B.C. mining flow-through share income tax credit

The B.C. mining flow-through share (BC MFTS) tax credit allows individuals who invest in flow-through shares to claim a non-refundable tax credit, equal to 20% of their B.C. flow-through mining expenditures.

On this page

• Who’s eligible for the tax credit
• How to claim the credit
• Deadline for claiming the credit
• Legislation

Who’s eligible for the tax credit

You’re eligible for the BC MFTS tax credit if you meet all of the following:

• You’re an individual (not a corporation, estate, or trust)
• You’ve invested in flow-through shares from a corporation, either directly or through a partnership
• The corporation has renounced B.C. flow-through mining expenditures to you, either directly or through a partnership

What qualifies as B.C. flow-through mining expenditures

B.C. flow-through mining expenditures are specific exploration expenses:

• Incurred after July 30, 2001, by a corporation issuing the flow-through shares, and
• Renounced under a written agreement by the corporation to the investors

Budget 2026 allows the CRA to reduce the renounced amount if it is more than the exploration expenses incurred by the corporation, effective August 4, 2023.

How to claim the credit

Receive an information slip from the corporation

When you enter into a flow-through share agreement with a corporation, you’ll receive an information slip showing the expenditures renounced to you for the tax year. The information slip is either a:

• Statement of Resource Expenses (T101), or
• Statement of Partnership Income (T5013)

Complete the B.C. Mining Flow-Through Share Tax Credit form

Complete the British Columbia Mining Flow-Through Share Tax Credit form (T1231) using the information slip you received. Enter the amount of the credit you’re claiming on the British Columbia Tax form (BC428).

Claim the credit on your T1 Income Tax Return

Claim the credit by submitting the information slip and completed T1231 form with your T1 Income Tax Return.

The tax credit is non-refundable. You can carry any unused credit at the end of a tax year back 3 years or forward 10 years.

Deadline for claiming the credit

You must submit the T1231 and claim the credit within 12 months after your filing due date for the tax year for which you received the T101 or T5013 information slip. 

Even if you're carrying the credit forward to a future tax year, you still need to submit the T1231 by this deadline.

Legislation

The following legislation applies to the BC MFTS tax credit:

• Income Tax Act (B.C.) Section 4.721
• Bill 2, Budget Measures Implementation Act, 2026