Federal Budget 2025

As a part of Finance Canada’s pre-budget 2025 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 2025

PDAC recommendations

Recommendation 1

Renew the Mineral Exploration Tax Credit (METC) and the Critical Mineral Exploration Tax Credit (CMETC) for a minimum of 5 years until March 2030, thereby aligning availability of these two cooperative incentives.

Recommendation 2

Adjust the capital gains tax treatment for flow-through shares (FTS) to reflect the issue price of the security versus the current nil cost base approach, to eliminate phantom capital gains and expand FTS participation by a broader base of Canadian investors.

Recommendation 3

Close the gap in FTS eligibility between the Canadian Exploration Expense (CEE) and Canadian Development Expense (CDE) categories, to ensure funds can be used towards the scoping and assessment work required to establish mineral reserves and make mine development decisions.

Recommendation 4

Create a mechanism that can extend FTS expenditure timelines in response to acute, unforeseen situations (e.g. wildfires, floods) and can apply to a specific company, region or nationally to mitigate unintended tax consequences arising for companies and individuals.

Recommendation 5

Explore ways to leverage successful projects and recapitalize the Critical Mineral Infrastructure Fund (CMIF) beyond the initial $1.5 billion commitment.

Recommendation 6

Substantially increase funding to the Geological Survey of Canada to develop comprehensive mineral potential models to bolster domestic competitiveness, accelerate mineral discoveries, and reduce development timelines for new mines in Canada.

Recommendation 7

Expedite development of a one-window access point for the Indigenous Loan Guarantee Program, and other government initiatives that contribute to Indigenous participation in the mineral industry and drive economic and capacity growth.