Categories: General Market Commentary
Topics: General Market Commentary

Canada’s federal govt extends 15% METC tax credit for another year

March 6, 2017

Canada’s federal govt extends 15% METC tax credit for another year

BY: HENRY LAZENBY 
CREAMER MEDIA DEPUTY EDITOR: NORTH AMERICA

 

TORONTO (miningweekly.com) – Canada’s federal government has extended the 15% Mineral Exploration Tax Credit (METC) until end-March 2018.

The METC helps junior mineral exploration companies raise capital by providing an incentive to individual investors in flow-through shares issued to finance "grassroots" mineral exploration.

This credit is in addition to the deduction provided to the investor for the exploration expenses "flowed through" from the company that issued the shares.

Natural Resources Minister Jim Carr announced the extension of the tax incentive during a media reception of the Prospectors and Developers Association of Canada’s (PDAC’s) eighty-fifth yearly convention.

“The tax credit is for early-stage explorers and supports their future prosperity. It starts with flow-through shares, which about 250 companies issued in 2015, and which about 4 000 investors bought.

The METC was scheduled to expire on March 31 under the previous budget.

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