Eligibility Criteria

TPC innovation officers can answer specific questions regarding the eligibility of your project.

• TPC and TPC-IRAP
• Types of recipients, areas, activities and costs eligible for TPC investment
• Criteria that TPC uses for selecting investment
• Other important criteria
   

TPC – IRAP Initiative

TPC has partnered with the National Research Council (NRC) to provide pre-competitive or pre-commercialization assistance to small and medium-sized enterprises (SMEs) through NRC's Industrial Research Assistance Program's (IRAP) national network of Investment Technology Advisors. If the forecast eligible costs of your project do not exceed $3,000,000, and you operate an SME (a company having 500 or fewer employees), you should contact IRAP at 1-877-994-4727 or through the IRAP Website: http://irap-pari.nrc-cnrc.gc.ca/english/iraptpc_e.html.

If the forecast eligible costs of your initiative exceed $3,000,000, then you should deal directly with TPC through the processes outlined in For Industry. While the upper limit to the size of a project may be constrained by the availability of funds, there is no restriction on the size of company which can be supported by TPC.

Types of recipients, areas, activities and costs eligible for TPC investment

Eligible Recipients

Eligible recipients are firms, organizations or institutions established in Canada, which are prepared to conduct research, development and innovation activities in the eligible areas, and which can demonstrate their ability to achieve the stated objectives of the proposed project. Eligible recipients may be incorporated entities, partnerships, cooperatives, or any trustee or legal representative thereof, or groups or alliances of eligible recipients where a lead recipient has been identified. Agencies of the Crown (including Crown corporations, government institutes, government laboratories, etc.) and universities may be allowed as members of alliances, but not as lead recipients.

Eligible Areas

Eligible areas are Environmental Technologies, Enabling Technologies and the Aerospace and Defence Sector, which are outlined below.

• The Environmental Technologies component encourages and supports the development and application of innovative technologies that contribute to the achievement of sustainable development, or that have significant environmental benefits. It involves projects in priority environmental areas such as the development of sustainable alternatives (better conservation of energy, water and non-renewable resources), pollution prevention through the development of clean process technologies (including clean car technologies), pollution abatement (technologies that reduce waste or harmful emissions) and pollution remediation.
• The Enabling Technologies component encourages and supports the development, application and diffusion of those critical technologies that will have major impact and benefits within and across industry sectors. It involves projects in advanced manufacturing and processing technologies, advanced materials processes and applications, applications of biotechnology and applications of selected information technologies.
• The Aerospace and Defence component encourages and supports the development and application of those technologies essential for the development of these sectors. It involves projects that sustain and expand the technological capacity and capability of these sectors. Support is also available for defence conversion projects aimed at reducing the dependency of enterprises on military contracts.

Eligible Activities

The following activities are eligible for TPC funding:

• Industrial research: planned search or critical investigation aimed at the discovery of new knowledge, with the objective that such knowledge may be useful in developing new products, processes or services, or in bringing about a significant improvement to existing products, processes or services;
• Pre-competitive development: translation of industrial research findings into a plan, blueprint or design for new, modified or improved products, processes or services; conceptual formulation and design of products, processes or service alternatives; initial demonstration or pilot projects, and prototypes; and other related pre-production activities; and
• Studies: studies pertaining to potential industrial research or pre-competitive development projects and studies for related activities.

Eligible Costs

Eligible costs include labour, material and other costs which are directly attributable to the project. Overhead expenses such as indirect labour, materials and supplies, and general and administrative expenses are also eligible. Specialized equipment for the project may be eligible as well. TPC does not support costs associated with land and buildings. If required, further details on eligible and ineligible costs are available from a TPC Innovation Officer. No costs will be considered eligible if they are incurred prior to the date which TPC confirms that the Investment Proposal received from your company is approved.

Criteria that TPC uses for selecting investment

Investment Outlines and Proposals are assessed in the context of their relevance to the objectives of TPC, namely the extent to which they demonstrate:

• that the project contributes to the strategic objectives of the government, including technological and net economic benefits to Canada (increasing economic growth, creating jobs and wealth, and supporting sustainable development);
• that the project is technologically feasible, and that the applicant possesses, or can reasonably be expected to secure, the requisite technological and managerial capabilities and financial resources to achieve the stated objectives of the project;
• that a contribution under TPC is necessary to ensure that the project (either individually or as part of a portfolio of related activities of the applicant) proceeds with the desired scope, timing or location; and
• that the contribution will be repaid.

TPC will be administered in accordance with Canada’s international agreements. The granting of assistance to enterprises that export will not be precluded merely because they export. Contributions will not, however, be contingent, either in law or in fact, upon actual or anticipated export performance, and administering officials will not request or consider information concerning the extent to which applicant or recipient enterprises do or may export.

Other important criteria

The following additional information on TPC may be helpful as you develop your Investment Outline:

• Work in Canada: It is expected that all development activities and production of resulting technologies will take place in Canada unless, specifically approved otherwise.
• Other Government Obligations: It is TPC policy not to make investments if applicants are not current in their obligations to the federal government. TPC verifies that applicants are up-to-date in any obligations within Industry Canada. Also, TPC requires that companies certify that they are current in their obligations to all other parts of the federal government.
• Funding from other Government Sources: You must identify all sources of government funding obtained for the project, including federal, provincial or municipal government assistance. If funding from any sources, other than federal and provincial tax credits, becomes available during the course of the project, you must inform TPC and it will have the right to reduce its contribution to the extent of any such assistance.
• Monitoring and Reporting: In accordance with the Treasury Board Policy on Transfer Payments, TPC conducts contribution audits on projects. Successful applicants to the program may be selected for a contribution audit, in accordance with a pre-set multi-year contribution audit program. From time to time, audits other than the multi-year contribution audit program may also occur (e.g. audits by the Officer of the Auditor General, internal audits by Industry Canada or special review audits). Applicants with active projects will also get an annual on-site visit and review by TPC staff, technical and/or financial advisors.
• Intellectual Property Rights: It is expected that your company will retain all rights to the intellectual property for any technology developed in your TPC-supported project.
• Environmental Certification: Before funding for your project can be approved, an environmental screening will be completed to ensure compliance with the Canadian Environmental Assessment Act (CEAA). Thereafter, with the first claim, and subsequently on an annual basis, you will certify that you have implemented, and will maintain, all necessary environmental protection measures in relation to your project and that all regulatory bodies have been satisfied.
• Confidentiality:The TPC program is subject to the Access To Information Act. As such, TPC is requested from time to time to respond to requests for information under the Access to Information Act. Where specific company and/or project information is sought, TPC program clients may be contacted, material may be provided for their review and their comments as to why requested information should not be disclosed.

Lobbyist Registration Act:

The Lobbyist Registration Act (LRA), Industry Canada and Treasury Board of Canada (TBC) policies regarding Grants and Contributions and the terms and conditions of the TPC Contribution Agreement require that all TPC applicants ensure that, if consultant or in-house lobbyists are used in communications with TPC regarding the award of a potential Contribution Agreement or of an amendment, that such persons are duly registered according to the requirements of the LRA and that no commissions or other contingency payments are to be made.

With respect to the consideration and awarding of a TPC Contribution Agreement or of an amendment, under the Lobbyist Registration Act, a “lobbyist” includes ANY PERSON who, for payment or any other consideration, undertakes to communicate with a public office holder and/or arranges a meeting between a public office holder and any other person. Such an individual must be registered and in compliance with the Lobbyist Registration Act.

Under that same Act, persons employed by a company may also be considered as in-house lobbyists, thus requiring their registration, if, among their duties, they are to communicate with “public office holders”. The most senior officer (most commonly the chief executive officer) of the organization must register on behalf of all employees of the organization within two months of commencing lobbying activities. The filing will need to provide the names of all the senior officers within the corporation and their direct reports whose collective time devoted to lobbying works out to be the same as a significant part (20 percent or more) of one employee’s duties. As well the names of any other employees who individually lobby as a significant part of their duties must be filed.

It is also a TBC policy that a person cannot be paid a reward such as a commission, an advantage or benefit of any kind as consideration for cooperation, assistance or the exercise of influence related to the transaction of business with, or any matter of business, relating to the Government.

These conditions, contained in the TPC Contribution Agreement, apply and must be respected throughout the TPC application process and execution of approved projects, including from the time of preparation and submission of an Investment Outline to completion of the Benefits Phase of an approved Contribution Agreement. Further details on the Lobbyist Registration Act and its administration can be found by accessing the web site at: http://strategis.ic.gc.ca/epic/internet/inlr-el.nsf/en/Home.

TPC encourages your company to consult its legal counsel to ensure that your company is in compliance with the provisions of the Lobbyists Registration Act, as amended on June 20, 2005 and the regulations promulgated thereunder.