Natural Gas Tax Credit
No fixed amount
Tax Credit
Description:
This tax credit is available to qualifying corporations that own natural gas immediately after the natural gas passed through a liquefied natural gas (LNG) facility inlet meter for a major LNG facility during the taxation year.
Comments on Funding:
The maximum credit applicants can claim in a taxation year is the least of:
– 3% of the cost of natural gas notionally acquired at an LNG facility inlet meter plus any unused natural gas tax credit carry forward from a previous year,
– The qualifying corporation’s B.C. corporate income tax payable after all other B.C. income tax credits have been deducted, or
– The amount used to reduce the qualifying corporation’s B.C. corporate income tax to the amount that would be payable if the B.C. general corporate income tax rate was 9%
Rolling deadline
Eligibility:
The applicant must be a qualifying corporation:
1. That has a permanent establishment in B.C. during the taxation year;
2. Whose principal business in B.C. during the taxation year consists of one or more of the following:
a) The exploration for or development of petroleum or natural gas;
b) The production, gathering, processing, refining, marketing, storage or disposal of petroleum, natural gas or LNG;
c) The construction, use, or operation of a major LNG facility;
d) The liquefaction of natural gas;
e) A prescribed activity.
Application Steps:
The qualifying corporation must file and submit the following forms and documents to the B.C. Ministry of Finance to claim the natural gas tax credit:
1. A Natural Gas Tax Credit Application (FIN 515) (PDF, 270KB) for the tax credit within 18 months after the end of the taxation year that begins on or after January 1, 2020;
2. All required supporting documents listed on the application;
3. Proof, within 3 years after the end of the taxation year, that all B.C. and federal income taxes for the taxation year have been paid.
Documentation Needed:
Applicants must submit the following:
1. copies of all notices of assessment or reassessment issued by Canada Revenue Agency for the taxation year;
2. business numbers;
3. other supporting documents as listed.
Other Things to Note:
About the author
Maurice
