the trust meets all criteria as defined in the Income Tax Act
2

Collect required documentation

  • Gather necessary documentation confirming QET status
  • Calculate the Part XII.4 tax payable by the trust
3

Prepare and fill tax forms

  • Complete the federal tax return for your corporation
  • Enter the credit claim on line 648
4

Submit application to CRA

  • File your corporation’s tax return with the Canada Revenue Agency (CRA)
  • Attach any supporting documentation if required

Additional information

  • The rate of tax payable by a qualifying environmental trust (QET) is currently 15%.
  • Enter the credit claim on line 648, up to the amount of Part I tax otherwise payable.
  • Any unused credit amount should be entered on line 792 (page 9).
  • This tax credit is referenced under Section 127.41 of the Income Tax Act.
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Frequently Asked Questions about the Federal qualifying environmental trust (QET) tax credit Program

Here are answers to the most common questions about the Federal qualifying environmental trust (QET) tax credit. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.

What is the Federal qualifying environmental trust (QET) tax credit?

How much funding can be received?

What is the deadline to apply?

Is the Federal qualifying environmental trust (QET) tax credit a grant, loan, or tax credit?

Who are the financial supporters of the Federal qualifying environmental trust (QET) tax credit?

Who is eligible for the Federal qualifying environmental trust (QET) tax credit program?

Who can I contact for more information about the Federal qualifying environmental trust (QET) tax credit?

Where is the Federal qualifying environmental trust (QET) tax credit available?

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