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. Budget 2026 proposes to allow the CRA to reduce the amount renounced by a corporation in excess of the exploration expenses incurred by the corporation, effective August 4, 2023. The change is subject to the approval of the legislature.

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). You must claim the credit within one year after the filing due date of your T1 Income Tax Return for the tax year.

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.

Legislation

The following legislation applies to the B.C. MFTS tax credit:

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