Investments in Forest Industry Transformation (IFIT) — Capital Investment Projects

• A project proposal form
• Mandatory support documents
• For proposals involving new facilities in Canada, documentation supporting ownership of the company’s existing facility and how the new facility will be acquired, constructed, leased or rented during project timelines

Who is eligible?

• For-profit companies located in Canada
• Existing producers currently manufacturing forest products at an existing facility, such as pulp, paper, solid wood, or engineered wood producers
• New entrants entering the Canadian forest sector for the purpose of the proposed project
• Clusters, joint ventures and consortiums, if a for-profit company is designated as the lead applicant or lead funding recipient
• Foreign companies, if they have or propose a facility in Canada and the project is implemented in Canada

Eligible expenses

• In-kind contributions directly tied to the project
• Tangible in-kind expenses such as equipment contributed by a project partner
• Use of a partner’s laboratory as an in-kind contribution

Ineligible Costs and Activities

• Costs incurred prior to project submission or before a contribution agreement is signed by the applicant and Natural Resources Canada
• Costs associated with the production or export of softwood lumber
• Projects targeting wood pellet production for use as fuels under the Biomaterials and biochemicals category
• Traditional wood-based panel board projects under Next Generation Building Products, including oriented strand board, plywood and traditional decorative panels

• Eligible proposals are selected through a competitive process that assesses the technical and business viability of the proposed project.
• Rated criteria for Capital Investment projects include technical feasibility, innovation, partnerships, business plan, fibre supply, timing, value for investment, diversity and inclusion, and benefits to Canadians.
• Regional distribution across the country is an overall consideration for funding, although applications are not regionally weighted.
• Preference is given to projects with greater potential for replication across the sector.
• Preference is given to projects demonstrating a high proportion of total project costs leveraged from industry partners rather than other government funding, secure or confirmed partnerships, and use of wood fibre from currently underutilized sources without diverting fibre from existing higher-value uses.

• Register for a GCKey account and create a client profile in INTEGRO.
• Review the application form and the IFIT 2026 Applicant Guidebook for Capital Investment Projects available through NRCan’s Funding Portal.
• Complete the full project proposal and gather the supporting documentation.
• Submit the project proposal through NRCan’s Funding Portal in INTEGRO.

• NRCan will acknowledge receipt of an application or proposal within five business days of receiving it.
• Applications are screened against mandatory criteria, and those that meet the baseline requirements are assessed against rated criteria.
• The evaluation establishes a short list of highly ranked projects, and short-listed applicants advance to the due diligence phase.
• Corporate approval is required at the due diligence phase for short-listed projects being considered for funding, and projects that successfully complete due diligence move to negotiating a contribution agreement.
• NRCan will issue an official written funding decision within 100 business days of the closing date of the call for proposals, and will issue payments within 30 calendar days of receiving invoices if all conditions in the contribution agreement are met.

• An updated or enhanced proposal can be resubmitted if a previous IFIT proposal was declined.
• A company may apply for more than one capital investment project, but each project requires a unique project proposal form.
• There is no preference for small and medium enterprises over larger corporations and multinationals.
• A company’s previous interactions with the program do not determine eligibility for current funding opportunities.