Considerations & recommendations for Federal Budget 2026
Recommendation 1
Eliminate the gap in flow-through share (FTS) eligibility between the Canadian Exploration Expense (CEE) and Canadian Development Expense (CDE) categories and follow the commitment outlined in the Canada Strong plan by “expanding eligible activities under CEE to include the costs of technical studies, such as engineering, economic and feasibility studies” that are required to establish mineral reserves and make mine development decisions.
Recommendation 2
Amend the Income Tax Act to make both the Mineral Exploration Tax Credit (METC) and the Critical Mineral Exploration Tax Credit (CMETC) permanent or renew these credits for a minimum of 10 years, with an option to renew the credit for an additional 10 years at the midway point (i.e. 2030). Such a commitment will protect Canadian competitiveness and provide long-term market certainty for industry and investors.
Recommendation 3
Commit a minimum of $30 million per year on an ongoing basis to fund continuation of the Targeted Geoscience Initiative (TGI) program, renewal of the Geo-Mapping for Energy and Minerals (GEMS) program, as well as to: (1) develop comprehensive mineral potential models; (2) expand general accessibility of public geoscience data; and (3) facilitate evidence-based land conservation and protection decisions.
Recommendation 4
Amend section 248(1) of the Income Tax Act by expanding the definition of a “mineral resource” to capture all minerals that are on Canada’s critical minerals list and that are eligible under the CMETC.