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ARTICLE · 10 NOVEMBER 2026

Budget 2026: Natural Resources And Clean Energy Measures

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Budget 2026 introduces significant amendments to Canada's Income Tax Act affecting natural resources and clean energy sectors. The budget extends key mineral exploration tax credits through 2032, expands clean energy investment tax credits to 2040, and introduces new tax treatment for helium exploration and development expenses. These measures aim to provide greater investment certainty while broadening eligibility for preferential tax provisions across the energy and natural resources industries.

CanadaTax
Rini Rashid
Rini Rashid
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Budget 2026,1 tabled November 5, 2026, proposes a number of amendments to the Income Tax Act (Canada) (the “Tax Act”) to update existing environmental tax measures and introduce modest new measures. While Budget 2026 responds to some industry demands by increasing investment certainty with the extension of certain key tax credits, and expanding the scope of certain other preferential tax provisions, it leaves other industry demands unfulfilled.

Mineral Exploration Tax Credit (“METC”) and Critical Mineral Exploration Tax Credit (“CMETC”)

Budget 2026 proposes to extend both the METC and the CMETC, first introduced in 2022, by a further five years, to flow-through share agreements entered into on or before March 31, 2032. The 30% CMETC is expanded to include antimony as an eligible critical mineral. This applies to expenditures renounced under eligible flow-through share agreements entered into after Budget Day2 and on or before March 31, 2032.

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