THE MINERAL EXPLORATION TAX CREDIT (METC)
In addition to regular flow-through shares that provide 100% deduction for exploration, the federal METC is a 15% non-refundable tax credit applicable only to grassroots exploration in Canada, and deductible from federal income taxes payable.
Following extensive advocacy by PDAC, the METC has been extended until 2024.
…plus provincial and territorial deductions and tax credits
PROVINCIAL TAX INCENTIVES
On top of the federal incentives, a number of provinces provide an additional incentive that further reduces net cost to the investor.
- Additional tax credits that apply to the provincial portion of income tax (calculated as % of the investment).
- Quebec allows investors to deduct up to 120% of the cost of certain qualifying exploration expenses incurred by non-producing companies.
The provincial deduction and tax credits apply only to expenditures in applicable provinces and are only available to taxpayers residing within, or otherwise taxable in, the jurisdiction where the exploration is taking place. The effect of these incentives varies depending on the jurisdiction. See jurisdiction specific net cost on the map of Canada below.