Tax Credits – Mining Exploration Tax Credit (METC)

If you are an individual, please visit Personal Income Tax - Mining Exploration Tax Credit.

Corporations and active members of partnerships conducting grassroots mineral exploration in British Columbia may qualify for the Mining Exploration Tax Credit (METC).

The corporation or partnership must incur qualified mining exploration expenses before January 1, 2017 for determining the existence, location, extent, or quality of a mineral resource in British Columbia. The credit applies to exploration for all base and precious metals, coal and some industrial minerals. Drilling expenses for oil and gas do not qualify. For more detailed information on qualifying minerals, contact the Canada Revenue Agency at 1-800-663-1511.

Exploration expenses may include expenses incurred in the course of prospecting, carrying out geological surveys, trenching, digging test pits, or preliminary sampling.

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.

After February 20, 2007, an enhanced rate of 30% is available for qualified mineral exploration undertaken in prescribed Mountain Pine Beetle affected areas. The prescribed Mountain Pine Beetle affected area has been expanded effective December 1, 2008.  Please see the Regulation for more information.

To view a map of the expanded qualifying Mountain Pine Beetle area, please see the overview map or the detailed area maps.

For more information on the METC, please see Bulletin CIT 006, Mining Exploration Tax Credit, and our METC Frequently Asked Questions.

Claiming the credit

To claim the credit, file a completed Schedule 421, British Columbia Mining Exploration Tax Credit with your T2 Corporation Income Tax Return. Enter the amount of credit you are claiming on line 673 of Schedule 5, Tax Calculation Supplementary - Corporations.

To claim their proportionate share of the partnership's tax credit, members of a partnership must also file a completed Schedule T1249, British Columbia Mining Exploration Tax Credit Partnership Schedule.

You must claim the credit no later than 36 months after the end of the tax year for which the credit applies. The credit is fully refundable, but must first be applied against total income tax payable. There are no carry-back or carry-forward provisions.

Legislation