British Columbia mining exploration tax credit

A corporation that has incurred qualified mining exploration expenses in British Columbia may qualify for the British Columbia mining exploration tax credit. The corporation must have maintained a permanent establishment in the province at any time in the tax year.

The expenditures have to be incurred before January 1, 2017, for determining the existence, location, extent, or quality of a mineral resource in British Columbia.

Any flow-through mining expenditure renounced under subsection 66(12.6) of the federal Income Tax Act does not qualify for the credit.

The credit is equal to 20% of the amount by which:

• the total qualified mining exploration expenses incurred in the tax year;
  is more than
• the total assistance for qualified mining exploration expenses for the tax year.

A corporation can claim an additional 10% of the total qualified mining exploration expenses incurred after February 20, 2007, in prescribed areas affected by the mountain pine beetle. These expenses must be reduced by the total assistance attributable to them. The prescribed areas affected by the mountain pine beetle were expanded by BC regulation on December 1, 2008.

The credit is refundable, but must first be applied against total tax payable. There are no carry-back or carry-forward provisions.

This credit also applies to partnerships. Taxpayers who are active members of a partnership, other than specified members (such as limited partners), can each claim their proportionate share of the partnership's tax credit.

Claiming the credit

File a completed Schedule 421, British Columbia Mining Exploration Tax Credit, with the return.

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.

For more information about this credit, see the schedules and section 25.1 of the British Columbia Income Tax Act.

On line 673 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of credit you are claiming.

You must claim the credit no later than 36 months after the end of the tax year for which the credit is claimed.

Forms and publications

• Schedule 421, British Columbia Mining Exploration Tax Credit
• Schedule T1249, British Columbia Mining Exploration Tax Credit Partnership Schedule
• Schedule 5, Tax Calculation Supplementary - Corporations
• CIT 006, Mining Exploration Tax Credit

Government partners

• British Columbia (provincial site)