Mining exploration tax credit for personal income tax

If you conduct grassroots mineral exploration in B.C., you may qualify for the mining exploration tax credit (METC). 

To be eligible, you must incur qualified mining exploration expenses for determining the existence, location, extent or quality of a mineral resource in B.C.

Expenses that qualify for the credit

The credit applies to exploration for all base and precious metals, coal and some industrial minerals.

Qualified mining exploration expenses may include expenses incurred in the course of:

• Prospecting
• Carrying out geological surveys
• Drilling
• Trenching
• Digging test pits
• Preliminary sampling
• Environment studies and community consultations to obtain a right, licence or privilege to determine the existence, location, extent or quality of a mineral resource in B.C.
• Prospecting, drilling, trenching, digging test pits and preliminary sampling to the extent the expenses exceed any revenues resulting from those expenses before the mine comes into production in reasonable commercial quantities

Expenses that do not qualify for the credit

Expenses that do not qualify for the mining exploration tax credit include:

• Drilling expenses for oil and gas
• Mining exploration expenses for oil and gas incurred after February 22, 2024
• Expenses for determining the economic viability or engineering feasibility of the mineral resource (as clarified in Budget 2026)

How the credit is calculated

The credit is calculated as 20% of qualified mining exploration expenses less the amount of any assistance received or receivable. Assistance includes reimbursements you have received or are entitled to receive, as well as grants, subsidies, rebates and forgivable loans.

Mineral exploration in Mountain Pine Beetle affected areas

An enhanced rate of 30% is available for qualified mineral exploration undertaken in prescribed Mountain Pine Beetle affected areas. To view a map of the qualifying Mountain Pine Beetle area, see the detailed area maps (PDF, 30MB) or go to the GeoBC Media Vault.

Claiming the credit

You claim the credit when you file your T1 Income Tax Return, by completing and attaching the British Columbia Mining Exploration Tax Credit (Individuals) form (T88).

To claim a share of a partnership's tax credit, members of a partnership must also file a completed British Columbia Mining Exploration Tax Credit Partnership Schedule (T1249).

You must claim the credit no later than 18 months after the end of the tax year. The credit is fully refundable but must first be applied against total income tax payable. There are no carry-forward or carry-back provisions.

Legislation

The following legislation applies to the METC:

• Income Tax Act (B.C.) Section 25.1
• Mining Exploration Tax Credit Regulation
• Bill 2, Budget Measures Implementation Act, 2026