The Ontario government's new 2023 Fall Economic Outlook and Fiscal Review contains an improved tax benefit aimed at boosting critical mineral exploration in the province.
The Ontario Economic Outlook was presented at Queen's Park Thursday by Ontario Finance Minister Peter Bethlenfalvy and included an enhanced tax benefit for investing in active mining exploration in Ontario, said the government news release.
Currently in Ontario, people who invest in mining exploration companies working on projects in Ontario can earn a five per cent refundable tax credit on their investments. Eligibility will be expanded to include specified critical mineral exploration expenditures that are eligible for the federal Critical Mineral Exploration Tax Credit, said the release.
The idea of flow-through shares is to make mining investments more attractive to investors because of the refundable tax credits that are offered on both a provincial and federal levels.
Ontario’s Critical Minerals Strategy was launched in 2022 to promote the exploration, mining and refining of specific minerals related to sustainable development of environmentally sound industries such as electric vehicles.
Thursday economic statement described the benefit as follows:
“Proposing to enhance the Ontario Focused Flow-Through Share Tax Credit eligibility to help stimulate critical mineral exploration and improve access to capital for small exploration companies. If approved, the change would start with the 2023 tax year and add $12 million per year in tax credit support to Ontario’s critical minerals mining industry.”
