Tax Credits – Mining Exploration Tax Credit

If you are a corporation or a member of a partnership, please visit Corporate Income Tax - Mining Exploration Tax Credit.

If you conduct grassroots mineral exploration in British Columbia, you may qualify for the Mining Exploration Tax Credit (METC).

To be eligible, you must incur qualified mining exploration expenses before January 1, 2017 for determining the existence, location, extent, or quality of a mineral resource in British Columbia.

The credit applies to exploration for all base and precious metals, coal and some industrial minerals. Drilling expenses for oil and gas do not qualify. For more detailed information on qualifying minerals, contact the Canada Revenue Agency at 1-800-663-1511.

The credit is calculated as 20% of qualified mining exploration expenses (see CIT 006 for the definition of qualified expenses) less the amount of any assistance received or receivable. Assistance includes reimbursements you have received or are entitled to receive, as well as grants, subsidies, rebates and forgivable loans.

After February 20, 2007, an enhanced rate of 30% is available for qualified mineral exploration undertaken in prescribed Mountain Pine Beetle affected areas. The prescribed Mountain Pine Beetle affected area has been expanded effective December 1, 2008.  Please see the Regulation for more information.

To view a map of the expanded qualifying Mountain Pine Beetle area, please see the overview map or the detailed area maps.

For more information on the METC, please see Bulletin CIT 006, Mining Exploration Tax Credit, and our METC Frequently Asked Questions.

Claiming the Credit

The credit is claimed when filing your T-1 Income Tax Return. The METC credit is calculated on Form T88.

The credit is fully refundable but must first be applied against total income tax payable. There are no carry-forward or carry-back provisions.

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