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For pre-production exploration expenditures, the ITC will continue to apply at the 10 per cent rate for expenditures incurred in 2012. The rate will drop to five per cent for expenditures incurred in 2013, and there will be no ITC for expenditures incurred in subsequent years. For pre-production development expenditures, the 10 per cent rate will apply for expenditures incurred in 2012 and in 2013, and drop to seven per cent for expenditures incurred in 2014 and to four per cent for expenditures incurred in 2015. There will be no ITC in subsequent years. The elimination of this ITC is disappointing because it has been an important incentive for the mining industry to undertake high-risk mineral exploration activity.
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