Regional Development Incentives Act (R.S.C. 1970, c. R-3)

Act current to 2016-02-03

Determination of Amount of Incentive

Marginal note:Criteria for determining amount of incentive

 Subject to this Act, the Minister may authorize the provision of a development incentive in the maximum amount provided for by this Act or in any lesser amount, and in determining whether to authorize the provision of a development incentive in the maximum amount so provided for or in any lesser amount, the Minister shall take into consideration the following factors:

  • (a) the extent of the contribution that the establishment, expansion or modernization of the facility would make to economic expansion and social adjustment in the designated region;

  • (b) the probable cost to provincial, municipal or other public authorities of providing services or utilities required for or in connection with the facility;

  • (c) the amount or present value of any federal, provincial or municipal assistance given or to be given, other than under this Act, in respect of the establishment, expansion or modernization of the facility;

  • (d) the probable cost of preventing or eliminating any significant air, water or other pollution that could result from the establishment, expansion or modernization of the facility;

  • (e) in the case of any proposal to establish or expand a facility constituting the necessary components of a processing operation, whether the resources to be exploited would be adequate, on a sustained-yield basis, to support the facility together with existing facilities that utilize the same resources; and

  • (f) such other factors relating to the economic and social benefits and costs of the facility as the Minister considers relevant.

  • 1968-69, c. 56, s. 6.

Ineligible Facilities

Marginal note:Ineligible facilities
  •  (1) No development incentive may be authorized under this Act for the establishment, expansion or modernization of any facility if, in the opinion of the Minister,

    • (a) it is probable that the facility would be established, expanded or modernized without the provision of such an incentive; or

    • (b) the establishment, expansion or modernization of the facility would not make a significant contribution to economic expansion and social adjustment within the designated region.

  • Marginal note:Idem

    (2) No development incentive may be authorized under this Act for the establishment, expansion or modernization of any facility the capital costs of which would not, in the opinion of the Minister, exceed such minimum amount as is prescribed by the regulations.

  • 1968-69, c. 56, s. 7.

Limiting Provisions

Marginal note:Servicing expenditures as approved capital costs
  •  (1) In calculating the amount of any development incentive for the establishment, expansion or modernization of any facility, there may be included in the approved capital costs of establishing, expanding or modernizing the facility any capital expenditures made by the applicant to provincial, municipal or other public authorities for the provision of services or utilities required for or in connection with the facility, if the Minister is of the opinion that the expenditures were reasonably and responsibly made, but no such expenditures shall be so included in excess of 20% of the total amount of the approved capital costs of establishing, expanding or modernizing the facility, after deducting from those approved capital costs all federal, provincial and municipal grants or other financial assistance made or to be made in connection therewith or for which the applicant would ordinarily have been eligible by reason of the establishment, expansion or modernization of the facility.

  • Marginal note:Limitation re capital to be employed in the operation

    (2) In calculating the amount of any secondary development incentive for the expansion of any facility, there may be included in the capital to be employed in the operation only such part of that capital as is to be employed in connection with the manufacturing or processing of a product not previously manufactured or processed in the operation.

  • 1968-69, c. 56, s. 8.
Marginal note:Prior contractual commitment
  •  (1) No development incentive may be authorized under this Act for the establishment, expansion or modernization of a facility for which a contractual commitment was made, whether or not the commitment remains in force, before

    • (a) the 1st day of July 1969, or

    • (b) the day on which an application for the development incentive is received by the Minister,

    whichever is the later date.

  • Marginal note:Exception

    (2) Notwithstanding subsection (1), where an application for a development incentive is received by the Minister before the 1st day of January 1970 in respect of a facility for which a contractual commitment was made on or after the 1st day of July 1969, provision of the development incentive may be authorized and the development incentive may be paid in accordance with this Act as if the contractual commitment had not been so made.

  • Marginal note:Time limitation

    (3) No primary development incentive or secondary development incentive may be provided under this Act

    • (a) for the establishment of a facility that is not brought into commercial production until after the 31st day of December, 1984; or

    • (b) in the case of the expansion or modernization of a facility, if the expanded or modernized facility is not brought into commercial production until after the 31st day of December, 1984.

  • Marginal note:Idem

    (3.1) No special development incentive may be provided under this Act

    • (a) for the establishment of a facility that is not brought into commercial production until after the 31st day of December 1973, or

    • (b) in the case of the expansion or modernization of a facility, if the expanded or modernized facility is not brought into commercial production until after the 31st day of December 1973,

    unless, in the opinion of the Minister, the facility or the expanded or modernized facility was not brought into commercial production until after the 31st day of December 1973 for reasons beyond the control of the applicant.

  • Marginal note:Insurance

    (3.2) No development incentive may be provided under this Act unless, at the request of the Minister or at such times as are provided by the regulations, the applicant therefor provides to the Minister evidence that the facility in respect of which the development incentive is authorized is insured to the satisfaction of the Minister or in accordance with the regulations.

  • Marginal note:Where incentive previously authorized

    (4) No development incentive may be authorized for the modernization of any facility in respect of which a development incentive has previously been authorized under this Act.

  • R.S., 1970, c. R-3, s. 9;
  • R.S., 1970, c. 25(2nd Supp.), s. 4;
  • 1974-75-76, c. 84, s. 1;
  • 1980-81-82-83, c. 14, s. 1.

Payment of Incentives

Marginal note:Time for payment of development incentives

 When the Minister is satisfied that a facility for the establishment, expansion or modernization of which a development incentive has been authorized, the amount of which was based on

  • (a) the approved capital costs of establishing, expanding or modernizing the facility, or

  • (b) the approved capital costs of establishing or expanding the facility and the number of jobs created directly in the operation,

has been brought into commercial production or, in the case of a facility for the expansion or modernization of which a development incentive has been authorized, the expanded or modernized facility has been brought into commercial production, the Minister shall pay to the applicant an amount on account of the development incentive not exceeding 80% of the amount estimated by the Minister to be the amount of the development incentive, and the remainder of the incentive shall be paid in such amounts and within such period,

  • (c) not longer than 30 months from the day the facility or the expanded or modernized facility was brought into commercial production, in a case to which paragraph (a) applies and to which paragraph (b) does not apply, or

  • (d) not longer than 42 months from the day the facility or the expanded facility was brought into commercial production, in a case to which paragraph (b) applies,

as are prescribed by the regulations.

  • R.S., 1970, c. R-3, s. 10;
  • R.S., 1970, c. 25(2nd Supp.), s. 5.
Marginal note:Where region ceases to be designated

 Where, before a facility for the establishment of which a development incentive was authorized is brought into commercial production or, in the case of a facility for the expansion or modernization of which a development incentive was authorized, before the expanded or modernized facility is brought into commercial production, the region in which the facility or the expanded or modernized facility is or is to be situated ceases to be a designated region, no amount on account of the development incentive shall be paid under this Act

  • (a) unless the facility or the expanded or modernized facility is brought into commercial production within 18 months after the region ceases to be a designated region; or

  • (b) in any other case, unless the Minister is satisfied that

    • (i) substantial progress was made in establishing, expanding or modernizing the facility before the region ceased to be a designated region, and

    • (ii) after the region ceased to be a designated region, the establishment, expansion or modernization of the facility was completed with all reasonable speed.

  • R.S., 1970, c. R-3, s. 11;
  • R.S., 1970, c. 25(2nd Supp.), s. 6.
 
Date modified: