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

Act current to 2014-03-16

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.

TAX PROVISIONS

Marginal note:Incentive exempt from income tax

 An amount payable to an applicant on account of a development incentive under this Act is exempt from income tax.

  • 1968-69, c. 56, s. 12.

MANPOWER SERVICES

Marginal note:Condition respecting utilization of manpower services
  •  (1) It is a condition precedent to the payment of any amount on account of a development incentive that the applicant keep the Canada Employment and Immigration Commission informed of the employment vacancies and requirements of the applicant in the designated region in which the facility for the establishment, expansion or modernization of which the development incentive was authorized is or is to be situated, and that the applicant further, from time to time, at the request of that Commission or as required by the regulations,

    • (a) discuss with the Commission the long-term plans of the applicant for the recruitment and training of employees in the designated region; and

    • (b) participate in and cooperate with the Commission in respect of any programs of the Commission related to employment counselling, placement and manpower adjustment, mobility and training.

  • Marginal note:Duration of condition

    (2) The condition prescribed by this section shall be effective for the period ending on the day the final payment on account of the development incentive is made or the 31st day of December, 1984, whichever is later.

  • R.S., 1970, c. R-3, s. 13;
  • 1974-75-76, c. 84, s. 2;
  • 1976-77, c. 54, s. 74;
  • 1980-81-82-83, c. 14, s. 2.

LOAN GUARANTEES

Marginal note:Loan guarantees
  •  (1) Upon application therefor to the Minister by an applicant proposing to

    • (a) establish a new facility or to expand or modernize an existing facility, or

    • (b) establish a commercial facility,

    the Minister may, with the concurrence of the Minister of Finance, subject to this Act and upon such terms and conditions as are prescribed by the regulations, authorize the guarantee by Her Majesty in right of Canada of the repayment by the applicant of a proportion of any loan made to him in respect of the establishment, expansion or modernization of the facility or the establishment of the commercial facility and the payment of interest by the applicant on the proportion of the loan so guaranteed.

  • Marginal note:Ineligible facilities

    (2) No loan guarantee may be authorized under this Act in respect of the establishment of a new facility or the expansion or modernization of an existing facility unless

    • (a) a development incentive

      • (i) has been or could be authorized under this Act for the establishment of the facility or the expansion or modernization thereof, or

      • (ii) could not be authorized under this Act for the establishment of the facility or the expansion or modernization thereof by reason only that the Minister is of the opinion that the facility could be established, expanded or modernized without the provision of a development incentive; and

    • (b) the Minister is of the opinion that

      • (i) the applicant could not obtain sufficient financing on reasonable terms for the establishment of the facility or the expansion or modernization thereof without such guarantee, and

      • (ii) in the case of the establishment of a new facility, it will be brought into commercial production on or before the 31st day of December, 1984 and, in the case of the expansion or modernization of a facility, the expanded or modernized facility will be brought into commercial production on or before that date.

  • Marginal note:Ineligible commercial facilities

    (3) No loan guarantee may be authorized under this Act in respect of the establishment of a commercial facility unless

    • (a) the commercial services to be provided are of a class prescribed by the regulations and the facility will be located within an area prescribed by the regulations for the purposes of this section that is within a designated region; and

    • (b) the Minister is of the opinion that

      • (i) the establishment of the commercial facility would make a significant contribution to economic expansion and social adjustment within the designated region,

      • (ii) the capital costs of the commercial facility will exceed such minimum amount as is prescribed by the regulations,

      • (iii) the applicant could not obtain sufficient financing on reasonable terms for the establishment of the commercial facility without such guarantee, and

      • (iv) the commercial facility will be brought into commercial operation on or before the 31st day of December, 1984.

  • Marginal note:Maximum loan a proportion of which may be guaranteed

    (4) No loan guarantee may be authorized under this Act where the amount of the loan to the applicant exceeds 80% of the amount estimated by the Minister to be the total capital costs of establishing, expanding or modernizing the facility or of establishing the commercial facility in respect of which the loan is made minus an amount estimated by the Minister to be the aggregate of any development incentive and all other federal, provincial and municipal grants or other financial assistance given or to be given in connection therewith or for which the applicant would ordinarily have been eligible by reason of the establishment, expansion or modernization of the facility or of the establishment of the commercial facility.

  • Marginal note:Insurance

    (5) A loan guarantee authorized under this Act ceases to be of any force or effect if the lender by whom the loan was made fails to provide to the Minister, at his request or at such times as are provided by the regulations, evidence that the facility or commercial facility in respect of which the guaranteed loan was made is insured to the satisfaction of the Minister or in accordance with the regulations.

  • R.S., 1970, c. 25(2nd Supp.), s. 7;
  • 1974-75-76, c. 84, ss. 3, 4;
  • 1980-81-82-83, c. 14, s. 3.