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Income Tax Act 2007

Deductions - Mineral mining expenditure

DU 2: Mining expenditure: rehabilitation expenditure

You could also call this:

“Tax deductions for miners who repair land after mining”

If you are a mineral miner, you can get money back for the costs of fixing up the land after mining. This is called mining rehabilitation expenditure. You can claim this money back in the same year that you spend it.

If you spend money on rehabilitation and end up losing money that year because of it, you might be able to get some tax money back. You can learn more about this in section LU 1.

You are allowed to claim this money back even if it would normally be considered a capital expense. However, you still need to follow other general rules about claiming expenses.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514095.

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Money and consumer rights > Taxes
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DU 1: Mining expenditure: prospecting and exploration expenditure, or

“Deductions for mineral miners' prospecting and exploration costs”

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DU 3: Acquisition of land for mining operations, or

“Deduction rules for mineral miners buying land for mining operations”

Part D Deductions
Mineral mining expenditure

DU 2Mining expenditure: rehabilitation expenditure

  1. A mineral miner is allowed a deduction for mining rehabilitation expenditure.

  2. The deduction is allocated to the income year in which the mineral miner incurs the amount of mining rehabilitation expenditure.

  3. If a mineral miner has a net mining loss for a tax year after taking into account an amount of mining rehabilitation expenditure incurred in relation to a permit area, they may have a tax credit for the amount under section LU 1 (Tax credits for mineral miners) for the corresponding income year.

  4. This section supplements the general permission and overrides the capital limitation. The other general limitations still apply.

Notes
  • Section DU 2: replaced, on (applying for the 2014–15 and later income years), by section 41(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).