BC Natural Gas Tax Credit

The natural gas tax credit reduces the amount of B.C. corporate income tax payable for qualifying corporations for taxation years that begin on or after January 1, 2020. Value The maximum credit you 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% +Any unused credit amount can be carried forward to subsequent taxation years as long as the qualifying corporation continues to meet all the requirements +If there is an amalgamation or wind up of a subsidiary, the qualifying corporation may be able to use the unused natural gas tax credit carried forward from the predecessors or the subsidiary

Grant Deadline

Deadline not available

Funding Amount

Deadline not available

Type of Grant

Tax Credit

Sectors

Manufacturing, Oil & Gas

Demographics

Incorporation

For Profit

Perks

Region Restriction

This grant is restricted to whole of Canada

Keywords

Age Restriction

This grant is age restricted from 18 to 100

Eligibility and Requirements

The 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 Only qualifying corporations are eligible to claim the natural gas tax credit.

A qualifying corporation is a corporation:

That has a permanent establishment in B.C. during the taxation year
Whose principal business in B.C. during the taxation year consists of one or more of the following:
The exploration for or development of petroleum or natural gas
The production, gathering, processing, refining, marketing, storage or disposal of petroleum, natural gas or LNG
The construction, use, or operation of a major LNG facility
The liquefaction of natural gas +A prescribed activity
A qualifying corporation does not include a corporation that is a type or class of corporation prescribed by regulation.

Application Requirements

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:

A Natural Gas Tax Credit Application (FIN 515) for the tax credit within 18 months after the end of the taxation year that begins on or after January 1, 2020
All required supporting documents listed on the application
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
Submission instructions can be found on the Natural Gas Tax Credit Application (FIN 515) +Records of the cost of natural gas, calculated on a monthly basis to support your application, must be maintained. These records must include all the information and follow the calculations shown on the Annual Cost of Natural Gas Worksheet template (XLSX). Other formats or internal documents may be used if they include all fields in the worksheet template.

Grant Application website

https://www2.gov.bc.ca/gov/content/taxes/income-taxes/corporate/credits/natural-gas