B.C. Mining Flow-Through Share Income Tax Credit
The B.C. mining flow-through share (B.C. MFTS) tax credit allows individuals who invest in flow-through shares to claim a non-refundable tax credit of 20% of their B.C. flow-through mining expenditures.
B.C. flow-through mining expenditures are specific exploration expenses incurred after July 30, 2001 and renounced by a corporation issuing the flow-through shares.
Currently, the expiry date for the B.C. MFTS tax credit is December 31, 2018.
Budget 2019 proposes to make the B.C. MFTS permanent by making B.C. flow-through mining expenditures incurred after 2018 eligible for the credit.
Claiming the Credit
You can claim the credit when you file your T1 Income Tax Return, using the British Columbia Mining Flow-Through Share Tax Credit form (T1231). Enter the amount of the credit you’re claiming on the British Columbia Tax form (BC428).
The tax credit is non-refundable. Any unused credit at the end of a tax year may be carried back 3 years or forward 10 years.
The following legislation applies to the B.C. MFTS tax credit: