Line 648 - Federal qualifying environmental trust (QET) tax credit

Line 648 - Federal qualifying environmental trust (QET) tax credit

A corporation that is the beneficiary under a qualifying environmental trust can claim a tax credit equal to Part XII.4 tax payable by the trust on that income.

A QET is a trust:

• whose trustees only include:

  • the federal or provincial Crown, or

  • a corporation resident in Canada and licensed or authorized under Canadian federal or provincial laws to carry on the business of providing services as trustee to the public in Canada

• that is maintained only to fund the reclamation of a site in Canada that is, or has been used primarily for, or for any combination of the following:

  • the operation of a mine

  • the extraction of clay, peat, sand, shale, or aggregates (including dimension stone and gravel)

  • the deposit of waste, or

  • if the trust was created after 2011, the operation of a pipeline

• that is, or may become within the specified time period, required to be maintained under:

  • a federal or provincial law

  • the terms of a contract entered into with the federal or provincial Crown, or

  • if the trust was established after 2011, an order of a tribunal constituted under federal or provincial law

    and

• that is not an excluded trust, as defined under subsection 211.6(1) of the Income Tax Act

The rate of tax payable by a QET is currently 15%.

On line 648, enter the credit claim up to the amount of Part I tax otherwise payable. On line 792 (page 9), enter any unused amount.

Reference
Section 127.41

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