A qualifying environmental trust (QET) is a way for governments in Canada to make sure that companies with significant environmental footprints, such as mining operations, are able to fund the reclamation of the sites they exploit.
Corporations that are beneficiaries of qualifying environmental trusts in British Columbia may claim a tax credit on taxable income from the trust. The credit will reduce the amount of provincial tax that must otherwise be paid for that tax year.
How to claim the British Columbia qualifying environmental trust tax credit
Eligible corporations may claim the British Columbia qualifying environmental trust tax credit when filing their T2 Income Tax Return. To obtain the credit, enter the claim amount on line 670 of Schedule 5, Tax Calculation Supplementary – Corporations.
Note that the credit is fully refundable, but must first be applied against the total amount of income tax to be paid and cannot be carried back or carried forward.
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Frédéric Roy-Gobeil
CPA, M. TAX
As President of T2inc.ca and an entrepreneur at heart, I have founded many start-ups such as delve Labs and T2inc.ca. A former tax specialist at Ernst & Young, I am also a member of the Ordre des comptables professionnels agréés CPA and have a master's degree in taxation from the Université de Sherbrooke. With a passion for the world of entrepreneurship and the growth mindset, I have authored numerous articles and videos on the industry and the business world, as well as on accounting, taxation, financial statements and financial independence.
