Federal Budget 2023

As a part of Finance Canada’s pre-budget 2023 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 2023

Recommendation 1

That the Federal government extend the Mineral Exploration Tax Credit (METC) to 2027, to align with the availability of the Critical Mineral Exploration Tax Credit (CMETC). 

Recommendation 2

That the Federal government increase eligibility of Canadian Development Expenses (CDE) from 30% to 100% to match Canadian Exploration Expense (CEE) eligibility when directed towards development of new critical mineral mines in Canada. 

Recommendation 3

That the Federal government conducts a review of the net benefit of flow-through share regime, including both CDE and CEE that aligns with the current 5-year renewal cycle of the METC and CMETC. 

Recommendation 4

That the Federal government increase the METC for exploration within Canada’s Territories from 15% to at least 30% and monitor the uptake of the new CMETC within these regions over the coming 12-18 months to gauge the credit’s efficacy, and if additional incentive is needed to remain competitive. 

Recommendation 5

That the Federal government expedite development of a Pan-Canadian Geoscience Strategy (PGS) by providing direct funding to provincial and territorial geoscience organizations to develop integrated, regional-level mineral potential models to support evidence-based land management and conservation planning.