New Funding Programs

High Performance New Construction
Ontario Wheat Innovation Support Fund
Advanced Manufacturing Investment Strategy (AMIS)
Other Funding Updates and Reminders

• Advanced Manufacturing Investment Strategy (AMIS)
• Federal Budget 2008 Improvements to the Scientific Research and Experimental Development Tax Credit Program (SR&ED)
• Next Generation of Jobs FUnd (NGOJF)

Upcoming Events

High Performance New Construction

The Ontario Power Authority (OPA) has a new building construction incentive program for builders/owners and architects. It gives design and financial assistance for new construction or additions, and major renovation projects that exceed Code. Building owners will receive from $50 to $400 incentives per verified kilowatt saved; the greater the electricity savings, the greater the incentives. It also supports 100% of the cost of modeling a building up to $10,000. Eligible buildings include industrial and office buildings, and retail spaces, among others. To qualify, projects must be located in Ontario (excluding the 416 area code). Projects must be completed by December 2012. Buildings that obtained a building permit between August 2007 and March 2008 are also eligible.

For all the program details, criteria and applications please visit http://www.hpnc.ca. The website also has links to other energy savings programs including those offered by Enbridge Gas, Union Gas, Natural Resources Canada, the City of Toronto, and other OPA programs.

Ontario Wheat Innovation Support Fund

New funding is available for product development and innovation that incorporates more Ontario wheat. Companies can receive up to 75 percent of the cost of developing innovative products, to a maximum of $25,000. The Ontario Wheat Producers' Marketing Board just announced this Innovation Support Fund. The funding will help companies by providing financial support and expertise in the areas of product analysis, pilot scale trials and packaging techniques. Studies over the last three years at the Canadian International Grains Institute have shown that a number of Ontario wheat varieties can be a direct substitute for western wheat. For more information on the support fund, please speak with Erin Fletcher at the Ontario Wheat Producers' Marketing Board at 519-767-4129.

Other Funding Updates and Reminders:

Advanced Manufacturing Investment Strategy (AMIS)

A program providing up to $10 million in a five-year, principal and interest-free loan. Projects must EITHER be at least a $10 million investment over a five-year period, OR create OR retain 50 jobs. The loan will cover 30% of the cost of a project. The key to this program is "advanced manufacturing." For example, technology or processes new to Canada/Ontario, state-of-the-art, leading edge, centres of excellence, and so on. Capital expenditures qualify as eligible project costs. To find out more about the program and its next "call for proposals" or to apply, visit the Advanced Manufacturing Investment Strategy website.

Federal Budget 2008 improvements to the Scientific Research and Experimental Development Tax Credit Program (SR&ED)

(Adapted from an article in Excellence in Manufacturing Consortium's (EMC) March 2008 newsletter, www.emccanada.org)
In the federal budget several changes to the tax credit program were announced that broaden the benefits to companies. These include:

• A higher expenditure limit. An increase in the expenditure limit from $2,000,000 to $3,000,000 means companies may receive a federal refund of $1,050,000 ($3,000,000 X 35%), up from $700,000.
• A higher taxable income limit. Canadian-Controlled Private Corporations (CCPCs) with taxable income above $400,000 (which is the Small Business Limit), will receive higher refunds/credits.
• A higher Taxable Capital Limit. CCPCs with taxable capital above $15,000,000 historically were reduced to the 20% Tax Credit.
  This meant that a company in a loss position could not use the tax credits generated by a good SR&ED claim. The increase in the limit to $50,000,000 will open the door for many larger companies that are not currently earning a profit to receive refunds on SR&ED claims.
• Foreign Salaries. SR&ED related salaries and wages may now be eligible even if they were not incurred in Canada. Inclusion of these wages is limited to 10% of the total.
• Better Service: The Canada Revenue Agency (CRA) has committed to a couple of key initiatives including 'consistent application'across the country.

For more information on this and other tax measures announced in the federal budget, visit the federal budget website at http://www.budget.gc.ca/2008/plan/ann4a-eng.asp.

Next Generation of Jobs Fund (NGOJF)

Under this fund, the Jobs and Investment Program is designed to help companies in a wide range of sectors to expand in Ontario and develop innovative products for global markets. Projects must EITHER create OR retain at least 100 jobs, OR invest $25 million over five years. Projects must support the program's purpose to support research, development and commercialization in innovative industries and attract new investments and jobs in areas of great potential for Ontario. The key is "next generation" JOBS. For example, highly skilled jobs that are being created/retained, projects that are innovative and using leading-edge technologies and projects that result in the development of new or improved products. This program will also support investment in capital. For more information or to apply, please visit http://www.ontario-canada.com/ontcan/en/nextgen_jip_en.jsp.

Upcoming Events

Ontario Food and Beverage Processing HR Summit, September 29 & 30, 2008

New resources and programs to help employers address skills shortages in Ontario's food and beverage industries will be unveiled at the first ever HR Summit in September. The event for food and beverage companies is being hosted by the Alliance of Ontario Food Processors, in conjunction with the City of Toronto and the Ontario Ministry of Agriculture, Food and Rural Affairs' Business Development Branch. Be sure to attend this event! Organizers expect 150 small, medium and large-sized companies from all parts of the province to meet, discuss the issues and hear about the latest programs that have been developed to address their workforce recruitment and retention efforts. The first evening is targeted at owners, presidents and senior management of food and beverage companies. Following dinner, they will hear the latest observations and suggestions of Roger Martin, Chair of Ontario's Task Force on Competitiveness, Productivity and Economic Progress as the evening's keynote speaker. Mr. Martin was recently appointed by the Premier to study workforce competitiveness and skilled workforce issues in Ontario. The following day will be more operational in nature. The program will see new resources unveiled for food and beverage companies to support their ongoing efforts to recruit and retain a quality workforce. These resources have been developed in a project called "Destination Excellence" which was overseen by the organizers and conducted by a partnership among the Guelph Food Technology Centre, the University of Guelph and James Farrar and Associates. Government and other community employer support programs for food and beverage manufacturers will also be described during this day. More details will be circulated in coming weeks. Please contact Michele Poisson 519-767-5374 at the Alliance of Ontario Food Processors for more information.

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