Open
Tax incentives for mining and exploration
Federal and provincial tax incentives support mining and exploration activities
Last Update: March 4, 2026
Funding available
Up to 30% of project cost
Timeline
- Open Date : April 8, 2022
- Closing date : March 31, 2027
Location
Canada
Overview
Canada's tax incentives for mining and exploration provide significant federal and provincial tax credits—up to 30% for eligible critical mineral exploration expenses—aimed at reducing tax burdens for companies and investors engaged in mineral exploration, development, and processing activities. Eligible activities include exploration, mine development, equipment investment, and environmental reclamation, with special credits available for flow-through share investments and expenditures targeting critical minerals.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Reduce environmental footprint
- Conduct research or evaluation activities
Eligible Funding
- Up to 30% of project cost
Timeline
- Open Date : April 8, 2022
- Closing date : March 31, 2027
Eligible candidates
Eligible Industries
- Mining, quarrying, and oil and gas extraction
Location
- Canada
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Canadians
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Exploration of mineral resources, including prospecting and surface-level surveys for metals and minerals.
- Development and expansion of mining projects, including opening new mines or extending existing ones.
- Mineral processing activities such as concentrating, smelting, and refining minerals.
- Environmental reclamation projects related to mining operations.
- Exploration and development projects targeting critical minerals such as lithium, nickel, copper, and other listed eligible resources.
Eligibility
Who is eligible?
- Mining companies involved in mineral exploration, concentrating, smelting, and refining
- Oil and gas companies holding qualifying capital assets
- Corporations whose principal business is exploration, mining, or mineral processing (Principal-Business Corporations)
- Canadian mining companies with exploration and development activities inside and outside of Canada
- Individual investors who purchase flow-through shares from mining companies for eligible expenses
Eligible expenses
- Costs incurred for prospecting and conducting geological, geophysical, or geochemical surveys from or above the earth's surface for mineral exploration.
- Canadian exploration expenses (excluding those involved in bringing a new mine into production, such as removing soil or sinking a mine shaft beginning in 2018).
- Canadian development expenses, including costs for sinking or excavating a mine shaft, main haulage way, or similar underground work after a mine comes into production, as well as mine development before production and the cost of acquiring a Canadian mineral property.
- Royalties and mining taxes paid to a province or territory for mineral resource income.
- Depreciation of capital assets used to earn resource income (capital cost allowances).
- Contributions to qualifying environmental trusts to support mine reclamation.
- Exploration and development costs incurred outside Canada (foreign resource expenses) claimed on a country-by-country basis.
- Flow-through mining expenditures (FTMEs) related to exploration for the mineral exploration tax credit (METC).
- Flow-through critical minerals mining expenditures for the critical mineral exploration tax credit (CMETC), as certified for exploration projects primarily targeting eligible minerals.
Eligible geographic areas
- All provinces and territories in Canada
Additional information
- Unused balances for certain deductions and credits, such as Canadian exploration expenses and Canadian development expenses, can be carried forward indefinitely.
- The value of federal tax incentives may vary for taxpayers depending on their province or territory of residence due to differences in marginal tax rates and additional provincial or territorial tax credits.
- Flow-through shares allow some expenses to be renounced to investors, transferring tax benefits from corporations to individuals.
- Accelerated capital cost allowances for mining were phased out from 2017 to 2020.
Contacts
Frequently Asked Questions about the Tax incentives for mining and exploration Program
Here are answers to the most common questions about the Tax incentives for mining and exploration. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Tax incentives for mining and exploration?
Canada's tax incentives for mining and exploration provide significant federal and provincial tax credits—up to 30% for eligible critical mineral exploration expenses—aimed at reducing tax burdens for companies and investors engaged in mineral exploration, development, and processing activities. Eligible activities include exploration, mine development, equipment investment, and environmental reclamation, with special credits available for flow-through share investments and expenditures targeting critical minerals.
How much funding can be received?
Tax incentives for mining and exploration Funds up to 30% of admissible expenses.
What is the deadline to apply?
The application deadline for this grant program is **March 31, 2027**. Applicants must submit their complete application before this date to be considered for funding.
Who is eligible for the Tax incentives for mining and exploration program?
To be eligible for the Tax incentives for mining and exploration program, you must:
Must be a mining or exploration company operating in Canada.
Eligible expenses must be incurred for qualified mining or mineral exploration activities.
What expenses are eligible under Tax incentives for mining and exploration?
Exploration of mineral resources, including prospecting and surface-level surveys for metals and minerals.
Development and expansion of mining projects, including opening new mines or extending existing ones.
Mineral processing activities such as concentrating, smelting, and refining minerals.
Environmental reclamation projects related to mining operations.
Exploration and development projects targeting critical minerals such as lithium, nickel, copper, and other listed eligible resources.
Who can I contact for more information about the Tax incentives for mining and exploration?
You can contact Canada Revenue Agency (CRA) by email at itrulingsdirectorate@cra-arc.gc.ca.
Where is the Tax incentives for mining and exploration available?
The Tax incentives for mining and exploration program is available across Canada.