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

PART IVDesign Canada Grant

5 In this Part,

Design Canada Scholarship

Design Canada Scholarship means a grant made to a person in the 1984-85 fiscal year pursuant to paragraph 5(1)(a) of Order in Council P.C. 1983-2228, for the purpose of defraying the costs necessarily and directly related to the pursuit of advanced studies in design.

6 The Minister may grant a Design Canada Scholarship to a person who already received such a Scholarship to a person who already received such a Scholarship in the 1984-85 fiscal year.

7 [Revoked, SOR/84-902, s. 3]

PART VInnovation

8 In this Part, eligible costs are the costs necessary to carry out a project or activity and includes capital costs but does not include the cost of infrastructure development.

9 Subject to section 14, the Minister may make a contribution to an applicant in respect of

• (a) the eligible costs of the development or the demonstration of a new or improved product or production process that entails significant technical risk, if the development or demonstration is scientifically and technically feasible, if the results of the development or demonstration would offer significant technological advancement and if there is a good prospect for commercially exploiting the development or demonstration; and

• (b) the eligible costs of the design of a new, mass-producible durable product that offers good prospects for commercial exploitation, if the design necessitates the expansion of the industrial design program of the applicant and is directed by a qualified industrial designer.

10 Subject to section 14, the Minister may make a contribution to an applicant in respect of eligible costs of the improvement or expansion of the technological capability of the applicant where the improvement or expansion entails significant technological risk and does not lead directly to identifiable sales, if the improvement or expansion is scientifically and technically feasible and of importance to the applicant and to regional development priorities.

• 11 (1) Subject to section 14, the Minister may make a repayable contribution to an applicant in respect of the eligible costs of a development or demonstration of a new or improved and technologically advanced product or production process where the development or demonstration does not entail significant technical risk, if the development or demonstration is scientifically and technically feasible and there is a good prospect for commercially exploiting the development or demonstration.

• (2) A contribution under subsection (1) is repayable on successful commercial exploitation of the development or demonstration.

12 Subject to section 14, the Minister may make a contribution to an applicant in respect of the eligible costs of research or the development, demonstration or adaptation of new or improved technology, products, production processes, equipment or facilities if

• (a) the research, development, demonstration or adaptation entails significant technical risk;

• (b) the object of the research, development, demonstration or adaptation is the elimination or reduction of pollution generated by commercial operations;

• (c) the research, development, demonstration or adaptation is scientifically and technically feasible; and

• (d) the research, development, demonstration or adaptation is likely to result in a significant improvement in pollution abatement technology in Canada.

13 Subject to section 14, the Minister may make a contribution to an applicant in respect of the costs of engaging the services of a qualified consultant

• (a) to perform a study concerning the feasibility of a proposed project or activity that is likely to be eligible for assistance under section 9, 10, 11 or 12; or

• (b) to perform

  • (i) market research,

  • (ii) a study concerning technology transfer to the applicant, or

  • (iii) a venture capital search

  in connection with a proposed project or activity that is likely to be eligible for assistance under section 9, 10, 11 or 12.

• 14 (1) The Minister’s contribution under this Part shall not exceed

  • (a) 33.3 per cent of the costs or eligible costs, as the case may be, of

    • (i) projects and consulting services for projects carried out in districts located in Tier Group I, and

    • (ii) activities and consulting services for activities to be carried out by eligible persons located in Tier Group I;

  • (b) 40 per cent of the costs or eligible costs, as the case may be, of

    • (i) projects and consulting services for projects carried out in districts located in Tier Group II, and

    • (ii) activities and consulting services for activities to be carried out by eligible persons located in Tier Group II; or

  • (c) 50 per cent of the costs or eligible costs, as the case may be, of

    • (i) projects and consulting services for projects carried out in districts located in Tier Group III or Tier Group IV, and

    • (ii) activities and consulting services for activities to be carried out by eligible persons located in Tier Group III or Tier Group IV.

• (2) The Minister shall not make a contribution to an applicant under section 9, 10, 11 or 12 if

  • (a) the application therefor is received after February 18, 1987; and

  • (b) the total eligible costs of the project of activity are less than $100,000.

PART VIEstablishing a New Facility

15 In this Part, establishing a new facility includes a purchase of the assets of an existing facility if

• (a) at the time of the application, commercial production in the facility has ceased or is about to cease;

• (b) the cessation or imminent cessation of commercial production in the facility is dictated by circumstances beyond the control of the vendor of the assets;

• (c) the purchase of the assets is a bona fide arm’s length transaction and has not been contrived for the purpose of an application under the Act or these Regulations; and

• (d) the purchase price of the assets for the purposes of assistance under this Part is not in excess of the fair market value of the assets.

• 16 (1) Subject to subsections (2) and (3), the Minister may make a contribution to a commercial operation in respect of the capital costs of establishing a new facility in a district in Tier Group II, Tier Group III or Tier Group IV.

• (2) A contribution under subsection (1) shall not exceed

  • (a) 17.5 per cent of the capital costs of projects in districts in Tier Group II;

  • (b) 25 per cent of the capital costs of projects in districts in Tier Group III; or

  • (c) 30 per cent of the capital costs of projects in districts in Tier Group IV.

• (3) The Minister shall not make a contribution under subsection (1) unless the capital costs of the project will be

  • (a) $50,000 or more with respect to projects in districts in Tier Group II;

  • (b) $25,000 or more with respect to projects in districts in Tier Group III; or

  • (c) $5,000 or more with respect to projects in districts in Tier Group IV.

17 The Minister may, with the approval of Treasury Board, make a contribution to a commercial operation in respect of the capital costs of establishing a new facility in a district in Tier Group I.

• 18 (1) Subject to subsection (2), the Minister may make a contribution to a commercial operation in respect of the cost of engaging a qualified consultant

  • (a) to perform a study concerning the feasibility of a proposed project that would likely be eligible for a contribution under section 16 or 19; or

  • (b) to perform market research or a venture capital search in connection with a proposed project that would likely be eligible for a contribution under section 16 or 19.

• (2) A contribution by the Minister under this section shall not exceed

  • (a) 33.3 per cent of the costs of consulting services for projects to be located in districts in Tier Group I;

  • (b) 40 per cent of the costs of consulting services for projects to be located in districts in Tier Group II; or

  • (c) 50 per cent of the costs of consulting services for projects to be located in districts in Tier Group III or Tier Group IV.

• 18.1 (1) Subject to subsection (2), the Minister may make a contribution to a commercial operation in respect of the cost of engaging a qualified consultant to perform a study concerning the feasibility of establishing a new commercial operation in Canada where

  • (a) the Minister has requested the commercial operation to engage the consultant and the commercial operation has agreed; or

  • (b) the commercial operation has agreed that the Minister will have free and unrestricted right to obtain and use the results of the study if the commercial operation fails to initiate a new commercial operation within such period as the Minister shall determine.

• (2) A contribution made by the Minister under this section shall not exceed 75 per cent of the costs of consulting services.

• 19 (1) Subject to subsections (2) and (3), where the average unemployment insurance beneficiaries to population ratio of a district in Tier Group I for any period of six consecutive months commencing at any time after June 1, 1982 exceeds by 1 per cent or more the average national unemployment insurance beneficiaries to population ratio for the same period, the Minister may, notwithstanding section 17, make a contribution to a commercial operation in respect of the capital costs of establishing a new facility to be located in that district if the application therefor is made

  • (a) within 12 months after the day on which the data used to determine the ratios first become available; or

  • (b) with respect to any such period for which the data used to determine the ratios became available before January 1, 1984, within 12 months of the coming into force of this subsection.

• (2) A contribution by the Minister under this section shall not exceed 17.5 per cent of the capital costs.

• (3) The Minister shall not make a contribution under this section unless the capital costs of the project will be $50,000 or more.

• (4) For the purposes of subsection (1),

  • (a) average unemployment insurance beneficiaries to population ratio of a district in Tier Group I for any period of six consecutive months means the average of the monthly unemployment insurance beneficiaries to population ratios for each of the six months in the period, expressed as a percentage; and

  • (b) average national unemployment insurance beneficiaries to population ratio for any period of six consecutive months means the average of the monthly national unemployment insurance beneficiaries to population ratios for each of the six months in the period, expressed as a percentage.

PART VIIModernization and Expansion

• 20 (1) Subject to subsections (1.1) and (3), the Minister may make a contribution to a commercial operation in respect of the eligible costs of a project carried out

  • (a) in a district in Tier Group II, Tier Group III or Tier Group IV; or

  • (b) notwithstanding section 20.1, in a district in Tier Group I if a new facility in the district would be eligible for assistance under subsection 19(1) and an application for assistance under this subsection is made within the time period specified in subsection 19(1).

• (1.1) The Minister may make a contribution referred to in subsection (1) if the project expands, modernizes or enhances the productivity of the commercial operation through

  • (a) the first incorporation or application of microelectronic devices in its products, processes, production methods or facilities;

  • (b) the design of custom microelectronic devices for incorporation or application in its products, processes, production methods or facilities; or

  • (c) the incorporation or application of electronic or electronic-dependent products or systems in its production or design processes or facilities.

• (2) The Minister may make a contribution to a commercial operation in respect of the cost of engaging a qualified consultant to perform a study concerning the feasibility of a proposed project that would be likely to be eligible for a contribution under subsection (1).

• (3) A contribution under this section shall not exceed

  • (a) 30 per cent of the costs or eligible costs, as the case may be, of projects and consulting services for projects in districts in Tier Group I and Tier Group II; and

  • (b) 37.5 per cent of the costs or eligible costs, as the case may be, of projects and consulting services for projects in districts in Tier Group III and Tier Group IV.

  • (c) [Revoked, SOR/84-902, s. 8]

• (4) In this section, eligible costs means the costs necessary to carry out the project and includes capital costs but does not include the costs of infrastructure development.

• 20.1 (1) The Minister may, with the approval of Treasury Board, make a contribution to a commercial operation in respect of the eligible costs of a project in a district in Tier Group I that expands, modernizes or enhances the productivity of the commercial operation through

  • (a) the first incorporation or application of microelectronic devices in its products, processes, production methods or facilities;

  • (b) the design of custom microelectronic devices for incorporation or application in its products, processes production methods or facilities; or

  • (c) the incorporation or application of electronic or electronic-dependent products or systems in its production or design processes or facilities.

• (2) In this section, eligible costs, in respect of a project, means the costs necessary to carry out the project and includes the capital costs of the project but does not include the costs of the infrastructure development of the project.

• 21 (1) In this section,

  eligible costs

  eligible costs means capital costs but does not include the costs of infrastructure development; (coûts admissibles)

  expanding existing facilities

  expanding existing facilities includes the replacement of facilities with new facilities on the same site and the relocation of facilities in whole or in part. (agrandissement des établissements existants)

• (2) Subject to subsections (3) and (4), the Minister may make a contribution to a commercial operation in respect of the costs set out in subsection (3) if the project to be assisted is carried out in a district

  • (a) in Tier Group II, Tier Group III or Tier Group IV; or

  • (b) notwithstanding section 22.1, in Tier Group I if a new facility in the district would be eligible for assistance under subsection 19(1) and an application for assistance under this subsection is made within the time period specified in subsection 19(1).

• (3) The contribution referred to in subsection (2) shall be

  • (a) in respect of the eligible costs of machinery or equipment that modernizes or increases significantly the productivity of the commercial operation; or

  • (b) in respect of the capital costs of expanding existing facilities of the commercial operation.

• (4) The Minister shall not make a contribution under this section unless the capital costs of the project will be

  • (a) $50,000 or more with respect to projects carried out in districts in Tier Group I or Tier Group II;

  • (b) $25,000 or more with respect to projects carried out in districts in Tier Group III; or

  • (c) $5,000 or more with respect to projects carried out in districts in Tier Group IV.

• (5) The minister shall not make a contribution under this section in an amount that exceeds

  • (a) 17.5 per cent of the capital costs or eligible costs, as the case may be, of projects in districts in Tier Group I or Tier Group II; or

  • (b) 25 per cent of the capital costs or eligible costs, as the case may be, of projects in districts in Tier Group III or Tier Group IV.

• (6) Notwithstanding any other provision of these Regulations, a project for the relocation of facilities is eligible for a contribution only under paragraph 21(3)(b) or 22.1(2)(b).