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

• 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).

• 22 (1) 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 21; or

  • (b) to perform a productivity improvement study, market research or a venture capital search in connection with a proposed project that would likely be eligible for a contribution under section 21.

• (2) The Minister’s contribution under subsection (1) shall not exceed

  • (a) 30 per cent of the costs of consulting services for projects in districts in Tier Group I or Tier Group II; and

  • (b) 37.5 per cent of the costs of consulting services for projects in districts in Tier Group III or Tier Group IV.

  • (c) [Revoked, SOR/84-902, s. 11]

• 22.1 (1) In this section, eligible costs and expanding existing facilities have the same meaning as in section 21.

• (2) The Minister may, with the approval of Treasury Board, make a contribution to a commercial operation for a project in a district in Tier Group I

  • (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.

PART VIIIMarketing

• 23 (1) The Minister’s contribution under this section shall not exceed 45% of the costs.

• (2) The Minister may make a contribution to an eligible person, other than a municipal corporation, in respect of the costs of

  • (a) activities that promote the acceptance of Canadian standards and product specifications,

  • (b) the publication and dissemination of catalogues and other literature to promote Canadian products,

  • (c) market research and analysis,

  • (d) advertising, and

  • (e) a trade show, seminar or other event,

  where the purpose of the activity, literature, research, analysis, advertising or event is to increase marketing of the products or services of commercial operations.

• (3) [Revoked, SOR/84-902, s. 13]

24 Subject to section 25, the Minister may make a contribution to an eligible person, other than a municipal corporation, in respect of the cost of engaging a qualified consultant to conduct a study concerning the feasibility of a proposed activity that would likely be eligible for a contribution under subsection 23(2).

25 The Minister’s contribution under section 24 shall not exceed

• (a) 25 per cent of the cost of consulting services for activities to be carried out by eligible persons located in Tier Group I;

• (b) 30 per cent of the cost of consulting services for activities to be carried out by eligible persons located in Tier Group II; or

• (c) 37.5 per cent of the cost of consulting services for activities to be carried out by eligible persons located in Tier Group III or Tier Group IV.

PARTS IX AND X

[Revoked, SOR/84-902, s. 15]

PART XIConditions of Assistance

• 29 (1) Notwithstanding any other provisions of these Regulations, the Minister may not make a contribution in respect of a cost of a proposed project or activity if the applicant had, prior to the receipt by the Minister of an application for a contribution to the proposed project or activity, entered into a legal commitment in respect of the cost.

• (2) In this section, legal commitment does not include an option to purchase.

• 30 (1) Every applicant shall provide the Minister with any information in his possession that is likely to assist the Minister in considering

  • (a) the probable cost of each job likely to be created or maintained as a result of the proposed project or activity calculated in terms of the proposed contribution;

  • (b) the leverage of private investment;

  • (c) factors relating to the district or portion thereof in which the project or activity is to be carried out, including the local rate of unemployment;

  • (d) the amount of any federal, provincial or municipal assistance or tax credit, whether past, present or future, that is likely to be relevant to the proposed project or activity;

  • (e) the degree of benefit likely to result when compared to the likelihood of successful completion of the proposed project or activity;

  • (f) implications of the proposed project or activity in relation to Canada’s balance of payments;

  • (g) the probable impact of the proposed project or activity on commercial operations, eligible persons and districts;

  • (h) the probable cost of preventing or eliminating any significant air, water or other pollution that could result from the proposed project or activity;

  • (i) in the case of a project to establish or expand a processing facility, whether the resources to be exploited would be adequate, on a sustained-yield basis, to support the facility together with any existing facility that utilizes the same resources; and

  • (j) such other factors relating to the economic and social benefits and costs of the proposed project or activity as the Minister considers relevant.

• (2) Every applicant shall provide in his application, an outline of the proposed project or activity in reasonable scope and detail.

31 If

• (a) the contribution to be authorized by the Minister for a proposed project or activity is likely to be at least $100,000, or

• (b) at least 100 jobs are likely to be directly affected by a proposed project or activity,

the Minister may consult with the Canada Employment and Immigration Commission concerning the human resource implications of the proposed project or activity prior to entering into an agreement to provide a contribution.

32 If, as a result of a consultation under section 31, the Minister and the Canada Employment and Immigration Commission are satisfied that the applicant should have a human resource plan for the project or activity, the Minister may require, as a condition of the contribution that the applicant submit a human resource plan satisfactory to the Canada Employment and Immigration Commission within a stipulated time.

33 Notwithstanding any provision of these Regulations, the Minister shall not make a contribution unless the project with respect to which the contribution is being provided is commercially viable within reasonable bounds of risk, and the commercial operation carrying out the project is or will become commercially viable within reasonable bounds of risk.

34 The Minister shall not make a contribution in respect of any project or activity that is eligible for assistance under

• (a) the Canadian Industrial Renewal Regulations; or

• (b) the Industry and Labour Adjustment Program.

• 34.1 (1) Subject to subsection (3) the Minister shall not make a contribution in respect of any project or activity where the maximum amount of eligible costs of such project or activity, the number of employees of the applicant and the value of tangible assets of the applicant meet the eligibility criteria set out in a subsidiary agreement on small business incentives made pursuant to an Economic and Regional Development Agreement.

• (2) Subject to subsection (3), the Minister shall not make a contribution in respect of any project or activity that is eligible for assistance under the Low Interest Loan Assistance Program of the Province of British Columbia in effect October 1, 1985.

• (3) Subsections (1) and (2) do not apply to any contribution make pursuant to section 9, 10, 11, 12, 13, 23 or 24.

• 35 (1) It is a condition of every contribution that the aggregate of

  • (a) the contribution,

  • (b) any other federal, provincial or municipal government assistance in respect of the project or activity, and

  • (c) the estimate by the Minister of any tax credit to which the applicant is or will be entitled in respect of any property or expenditure related to the project or activity on or before the date of its completion,

  does not exceed 90 per cent of the costs, eligible costs or capital costs, as the case may be, of the project or activity.

• (2) Assistance under these Regulations shall be in such amount as the Minister considers necessary for the successful completion of the project or activity from which the value of any assistance described in paragraph (1)(b) will be deducted.