Mining Exploration Tax Credit (METC)
The mining exploration tax credit (METC) is for eligible corporations, and corporations that are active members of partnerships conducting grassroots mineral exploration in B.C.
To be eligible, the corporation or partnership must incur qualified mining exploration expenses for determining the existence, location, extent or quality of a mineral resource in B.C.
Offered by Province of British Columbia
Amount
20% of qualified mining exploration expenses less any assistance received or receivable; enhanced rate of 30% for qualified mineral exploration in prescribed Mountain Pine Beetle affected areas; fully refundable
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Who can apply
- The mining exploration tax credit (METC) is for eligible corporations
- Corporations that are active members of partnerships conducting grassroots mineral exploration in B.C
- An active member of a partnership includes a corporation that is engaged in a business similar to that carried on by the partnership
- Limited partners are not eligible to claim the credit
- To be eligible, the corporation or partnership must incur qualified mining exploration expenses for determining the existence, location, extent or quality of a mineral resource in B.C
- The credit applies to exploration for all base and precious metals, coal and some industrial minerals
- You must claim the credit no later than 18 months after the end of the tax year
About the funding
The credit is calculated as 20% of qualified mining exploration expenses less the amount of any assistance received or receivable. Assistance includes reimbursements a taxpayer has received or is entitled to receive, as well as grants, subsidies, rebates and forgivable loans.
Mineral exploration in Mountain Pine Beetle affected areas
An enhanced rate of 30% is available for qualified mineral exploration undertaken in prescribed Mountain Pine Beetle affected areas.
The credit is fully refundable but must first be applied against total income tax payable. There are no carry-back or carry-forward provisions.
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The credit applies to exploration for all base and precious metals, coal and some industrial minerals.
Qualified mining exploration expenses may include expenses incurred in the course of:
- Prospecting
- Carrying out geological surveys
- Drilling
- Trenching
- Digging test pits
- Preliminary sampling
- Environment studies and community consultations to obtain a right, licence or privilege to determine the existence, location, extent or quality of a mineral resource in B.C.
- Prospecting, drilling, trenching, digging test pits and preliminary sampling to the extent the expenses exceed any revenues resulting from those expenses before the mine comes into production in reasonable commercial quantities
Claimed through the Canada Revenue Agency on your corporate tax return.