Eligible costs
Eligible costs are incurred in Canada, are deemed necessary to the performance of the Project and are directly related to achieving the objectives for which the ISC funding was granted. Such eligible costs include:
- salary costs
- contractor's fees and sub-contracts
- travel costs in accordance with the National Joint Council Travel Directive
- reports and studies
- overhead (maximum amount of eligible costs is set at 15%)
- meaning those costs which, though necessarily having been incurred during the period of the performance of the Project activities for the conduct of the Eligible Recipient's business in general, cannot be identified and measured as directly applicable to the Project
- material cost
- meaning the costs of materials which can be specifically identified and measured as having been used or to be used for the performance of the Project and which are so identified and measured consistently by the Eligible Recipient's cost accounting system as accepted by the Minister or Equivalent
- patenting costs
- capital costs
- capital items (fixed assets) include equipment, testing tools, and instruments that have residual values as determined by Generally Accepted Accounting Principles (GAAP) at the end of the funding period. The eligible expense items allowed by the ISC are the cost of utilization/depreciation of capital item (fixed assets) specifically required for the delivery of the eligible project
For Phase 1, a minimum of two-thirds of the research or analytical effort must be performed by the awardee. For Phase 2, a minimum of one-half of the research or analytical effort must be performed by the awardee. Occasionally, deviations from these requirements may occur, and must be approved in writing after consultation with the department and in agreement with the opinion of the Minister or Equivalent.
Eligible costs are specified in individual Funding Agreements.
Pre-agreement costs
On a case-by-case basis, the program may consider supporting the inclusion of eligible costs a recipient incurred prior to the signing of the Funding Agreement but not earlier than the date on which a proposal has been submitted. Retroactively eligible costs shall not exceed 20% of total eligible costs. The Minister or Equivalent will not be obliged to pay incurred costs in the event an application is rejected.
Furthermore, even if an Applicant is advised that their project has been approved and the Applicant starts incurring costs, no costs are eligible for reimbursement unless a Funding Agreement is ultimately signed between the applicant and the Minister or Equivalent. Any costs incurred prior to signing of a Funding Agreement would be incurred solely at the applicant's risk without obligation of payment by the Minister or Equivalent.
Ineligible costs
- Land acquisition, leasing land, buildings (acquisitions and leasing), renovation or construction, and other facilities, real estate fees and related costs
- Financing charges, legal fees and loan interest payments
- Any goods and services costs which are received through donations or in kind
- Property taxes
- Lobbyist fees
Stacking limits
Total Canadian government assistance for all projects, including federal, provincial/territorial and municipal, will not exceed 100% of eligible costs funded. In no instances will the total Canadian government assistance be allowed to exceed the total of eligible costs.
Recipients will be required to inform the Minister or Equivalent of any government (federal, provincial, territorial, municipal) financial assistance they have requested and/or received towards the Eligible Activities prior to the Minister or Equivalent approving the grant.