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, 2020, 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.

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.

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 in prescribed mountain pine beetle affected areas. These expenses must be reduced by the total assistance attributable to them.

The credit is fully refundable, but must first be applied against total tax payable.

Claiming the credit

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

Starting January 1, 2017, the period for claiming the credit for a tax year is reduced from 36 to 18 months after the end of that tax year.

To claim your proportionate share of the partnership's tax credit, 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.

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

Government partners

• Bulletin CIT 006, Mining Exploration Tax Credit
• British Columbia (provincial site)

Date modified:

2017-04-20