Of course, Budget 2013 is not exclusively about integrity and
tightening and does include a few "goodies."
Extension of the Mineral Exploration Tax Credit for
Flow-Through Share Investors
Budget 2013 proposes to extend the flow-through mining tax
credit that has been in place for a number of years. Annual
extensions of this 15 per cent federal tax credit have been a
feature of federal budgets since 2007.
The credit is available to purchasers of flow-through shares
under flow-through share agreements entered into on or before March
31, 2014. It is available only in respect of a certain subset of
Canadian exploration expenses relating to specified kinds of
surface or "grassroots" exploration.
Flow-through funds raised in 2014 by mining exploration
companies on or before March 31, 2014 can be expended on eligible
expenditures prior to the end of 2015, and under the look-back
rule, can be renounced to purchasers for deduction and credit in
The measure is intended as an additional stimulus to surface
exploration in Canada. Similar tax measures are in place in
Ontario, British Columbia, Manitoba and Saskatchewan.
Accelerated Capital Cost Allowance
Budget 2013 continues its focus on goods manufactured or
processed in Canada and encourages investments in low-emission or
no-emission energy generation equipment by providing favorable CCA
treatment for certain assets.
Manufacturing and Processing Machinery and
Subject to the half year rule, the accelerated 50 per cent
straight-line CCA rate has been extended for two years for
machinery and equipment that is used primarily in Canada for the
manufacturing or processing of goods for sale or lease. This
measure will apply to eligible machinery or equipment acquired
after March 18, 2007 and before 2016.
Clean Energy Generation Equipment
Budget 2013 broadens the scope of clean energy generation and
conservation equipment, which currently enjoys an accelerated 50
per cent declining-balance CCA rate. Eligibility requirements will
be expanded for biogas production equipment to include a larger
pool of organic waste, such as pulp and paper waste and waste
water, beverage industry waste and wastewater and separated
organics from municipal waste. Additionally, restrictions will be
removed such that all types of cleaning and upgrading equipment
used to treat eligible gases from waste will qualify for the
favorable CCA treatment. These measures will apply to eligible
equipment acquired on or after March 21, 2013.
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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