Flow-Through Share Tax Credit for Canadian mining.
Federal METC + provincial credits stacked. Models the after-tax cost of FTS investments in TSX-V mining juniors.
— Net after-tax cost
$5,000
Gross FTS$10,000
Federal deduction$3,300
Federal METC (15%)$1,500
Provincial credit$1,700
Total tax savings$5,000
Effective cost %50%
Methodology: Flow-through expenditures are renounced to the shareholder and deducted at 100% against income; the federal Mineral Exploration Tax Credit (METC) is a separate 15% credit on top of that deduction. Provincial METC stacks again. Quebec provides additional 10% META for exploration in remote areas. Corporations use different deduction mechanics. Not tax advice. Consult a CPA who specializes in flow-through shares.