Vancouver, B.C. — February 16, 2016 — The Association for Mineral Exploration British Columbia (AME) today supports B.C.’s projected balanced budget for 2016, which includes important incentives for the province’s mineral exploration and development industry.
The budget extends the BC Mining Exploration Tax Credit (BC METC) through January 1, 2020 at its regular rate of 20% and enhanced rate of 30% for areas affected by the mountain pine beetle. The tax credit had been originally set to expire on December 31, 2016. The government also renewed the BC Mining Flow-Through Share tax credit, which had expired on December 31, 2015.
“During this protracted downturn in the mineral exploration and development industry, companies need fiscal incentives that sustain grassroots exploration,” says Diane Nicolson, Chair of AME. “These two important tax incentives allow companies to advance mineral exploration projects that could become mines and generate tax revenues in the future. These tax credits benefit both the company and the region where exploration dollars are being spent and enhance mineral exploration companies’ ability to raise venture capital, especially during these tough times.”
“We further encourage the BC government to work with the federal government to ensure that the tax incentives announced today are complemented with changes to the definition of Canadian Exploration Expenses (CEE) to include costs incurred for environmental studies or community consultations related to mineral exploration,” says Gavin C. Dirom, President & CEO of AME. “Currently, company expenses related to these important activities are generally not CEE-eligible.”
“The incentives announced today will help sustain the industry during these challenging times while committing to a balanced budget,” notes Dirom. “We thank the BC government for recognizing the key role of the mineral exploration and development industry as part of a diverse provincial economy.”
AME is the lead association for the mineral exploration and development industry based in British Columbia. Established in 1912, AME represents, advocates, protects and promotes the interests of thousands of members who are engaged in mineral exploration and development in B.C. and throughout the world. AME encourages a safe, economically strong and environmentally responsible industry by providing clear initiatives, policies, events and tools to support its membership.