Federal qualifying environmental trust (QET) tax credit - Canada

Federal qualifying environmental trust (QET) tax credit

grant_single|update May 3, 2025
Canada
Tax credit for corporations benefiting from qualifying environmental trusts

grant_single_labels_website|summary

grant_single|eligibleFinancing
  • grant_single|projectCostPercent
grant_single|deadlines
  • grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
  • Mining, quarrying, and oil and gas extraction
  • Utilities
  • Administrative and support, waste management and remediation services
grant_single|grantors
  • Government of Canada
grant_single|status
grant_card_status|open

grant_single_labels_website|preview

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.

grant_single_labels_website|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.

grant_single_labels_website|projects

  • 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).

grant_single_labels_website|admissibility

  • 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.

grant_eligibility_criteria|who_can_apply

  • 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)

grant_eligibility_criteria|zone

  • Canada

grant_single_labels_website|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

grant_single_labels_website|otherInfo

  • 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.

Apply to this program

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