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Flow-through • Financial / Taxation
• Issues & Advocacy
Page Index
PDAC’s position on Canada’s ‘super’
flow-through program
Chronology
Flow-through
supplement from the Globe and Mail, Dec. 2009
Canada’s Mineral Exploration Tax Credit, formerly known as the Investment Tax Credit for
Exploration (ITCE) and familiarly known as the ‘super’ flow-through
program, has been a very successful program for mineral exploration in
Canada. In the January 2009 federal budget, the government
announced its intention to extend the program to March 31, 2010
click
here.
The PDAC continues to advocate for this important program to be made
permanent.
Background
The Investment Tax Credit for Exploration or ‘super’ flow-through
program, a tax incentive for grassroots mineral exploration, was
introduced in October 2000 as a temporary measure to help moderate the
effect of a global downturn in mineral exploration in the 1990s. The
original three-year program has been extended twice since its inception,
both for additional one-year periods. The program expired at the end of
2005 but was re-instated in May 2006 as the Mineral Exploration Tax
Credit. The program has been extended to March 2009.
Reasons to support the continuation of the
‘super’ flow-through program
The program has contributed significantly to mineral exploration
activity and to new mineral discoveries in Canada. Here are some data:
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Exploration expenditures in Canada have risen
from approximately $300 million in the late 1990s to an estimated
$1.722 billion in 2006, the highest total for exploration and
deposit appraisal expenditures since 1987 and 1988.
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Canada remains the number one destination for
exploration investment in the world.
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New mineral discoveries in Canada rose from a
low of 15 in 1999 to a high of 268 in 2005.
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The program helps to maintain Canada’s
competitiveness in the face of fierce global competition for
exploration investment.
The ‘super’ flow-through program keeps exploration
dollars in Canada, particularly in northern and rural areas, for
Canadian projects.
Other jurisdictions consider flow-through and the
‘super’ flow-through enhancement to be worthwhile programs. A number of
Canadian provinces have harmonized their programs with the federal
program.
The ‘super’ flow-through program helps to address
the longstanding decline in base metal reserves in Canada. New
discoveries help to maintain existing mining infrastructure, including
smelters and refineries, and the communities they support.
July 31, 2007
Following the PDAC’s “Save Super Flow-through” campaign in
early March,
this reply was received from Finance Minister James
Flaherty |
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May 25, 2007
In a letter sent to the PDAC, Minister of Natural Resources
Canada Gary Lunn attests to the value of the Mineral
Exploration Tax Credit and its positive impact on
exploration activity in Canada.
Full letter. |
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March 19, 2007
Federal Finance Minister Jim Flaherty announced that the
Mineral Exploration Tax Credit would be extended to March
31, 2008. The program had been due to expire at the end of
March 2007.
Click
here for media advisory. |
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July
2006
What you should know about 'super' flow-through shares
(revised brochure in pdf format). |
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May 2, 2006
Canada’s federal government announced today that it
plans to re-instate the ‘super’ flow-through program,
effective May 2, 2006, to March 31, 2007.
Click here for media
advisory |
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November 23, 2004
In a statement to the House of Commons, the Hon.
Raymond Bonin calls for Investment Tax Credit for
Exploration in Canada program to be made permanent.
Full text. |
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March 23, 2004
Federal finance minister Ralph Goodale announced in his
budget today that the Investment Tax Credit for
Exploration in Canada is to be extended by year. The
PDAC applauds this move.
Press release. |
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October 10,
2003
Three years ago, Canada's federal government introduced
an exploration investment tax credit program that
enhanced the existing flow-through share program. The
impact of the enhanced program has been significant. |
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February
19, 2003
The federal government announced
in its budget yesterday that the 'super' flowthrough
program is to be fine tuned and extended by at least
one year. The buy period will now close on December
31, 2004, and the expenditure period on December 31,
2005. Click here for
the PDAC's press release. |
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| October
2002: The ‘super’
flow-through program will be expiring in less than 15
months, and the PDAC and B.C. & Yukon Chamber of
Mines are conducting a letter writing campaign to have
the program improved and extended. You can help by
writing a letter to the federal government describing
how important the program has been for you. Click here
for
instructions
and sample letters for
companies,
individuals
or
service
providers to use. |
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June 6, 2002 Extending
the buy period for 'super' flow-through shares is one
of four recommendations put forward to Finance
Minister John Manley by the PDAC, B.C. & Yukon
Chamber of Mines, and the Association des prospecteurs
du Québec. |
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| May 13,
2002 Is
flow-through working for you? Canadian governments are
conducting a survey on the effectiveness of tax credit
incentives for flow-through shares. If your company
has raised flow-through funds since the announcement
of the new tax credit programs in 2000, we urge you to
complete this survey. |
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| December
21, 2000 Eligible expenses. |
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| November
2000 PDAC Communique on
exploration tax credit (PDF
format). |
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| October
20, 2000 PDAC's reaction. |
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| October
18, 2000 Excerpt of letter from
NRCan Minister. |
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| October
18, 2000 Federal government's
announcement of exploration tax credit (PDF
format). |
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