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 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 3

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 4

That the government expedite direction of the $1.5 billion committed in Budget 2022 for critical mineral supply chain infrastructure, as well as funds from the Canadian Infrastructure Bank and Canadian Broadband Fund to fast track the development of energy, transportation, and telecommunications infrastructure in the north, particularly in the territories and First Nations communities.

Recommendation 5

That the government put in place a one-window approach to facilitate access to available funding to Indigenous Peoples and communities for early engagement and community capacity building with First Nations to support Indigenous participation in critical mineral projects, Canada’s critical mineral strategy and initiatives like the development of the National Benefits Sharing Framework.

Recommendation 6

That the government expand the funding provided to the Geological Survey of Canada and co-fund provincial and territorial geoscience organizations to collaboratively develop comprehensive, regional-level mineral and energy potential models for application in evidence-based land management and conservation planning, and to create a mechanism through which these models can become more widely available to the public.