Ottawa’s 2026 federal budget proposes extending two mineral exploration tax credits for five years, a move the government estimates would provide C$956 million in tax support. Canada’s national prospectors association welcomed the proposal, while British Columbia’s exploration group said companies still need help financing the studies that determine whether a discovery can become a mine.
The budget would extend the 15% Mineral Exploration Tax Credit and the 30% Critical Mineral Exploration Tax Credit to eligible flow-through share agreements signed by March 31, 2032. It would also add antimony to the 30% credit for agreements signed after budget day. Flow-through shares let exploration companies pass eligible expenses to investors, who can claim tax deductions and, where eligible, a credit.
Jeff Killeen, senior director of policy and programs at the Prospectors & Developers Association of Canada, told The Northern Miner that the extension would give explorers more confidence to plan and finance work across several field seasons. The association had sought permanent credits or extensions of at least 10 years.
Financing gap after discovery
Both the national association and British Columbia’s Association for Mineral Exploration had urged Ottawa to expand the Canadian Exploration Expense rules to cover engineering, economic and feasibility studies. Those studies help establish reserves and guide decisions on whether to build a mine. The budget leaves their eligibility unchanged.
“This budget does not address that gap,” Todd Stone, president and CEO of the Association for Mineral Exploration, said in an emailed statement. He called for mineral explorers to receive the same level of support Ottawa is proposing to help early-stage technology companies raise capital.
Power and project financing
The budget also proposes C$424.4 million over four years, beginning in 2027–28, to renew the Canadian Critical Minerals Strategy. The funding would support mining and processing technology, geoscience and priority projects. A separate C$34 million would renew GeoNorth, which provides public geoscience data for northern exploration and infrastructure planning.
For mines and processors that need more electricity, Ottawa proposes extending the Clean Technology and Clean Electricity investment tax credits through 2040 and expanding the electricity credit to cover the highest-voltage transmission lines within each province.
The budget also sets out how the previously announced Canada Strong Fund would work. Ottawa plans to provide C$25 billion over three years for the fund to invest alongside private capital on commercial terms. The budget illustrates how the fund could invest in a critical minerals developer alongside an infrastructure loan. It names no recipient for that example.