Canada is extending the 15 percent Mineral Exploration Tax Credit, which was slated to end on March 31, 2017. According to Canada’s Natural Resources Ministry, the tax is extended for one year until March 31, 2018.
The 15 percent mineral exploration tax credit is aimed at helping junior mineral exploration companies raise the capital they need to finance early stage mining exploration projects. The credit is viewed as vital to mining development and the creation of new mining opportunities in Canada.
The flow-through shares system allows junior miners to issue shares to investors to fund exploration projects. This way, backers can deduct the exploration company’s expenses against their taxable income. The mineral exploration tax credit adds a 15% incentive above the direct tax expense benefits.
Over 200 companies and 400,000 investors have made use of the credit since it was first established in 2015. Requirements of the tax incentives include launching exploration activities and field work within 24 months of achieving financing.