Canada to Extend 15% Mineral Exploration Tax Credit to 2016Theophilos Argitis
Canada’s Conservative government will extend its 15 percent mineral exploration tax credit for one more year to help small mining companies, Finance Minister Joe Oliver announced today.
The tax credit, which has been in place since 2000, applies to investors of junior mining companies that raise equity through flow-through shares. The extension will cost the government about C$35 million ($28 million) in lost tax revenue over the next two years, Oliver said in a statement.
The credit, which was scheduled to expire March 31, 2015, was extended to the same date in 2016.
“During a challenging global economy, in the struggle to secure capital, it has helped keep investment flowing,” the government said in a statement.
Canada also said it will allow costs associated with undertaking environmental studies to be eligible under favorable tax deduction treatment.