Industrial and Regional Development Regulations (SOR/83-599)

Regulations are current to 2017-09-27

Industrial and Regional Development Regulations

SOR/83-599

INDUSTRIAL AND REGIONAL DEVELOPMENT ACT

FINANCIAL ADMINISTRATION ACT

Registration 1983-07-15

Regulations Respecting Industrial and Regional Development

P.C. 1983-2228 1983-07-15

His Excellency the Governor General in Council, on the recommendation of the Minister of Industry, Trade and Commerce and Minister of Regional Economic Expansion and the Treasury Board, pursuant to section 16 of the Industrial and Regional Development ActFootnote *and section 52 of the Financial Administration Act, is pleased hereby to make the annexed Regulations respecting industrial and regional development.

PART IShort Title

 These Regulations may be cited as the Industrial and Regional Development Regulations.

PART IIInterpretation

 In these Regulations,

Act

Act means the Industrial and Regional Development Act; (Loi)

applicant

applicant means an eligible person or commercial operation that makes an application under the Act; (requérant)

application

application means a written request by an applicant to the Minister for assistance under the Act; (demande)

capital costs

capital costs means the direct costs of design, acquisition, construction, expansion, modification, conversion, transportation, installation and insurance, during construction, of assets, incurred and paid for by the applicant, and includes the cost of directly related infrastructure development, but does not include

  • (a) the cost of land,

  • (b) costs related to assets that, according to generally accepted accounting principles, would normally be considered a charge against income in the year in which they were acquired,

  • (c) the cost of any motor vehicle unless the vehicle is used primarily on the site, or between two or more sites, of a project or activity receiving assistance under the Act,

  • (d) goodwill, or

  • (e) the cost of any asset to the extent that it exceeds the fair market value of the asset; (coût d’immobilisation)

commencement of commercial production

commencement of commercial production means the date on which

  • (a) a facility or a part of a facility that has been established, expanded or modernized with assistance under the Act has been utilized for not less than 30 continuous working days in the provision of marketable services or in the production in commercial volume of marketable goods, and

  • (b) assets accounting for more than 50% of the capital costs to which the Minister has contributed, or agreed to contribute, are used in the facility and will continue to be so used for the foreseeable future; (début de la production commerciale)

control period

control period means a period of 24 months, or such longer period as the Minister may specify in writing, beginning with the commencement of commercial production; (période de contrôle)

equity

equity means, in relation to an applicant, the aggregate of

  • (a) the applicant’s

    • (i) share capital,

    • (ii) proprietor’s capital accounts, or

    • (iii) partner’s capital accounts,

  • (b) the applicant’s earned, contributed or other surplus,

  • (c) the applicant’s deficit accounts,

  • (d) loans to the applicant by shareholders if the loans are subordinated to all other liabilities for a period specified by the Minister, and

  • (e) where the Minister agrees, loans to the applicant by persons other than shareholders, if the loans are subordinate to all other liabilities for a period specified by the Minister,

less any amounts included in paragraphs (a) to (e) that, in the opinion of the Minister, unreasonably inflate net worth; (avoir propre)

facility

facility means any structure, machine, equipment or other necessary physical component of a commercial operation; (établissement)

infrastructure development

infrastructure development means an activity that provides a framework for the establishment, modernization or expansion of a commercial operation and includes the construction of roads, sewers and water treatment plants; (développement d’une infrastructure)

manufacturing or processing operation

manufacturing or processing operation means an operation in which goods, products, commodities or wares are created, fabricated, refined or made more marketable and includes

  • (a) the production of advanced software systems,

  • (b) the processing by roasting, leaching or smelting of mineral concentrates to produce metals,

  • (c) the converting of wood pulp into paperboard or paper,

  • (d) the processing of a material that results in a significant chemical change to the principal component of the material being processed, and

  • (e) the application of biological agents to the processing of materials, through innovative scientific or engineering activities, for the purpose of providing goods and services,

but does not include

  • (f) the merchandising of goods, products, commodities or wares unless the merchandising is an integral part of the operation by which they are created, fabricated, refined or made more marketable,

  • (g) the growing, catching or harvesting of any natural or cultivated product of nature,

  • (h) the extraction of minerals by any method or the processing of ores to form mineral concentrate,

  • (i) the production of energy unless it is produced as an integral part of the operation by which goods, products, commodities or wares are created, fabricated, refined or made more marketable and unless the energy produced is used solely in such operation,

  • (j) the operation of mixing concrete or asphalt if the results of the operation are primarily for the purpose of direct application in plastic form to roadway paving or for direct use in construction in metropolitan and surrounding areas,

  • (k) any mobile manufacturing or processing operation,

  • (l) construction work,

  • (m) an operation that consists of repair work unless the work amounts to rebuilding,

  • (n) an operation, the product of which is a fossil fuel,

  • (o) the processing of hydrocarbons into initial petrochemical feedstock, or

  • (p) an initial processing operation in a resource based industry, other than wood pulp processing, where the operation results in a product that is similar to, or substantially similar to, the natural state of the material being processed by the operation; (affaire de fabrication ou de transformation)

participation loan

participation loan[Revoked, SOR/84-902, s. 1]

party

party includes an individual, partnership, association, cooperative or body corporate or any trustee or legal representative thereof but does not include a legal entity that is owned or controlled by the government of a country other than Canada unless the entity is likely to make a significant contribution to regional industrial development; (partie)

repayable contribution

repayable contribution means a contribution that is repayable in whole or in part at such time and on fulfilment of such conditions as the Minister may stipulate; (contribution remboursable)

restructuring

restructuring[Revoked, SOR/84-902, s. 1]

tax credit

tax credit means an investment tax credit as defined in subsection 127(9) of the Income Tax Act; (crédit d’impôt)

tourism operation

tourism operation[Revoked, SOR/84-902, s. 1]

trade show

trade show means an event in Canada held for the purpose of encouraging business enterprises resident in Canada to

  • (a) manufacture machinery or equipment, process products or develop technology not yet widely available from Canadian manufacturers, processors or developers of technology, or

  • (b) purchase such machinery, equipment, products or technology from Canadian manufacturers, processors or developers; (exposition commerciale)

unemployment insurance beneficiaries to population ratio

unemployment insurance beneficiaries to population ratio means the ratio of

  • (a) the number of recipients of unemployment insurance benefits, except for

    • (i) recipients receiving illness, pregnancy or special severance benefits,

    • (ii) recipients receiving benefits as self-employed fishermen, and

    • (iii) recipients receiving benefits during a course or program referred to in subsection 39(1) of the Unemployment Insurance Act, 1971,

    as provided by Statistics Canada on the basis of data supplied by the Canada Employment and Immigration Commission

to

  • (b) that portion of the population of the district that is from 15 to 64 years of age, as provided by Statistics Canada. (indice des bénéficiaires de prestations d’assurance-chômage à la population)

  • SOR/84-902, s. 1.
 
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