STEVE WOLOZ & ASSOCIATES INC.
MANAGEMENT CONSULTANTS
514-944-8241
www.swaassoc.com
Presentation Regarding
Government Grant &
Incentive Programs
For The
Accountants Study Group
Revision 6: January 5 ,2009
1: INTRODUCTION
1. Government Assistance Programs

1.1 Federal

1.2 Provincial
2: SWA Qualifications
3: Professional Disclaimer
4: Preparation Is Key
5:
? : Cell Phones
2
2: Nature of Government Assistance
1. Grants
2. Tax Credits / Rebates
3. Loans
4. Technical Support / Education Programs
5. Fines ( e.g. Loi 90; Equite Salariale )
3
3: SWA QUALIFICATIONS
1. Our Background

1.1 Industrial Engineering

1.2 Human resources

1.3 Strategic Business Planning
2. Our Experience with Government Programs
3. SWA Licensed Formateur Agrees
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4: Federal Assistance Programs
INDUSTRY CANADA : HOME PAGE
http://www.ic.gc.ca
MISSION
(3.1)
(3.2)
SERVICES FOR BUSINESS
(3.3)
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4.1: FEDERAL PROGRAMS
Overview
FINANCIAL ASSISTANCE
(Finding Financing)
(4)
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4.2: FEDERAL PROGRAMS (Grants)
E.G. TEXTILE
CANtex ; formerly CATIP
(4)
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4.3: FEDERAL PROGRAMS:
Tax Credits / Rebates

SR&ED :Claimed after the fact

Check reimbursement (or tax credit ) after Y.E. filing

Reimbursement : Typical : Federal 3 months after filing
: Provincial 6 months after Fed.

Approx Combined Refund: 60 % of Eligible amount


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4.3:FEDERAL SR&ED TAX CREDIT

Government Website

http://www.cra-arc.gc.ca/taxcredit/sred/aboutus-e.html#whatis





What is the SR&ED Program?
Who qualifies?
What kind of projects qualify?
How do businesses apply for the tax credit?
How long will it take to process your claim?
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4.3:Federal SR & ED TAX CREDITS
•
Federal Tax Incentive Program to Encourage
R&D
•
Kind Of Projects that Qualify
•
•
•
•
•
Experimental Development
Applied Research
Basic Research
Support Work
Essential Elements
•
•
•
New
Risk
Failure
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4.3: Federal : SR&ED
Technological Uncertainty


“A technological uncertainty arises when the
solution is not readily apparent to appropriately
skilled and experienced software developers.”
“In software development, technological
uncertainty is most usually found in: resolving
which is the best of several possible
architectures, designs, algorithms, techniques or
constructs; the extent to which performance can
be achieved within defined hardware or software
constraints (which might be commercially
imposed); or in the interoperability of software
entities which were not designed to work
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together.”
4.4: FEDERAL PROGRAMS:


National Research Council
Canada
Programs that are designed to stimulate community-based
innovation across Canada in the areas of life sciences, physical
sciences, engineering, technology, industry support and
corporate services.
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4.4: FEDERAL PROGRAMS:
GRANTS


Industrial Research Assistance
Program
Provides a range of both technical and
business-oriented advisory services
along with potential financial support to
growth-oriented Canadian small and
medium-sized enterprises.

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4.3: FEDERAL PROGRAMS:
GRANTS

Industrial Research Assistance Program

Complimentary Benefits to working with IRAP and SRED
And not be accused of double dipping

1: Typically SR&ED subsidizes 60 % of eligible costs

2: IRAP Can Help Subsidize 40 % of non supported SRED



3: Know $ support before project commencement

4: Progressive reimbursement throughout project lifecycle
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4.3: FEDERAL PROGRAMS:
GRANTS





Industrial Research Assistance Program
Note: Lobbying Act : Government of Canada Publishes New
Rules for Lobbyists
4 Jan 2008 ... The proposed regulations necessary for the
coming into force of the Lobbying Act are available on the
Canada Gazette Web
CMC-Canada members
who contract with the Government of Canada, either in
their own right or as employees, will be particularly
interested in their registration requirements.
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4.3: FEDERAL PROGRAMS:
GRANTS



Lobbying Registration Requirement and
Restrictions . ( Effective July 2, 2008)
Persons marketing their services, or promoting a contract, or a
contract extension outside of a public tendering process need
to register.
A ban on making or receiving any payment or other benefit that
is contingent on the outcome of any consultant lobbyist's
activity( i.e. a success or contingency fees)
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5: Provincial Assistance Programs
5.1 MDEIE
5.2 Emploi Quebec
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5.1 MDEIE

MISSION STATEMENT
( 10 )
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5.1 QUEBEC : MDEIE
Quebec dedie plus de $ 620 au secteur manufacturier

Notes

1:First Come / First Served

2: ***Well prepared request is key*****

3: Admissibility Criteria:
•
•
•
•
•
Quebec based Company
Annual sales > $ 500 K
< 200 employees
1 year in existence
Balance : case by case assessment
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6.1 QUEBEC Dedie plus de $ 620 au
secteur manufacturier

General Guidelines re Financial Aid programs

1: Grants not requiring repayment


2: Maximum contribution not to exceed 40 % of eligible
expenses / project
3: Maximum contribution not to > $ 50 k / yr
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6.2 MDEIE Program : Categories of Financial Assistance
1.
Export Market Development
2.
Adoption / Implementation of Best Business Practice
MPA ( Meilleur Pratique D’affaire . ( eg PVA ; Lean )
3.
Encouragement of Innovation and Entrepreneurship
4.
Encourage Investments
•
•
•
Administered via M D E I E ; 514-499-2199; 514-499-2550; 1 866 680 1884
www.mdeie.gouv.qc.ca
www.entreprises.gouv.qc.ca
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6.2.1 MDEIE : Assistance re Market Development
1.
Includes : e.g.
•
•
•
•
•
2.
3.
4.
Strategic Business Planning
Market Studies
Feasibility Studies
Trade Show Attendance
Hiring of Expert re International Trade
Applicable towards consulting fees or in-house salaries
Maximum Contribution $ 20 K /hiring
Trade show : ensemble project 50 k$ / company / yr
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6.2.2 MDEIE Assistance re Innovation and Productivity
1.
Includes R & D
( Compliments Federal Program)
• New product
• New procedures
• To Subsidize Consulting Fees
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6.2.3 MDEIE: Assistance Re “ Vitrine Technologique
“
• Field testing :New product / procedure
• Conceived in Quebec
• Not for purpose of sale
• Maximum Assistance : $ 350 k
• Conducted over 2 years
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6.2.4 MDEIE: Assistance Re “ Validation Technique
“
• Verification of performance or characteristics
of new product / service /procedure to
conform to required guidelines e.g U/L
• Conceived in Quebec
• Maximum Assistance / Project : $ 50 k
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6.2.6 MDEIE: “ Mesure d’appui a la productivite “
• Software: total enterprise ( eg ERP )
• Technological: procedural optimisation
• Implementation of break even analysis
system or management reporting systems
• Maximum Assistance : 40 % of project cost
• Contribution not to exceed $ 40 k
• Not to exceed 18 months
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6.2.7 MDEIE: “ Mesure Design - Innovation “



Hiring new designer
Hiring apprentices (stagieres) dedicated to
design
Hiring external consultant for first time
• Maximum Assistance : $ 20 k
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6.2.8 MDEIE: “ Hiring for R & D “
• Hiring new person dedicated to R & D
• Maximum Assistance :


$ 20 k: Graduate with Masters degree
$ 25 k : Graduate with Doctorate degree
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6.2.9 MDEIE: “ Soutien a l’intensification
technologique “
• Using University or recognized
teaching institution ( CCTT) to help
further R&D activities
• Assistance :



Based at 50 % of institution charges
Cumulative government assistance cannot > 60 %
Maximum assistance / project : $ 100 K
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6.2.10 MDEIE: Pro Mode
• Phase 1:Organization diagnostic study
• Phase 2: Pre commercialisation
• Phase 3: Design ; technology advancement



40 % of eligible costs
Maximum Contribution of $ 50 K
Max 5 K for USA; 7 K for Europe per Trip
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6.2.11 MDEIE: Etude de faisabilite d’un projet d’investissement
• Eligibility Criteria:
• Studies to assess technical or economic
parameters of investment /
commercialisation in Quebec

40 % of eligible costs for consultant’s fees

Maximum Contribution of $ 50 K
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6.2.12 MDEIE: Programme a L’entrepreneuriat ( PAEN )
• Program de soutien a l’amorcage
• Les programmes vise a soutenir l’amorcage
d’entreprises technologiques issues des resultats de la
recherche
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6.2.13 MDEIE: Programme de soutien aux projets ecomoniques
(PSPE))
• Volet Investissement
1.
2.
Creation d’une nouvelle entreprise ou l’expansion ( incluant la
modernisation) d’une entreprise existant don’t les depenses
admissibles se situent entre 250 k$ et 5 M$
Will provide loan up to 15 % : 3 yrs; 5 yrs ; 8 yrs ; interest free
3.
4.
Act as court of last resort
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6.2.14 MDEIE:
• 514 – 499 – 2550
• 1 866 680 1884
• www.mdeie.gouv.qc.ca
• www.entreprises.gouv.qc.ca
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7

7:0

7.1 SERVICES AUX ENTREPRISES

7.2 SERVICES AUX INDIVIDUES

(12 )
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7.1 SERVICE AUX ENTREPRISES




1% Training Investment
Online Placement
Internet Job Recruitment
HR COACHING AND MANAGEMENT
IMPROVEMENT
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7.1 EMPLOI QUEBEC H R GRANTS

25 % - 50 % GRANTS RE PROFESIONAL FEES
• Recruitment ; Pre Employment Testing And Selection
• Job Training including Train the Trainer How to Train
• Management Coaching and Mentoring
• Job Descriptions
• Performance Evaluation and Compensation Systems
• Employee Handbooks
37
7.2 :Emploi Quebec: Service for
Individuals







Employment Measures and Services
Découvrir
Young volunteers
Multiservice Room
Support for Self-Employment
Wage Subsidy
Manpower Training
38
7.2:Emploi Quebec: Service for Individuals






Return to Work Supplement
Social Integration
Job Readiness
Employment Services
Assistance For Disabled Persons
Assistance for Immigrants and Visible Minorities
39
7.2.1 EMPLOI QUEBEC

Manpower Assistance Programs
• Apprentice On the Job Training
( $ Amount Decided case by case
with EQ Counsellor )
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7.2.2 EMPLOI QUEBEC :
Special Circumstances
PRIIME :
 Immigrant & VISIBLE MINORITIES :


Hardship / Difficulty to Enter Job Market
CIT
 Mental or Emotional Difficulty (
grants up to 75 % of salary : (
variable time case by case)

• Private / semi private Placement Agencies ( eg. JEM )
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8.1 INSTRUCTIONAL LEARNING TOOLS
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8.2 MULTIMEDIA :
CORPORATE MESSAGES
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WRAP UP: “ LETS GET COOKIN “
Never Up : Never In




Steve Woloz Associates, Inc.
( Phone: (514) 944 8241
: Regular Email: s.woloz@swaassoc.com
: Wireless Email: s.woloz@rogers.blackberry.net
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