Projects contribute to a cleaner environment and assist Canadian companies to increase their market competitiveness. A component activity identifies emerging energy-efficient technologies capable of providing significant environmental benefits and having a good market potential. The program finds partners for field trials and monitors performance. It also helps theses suppliers find potential markets. The cost of technology development is shared with industry and other stakeholders.
Contributions are repayable based on the commercial success of the development project.
While IERD's contribution averages about 35 per cent, it can be as high as 50 per cent depending on technical risk, the potential for energy savings, and the degree to which the technology could improve Canada's economic competitiveness. They come from all Canadian industrial sectors, including the metals and minerals, pulp and paper, buildings, chemicals, clothing and textiles, transportation, electrical production and food industries. Administered jointly by CETC and Revenue Canada, Class 43.1 is the Accelerated Capital Cost Allowance Program for the manufacturing and process industries. A new subsection of this class allows listed energy conservation and renewable energy equipment to be written off at a thirty per cent declining balance rate. At the request of an individual company or Revenue Canada, CETC reviews applications under Class 43.1 to determine if they comply technically with the regulations.