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

Act current to 2014-10-27

DESIGNATION OF REGIONS

Marginal note:Designation of regions
  •  (1) Subject to subsection (2), the Governor in Council, after consultation with the government of any province or provinces, may for the purposes of this Act by order designate as a designated region, for the period set out in the order, any region comprising the whole of that province or those provinces, or any portion thereof not less than 12 500 square kilometres in size, that is determined to require special measures to facilitate economic expansion and social adjustment.

  • Marginal note:Criteria for designation

    (2) A region may be designated pursuant to subsection (1) only if the Governor in Council, upon the report of the Minister, is satisfied that

    • (a) existing opportunities for productive employment in the region are exceptionally inadequate; and

    • (b) the provision of development incentives under this Act for the establishment of new facilities or the expansion or modernization of existing facilities in the region will make a significant contribution to economic expansion and social adjustment within the region.

  • R.S., 1970, c. R-3, s. 3;
  • 1976-77, c. 55, s. 7.

DEVELOPMENT INCENTIVES

Authorization of Incentives

Marginal note:Incentives for new and existing facilities

 Upon application therefor to the Minister by an applicant proposing to establish a new facility or to expand or modernize an existing facility in a designated region, the Minister may authorize the provision to the applicant, subject to this Act and upon such terms and conditions as are prescribed by the regulations, of

  • (a) a primary development incentive by way of financial assistance to the applicant for the establishment, expansion or modernization of the facility;

  • (b) in the case of a proposal to establish a new facility or to expand an existing facility to enable the manufacturing or processing of a product not previously manufactured or processed in the operation, a secondary development incentive by way of additional financial assistance to the applicant for the establishment of the new facility or the expansion of the existing facility for that purpose; and

  • (c) a special development incentive by way of financial assistance to the applicant for the establishment, expansion or modernization of the facility.

  • R.S., 1970, c. R-3, s. 4;
  • R.S., 1970, c. 25(2nd Supp.), s. 2.

Maximum Amounts

Marginal note:Maximum primary development incentive
  •  (1) The amount of a primary development incentive shall be based on the approved capital costs of establishing, expanding or modernizing the facility in respect of which the primary development incentive is authorized and shall not exceed

    • (a) 20% of those approved capital costs, or

    • (b) $6,000,000,

    whichever is the lesser amount.

  • Marginal note:Maximum secondary development incentive

    (2) The amount of a secondary development incentive shall be based on the approved capital costs of establishing or expanding the facility in respect of which the secondary development incentive is authorized and on the number of jobs created directly in the operation and shall not exceed

    • (a) 5% of those approved capital costs,

    plus

    • (b) $5,000 for each job determined by the Minister to have been created directly in the operation.

  • Marginal note:Maximum special development incentive

    (3) The amount of a special development incentive shall be based

    • (a) on the approved capital costs of establishing, expanding or modernizing the facility in respect of which the special development incentive is authorized, or

    • (b) where such incentive is authorized in respect of a new facility or for the expansion of an existing facility to enable the manufacturing or processing of a product not previously manufactured or processed in the operation, on the approved capital costs of establishing or expanding the facility and on the number of jobs created directly in the operation,

    and shall not exceed,

    • (c) in a case to which paragraph (a) applies and to which paragraph (b) does not apply, 10% of those approved capital costs, or

    • (d) in a case to which paragraph (b) applies,

      • (i) 10% of those approved capital costs,

      plus

      • (ii) $2,000 for each job determined by the Minister to have been created directly in the operation.

  • Marginal note:Maximum incentive or combined incentive in certain cases

    (4) No development incentive or combination of development incentives authorized in respect of a new facility or for the expansion of an existing facility to enable the manufacturing or processing of a product not previously manufactured or processed in the operation shall exceed the lesser of

    • (a) $30,000 for each job determined by the Minister to have been created directly in the operation, and

    • (b) one-half of the capital to be employed in the operation.

  • R.S., 1970, c. R-3, s. 5;
  • R.S., 1970, c. 25(2nd Supp.), s. 3.