On March 5, 2017, Minister of Natural Resources Jim Carr announced, on behalf of Minister of Finance Bill Morneau, that the federal government proposes to extend the 15% federal investment tax credit for flow-through mining expenditures which are deemed to be incurred by individual investors in flow-through shares. Assuming that the proposal becomes law, the credit would be extended for an additional year for flow-through share agreements made before April 1, 2018.
The extension of the credit will assist junior mineral exploration companies in raising capital to finance early stage "grassroots" mineral exploration and will maintain the existing tax incentives for individuals investing in flow-through shares.
The government has resisted making this credit permanent and rather has made the one year extension an annual event since 2004.
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