Federal Budget 2024

As a part of Finance Canada’s pre-budget 2024 consultations, PDAC has offered a list of recommendations that would help bolster the competitiveness of Canada’s mineral exploration and development industry.

PDAC Recommendations for Budget 2024

PDAC recommendations

Recommendation 1

That the government renew the Mineral Exploration Tax Credit for a minimum of 5 years beyond the current expiry date of March 2024, and extend eligibility of the Critical Mineral Exploration Tax Credit by 2 years, from 2027, thereby aligning the periods for the two incentives.

Recommendation 2

That the government adjust the capital gains tax treatment for flow-through shares to reflect the issue price of the security versus the current nil cost base approach to expand participation in this funding mechanism by a broader base of investors within Canada.

Recommendation 3

That the government create a mechanism to allow for the suspension or deferment of expenditure timelines associated with flow-through shares to respond to acute situations (e.g. wildfires) that may create unintended tax consequences for companies and individuals and that can apply to a specific company, region or nationally.

Recommendation 4

That the government establish a new expense category to close the gap between Canadian Exploration Expenses (CEE) and Canadian Development Expenses (CDE) to ensure viable critical mineral projects do not stall due to ineligibility of flow-through share funds for project scoping and assessment work.

Recommendation 5

That the government increase funding to the Geological Survey of Canada to collaborate with provincial and territorial geoscience organizations in developing comprehensive, regional-level mineral potential models to guide Canada’s critical mineral strategy, evidence-based land management and conservation planning.

Recommendation 6

That the government expedite launch of the Indigenous Loan Guarantee Program and the National Benefits Sharing Framework and create a one-window approach for Indigenous Peoples, communities, and businesses to access these programs, thereby accelerating community capacity development and meaningful participation in the mineral sector and advancing national goals under Canada’s critical mineral strategy.