How much funding can be received?

Funds up to 30% of admissible expenses.

What is the deadline to apply?

The deadline to apply is 2027-03-31T23:59:59Z.

Who are the financial supporters of the Tax incentives for mining and exploration?

Tax incentives for mining and exploration is funded by Canada Revenue Agency (CRA)

What are Tax incentives for mining and exploration's eligibility criterias?

Must be a mining or exploration company operating in Canada. Eligible expenses must be incurred for qualified mining or mineral exploration activities.

Tax incentives for mining and exploration

Last Update: July 17, 2025

Canada

Federal and provincial tax incentives support mining and exploration activities

Tax incentives for mining and exploration at a glance

Eligible Funding

Up to 30% of project cost

Timeline

Open Date : April 8, 2022
Closing date : March 31, 2027

Financing Type

Tax Credits

Eligible Industries

Mining, quarrying, and oil and gas extraction

Grant Providers

Canada Revenue Agency (CRA)

Status

Open

Overview of the Tax incentives for mining and exploration program

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.

Financing terms and conditions

Canadian exploration expenses (CEEs) are 100% deductible in the year incurred; unused amounts can be carried forward indefinitely or transferred to investors through flow-through shares.
Canadian development expenses (CDEs) can be deducted at a 30% declining balance; unused balances can be carried forward indefinitely or transferred to investors through flow-through shares (excluding cost of a Canadian mineral property).
The Mineral Exploration Tax Credit (METC) offers a 15% non-refundable tax credit on eligible exploration expenses, claimable against federal income tax, and can be carried back 3 years or forward 20 years.
The Critical Mineral Exploration Tax Credit (CMETC) provides a 30% non-refundable tax credit for specified mineral exploration expenses renounced to flow-through share investors.

Eligible projects & activities

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.

Examples of admissible projects:

$ 88,000

Geological survey for nickel and copper deposits in northern terrain

$ 153,000

Modernization of copper ore mill for increased energy efficiency

$ 290,000

Opening a lithium pilot mine with on-site processing plant

$ 110,000

Flow-through share issue for cobalt exploration and drilling program

$ 63,500

Surface exploration campaign for rare earth elements in clay

$ 122,500

Post-mining environmental reclamation for abandoned gold mine site

Eligibility criteria of the Tax incentives for mining and exploration program

The applicant must be a corporation whose principal business is exploration, mining, or mineral processing.
The expenses must be incurred in Canada for eligible mining, exploration, or development activities.
For flow-through shares, the corporation issuing the shares does not need to be Canadian, but investors must be subject to Canadian taxes and expenses must be incurred in Canada on qualified activities.
For the Critical Mineral Exploration Tax Credit, the project must target at least one of the specified eligible critical minerals, as certified by a qualified person under National Instrument 43-101.

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

How to apply to the Tax incentives for mining and exploration program

Assess eligibility for tax incentives

Review federal and provincial/territorial mining tax incentive programs
Assess eligibility based on mining activities and expenditures
Identify relevant tax credits and deductions for your company

Compile supporting documentation

Gather documentation on mining taxes and royalties paid
Compile records of capital asset purchases and associated costs
Prepare details of exploration and development expenses

Classify and allocate expenditures

Classify expenses by type (e.g., exploration, development, environmental trust)
Allocate expenses to the appropriate deduction or credit (e.g., CEE, CDE, METC, CMETC)
Ensure a qualified professional certifies expenditures for critical mineral credits

Prepare and complete tax return

Complete required tax forms detailing deductions and eligible credits
Attach supporting documentation to the tax return
Verify all information for compliance with the Income Tax Act

Submit application and documentation

Submit completed tax return and required documentation to the Canada Revenue Agency
Submit relevant forms to provincial or territorial authorities if required

Await results from authorities

Await review and processing by tax authorities
Respond to any requests for additional information

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.