At the PDAC convention in Toronto today, federal Natural Resources Minister Jonathan Wilkinson announced a proposal to extend the Mineral Exploration Tax Credit (METC) to 2027 at its previous 15% level. It had been set to expire on March 31, 2025.
The METC is part of an essential suite of tools to facilitate mineral exploration investment. According to the Prospectors & Developers Association of Canada, investment in the METC generates a return on investment of 7 times in mineral exploration and related economic activity in Canada. This is especially important given impending US tariffs.
The news has been welcomed cautiously, following calls for longer-term or more permanent extension to the METC, and an increase to 30% to align with a separate Critical Mineral Exploration Tax Credit, which also expires in 2027.
With parliament currently prorogued, questions about how the Canada Revenue Agency can implement the extension by March 31 remain. We await an official announcement and further detail, but in the meantime an overview of the news can be found here: Government extending support for mineral exploration in Canada.