Closure Tax Credit

The closure tax credit is a refundable tax credit applicable to eligible expenditures incurred during the process of permanently closing an LNG facility site.

If you paid tax on net income from liquefaction activities and incurred eligible closure expenditures, you may claim this credit in your last taxation year.

Your closure tax credit amount is the lesser of:

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

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

Claiming the Credit

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.


Partnerships engaged in liquefaction activities calculate eligible expenditures and eligible closure expenditures at the partnership level and allocate those expenditures to each partner.