How much funding can be received?

Funds up to 15% of admissible expenses.

What is the deadline to apply?

The deadline to apply is not specified.

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

Federal qualifying environmental trust (QET) tax credit is funded by Government of Canada

What are Federal qualifying environmental trust (QET) tax credit's eligibility criterias?

Be a beneficiary of an eligible environmental trust (EET) The EET must be administered exclusively to finance the restoration of a location in Canada related to mining or similar activities Satisfy the administration and fiduciary conditions set forth by federal or provincial legislation

Federal qualifying environmental trust (QET) tax credit

Last Update: May 3, 2025

Canada

Tax credit for corporations benefiting from qualifying environmental trusts

Federal qualifying environmental trust (QET) tax credit at a glance

Eligible Funding

Up to 15% of project cost

Timeline

Continuous Intakes

Financing Type

Tax Credits

Eligible Industries

Mining, quarrying, and oil and gas extraction
Utilities
Administrative and support, waste management and remediation services

Grant Providers

Government of Canada

Status

Open

Overview of the Federal qualifying environmental trust (QET) tax credit program

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.

Eligible projects & activities

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 criteria of the Federal qualifying environmental trust (QET) tax credit program

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 to the Federal qualifying environmental trust (QET) tax credit program

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

Collect required documentation

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

Prepare and fill tax forms

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

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.