Closure Tax Credit
Your closure tax credit amount is the lesser of:
- 5% of your eligible expenditures for the LNG facility
- the amount of tax paid on net income over the life of the LNG facility
Your last taxation year is:
- the taxation year with a closure date for the LNG facility, or
- if you are a member of a partnership, and the partnership has a closure date for the LNG facility in a fiscal period, it's the taxation year in which that fiscal period of the partnership ends
Eligible expenditures include:
- all eligible closure expenditures, less any amounts you received or were entitled to receive for the eligible expenditure (for example, financial assistance or grants)
- your share of your partnership’s eligible expenditures
An eligible closure expenditure is:
- related to the restoration, reclamation or remediation of an LNG facility site
- incurred between the time you notify the Oil and Gas Commission that you will permanently cease operations and your facility closure date
- an expenditure that has not already been taken into account when calculating your net income, net operating income or net operating loss
Before you can claim this credit, you must notify the Oil and Gas Commission of your intent to permanently cease operations at the LNG facility.
You can claim the credit when you file your LNG income tax return for your last taxation year.
You must claim the closure tax credit within 18 months of the end of your last taxation year.