The mineral exploration tax credit is available to investors in flow-through shares. This credit is equal to 15 per cent of specified mineral exploration expenses incurred in Canada and renounced to flow-through share investors. Budget 2010 proposed to extend eligibility for the mineral exploration tax credit for one year, to flow-through share agreements entered into on or before March 31, 2011.
Under the current “look-back” rule, funds raised in one calendar year with the benefit of the credit can be spent on eligible exploration up to the end of the following calendar year. For example, funds raised with the credit during the first three months of 2011 can support eligible exploration until the end of 2012.
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