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Federal qualifying environmental trust (QET) tax credit - Canada
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Federal qualifying environmental trust (QET) tax credit

Tax credit for corporations benefiting from qualifying environmental trusts
Government of Canada
Last Update: March 4, 2026
Funding available
No Condition
Timeline
  • Open continuously
Location
Canada

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.

/100
Opportunity Score
Moderate potential, but conditions must align.

At a glance

Funding available

Financing goals
  • Reduce environmental footprint
Eligible Funding
  • Up to 15% of project cost
Timeline
  • Open continuously

Eligible candidates

Eligible Industries
  • Mining, quarrying, and oil and gas extraction
  • Utilities
  • Administrative and support, waste management and remediation services
Location
  • Canada
Legal structures
  • For-profit business
Annual revenue
  • All revenue ranges
Organisation size
  • All organization sizes
Audience
  • Canadians

Next steps

1
Determine your project
2
Validate your eligibility

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

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

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.

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?

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.

How much funding can be received?

Federal qualifying environmental trust (QET) tax credit Funds up to 15% of admissible expenses.

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

To be eligible for the Federal qualifying environmental trust (QET) tax credit program, you must: 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

What expenses are eligible under Federal qualifying environmental trust (QET) tax credit?

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).

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

The Federal qualifying environmental trust (QET) tax credit program is available across Canada.

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

Federal qualifying environmental trust (QET) tax credit is a Tax Credits

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

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