Important: The Mineral Exploration Tax Credit, which was scheduled to expire on December 31, 2017, has been extended to December 31, 2020.
The Manitoba Mineral Exploration Tax Credit is a non-refundable tax credit available to residents of Manitoba who’ve invested in eligible flow-through shares in a qualified mineral exploration company. With flow-through shares, the company selling them can transfer a portion of their expenses to you, the shareholder, ultimately allowing you to claim a tax credit for these expenses. This credit is equal to 30% of your qualifying expenses for the year.
If you don’t need to use your entire credit amount to lower your Manitoba tax payable in 2017, you can carry forward unused amounts for 10 years or back 3 years. You can find your unused credit amount on your most recent notice of assessment or reassessment.
You can claim this tax credit on the T1241 form if you received one of the following two slips, each reporting the qualifying expenses:
- T101: Statement of Resource Expenses (your qualifying expenses will be shown in box 144 of this slip) or
- T5013: Statement of Partnership Income (your qualifying expenses will be shown in box 199 of this slip)
If you have unused credits that you want to apply to a prior year return(s), the amount you apply can’t be more than your Manitoba tax for that year. To carryback your credit to your 2016, 2015, and/or 2014 return(s), you’ll need to send an adjustment request to the Canada Revenue Agency (CRA). Remember, you should wait until you receive your 2017 notice of assessment before making the adjustment request to be sure of the credit amount that can be carried back.
Where do I claim this?
Follow these steps in H&R Block’s 2017 tax software:
Before you begin, make sure that you told us that you lived in Manitoba on December 31, 2017.
- On the PREPARE tab, click the IN THIS SECTION icon.
- Under Investments (shares, securities, property, tax shelters, etc.) you bought or sold in 2017, click the Add this button.
- Click the PENSION PLANS AND INVESTMENTS icon. You'll find yourself here:
- Under the RESOURCE INCOME AND CREDITS heading, select the checkbox labelled Manitoba mineral exploration tax credit (T1241), then click Continue.
- When you arrive at the page for your Manitoba mineral exploration tax credit, enter your information into the tax software.