Ottawa is proposing a one-year extension on the temporary 15% mineral exploration tax credit.

This credit is an incentive available to individuals who invest in flow-through shares, which are used to finance mining exploration. It was reintroduced in 2006 budget and is currently scheduled to expire on March 31, 2007.

This year’s budget proposes to extend the credit for an additional year, until March 31, 2008.

Extension of the credit for a limited period will support continued exploration for new mineral reserves, Ottawa.

The net fiscal cost of this extension is estimated at $75 million over the next two fiscal years.