Finance & Taxation

Super Flow-Through Program

PDAC’s position on Canada’s ‘super’ flow-through program
Super Flow - Through Brochure ( English )
Super Flow - Through Brochure ( French )

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 2015 federal budget, the government announced to extend the program to March 31, 2016. Click here. The PDAC continues to advocate for this important program to be made permanent.

The Investment Tax Credit for Exploration or ‘super’ flow-through program, a tax incentive for grassroots mineral exploration, was initially 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. Since then, the program has been extended annually.

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:

  • Exploration expenditures in Canada have risen from approximately $300 million in the late 1990s to an estimated $ 2.8 billion in 2011, the highest total for exploration and deposit appraisal expenditures since 1987 and 1988.

  • Canada remains the number one destination for exploration investment in the world in 2013.

  • According to Natural Resource Canada, some of the  major discoveries include the Lalor Lake zinc discovery in Manitoba, the McFaulds Lake Eagle One (nickel-PGE) and Blackbird (chromite) discoveries in Ontario’s Ring of Fire region, and the Eleonore gold deposit in Quebec.

  • 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.

For more information on Super Flow-Through Program and taxation please visit Natural Resource Canada's website.