NGen — AI For Manufacturing Challenge (AI4M)

Who is eligible?

• For-profit organizations in Canada engaged in advanced manufacturing
• Not-for-profit organizations that facilitate and fund research and development for the manufacturing ecosystem, primarily funded by the private sector
• Non-federal Crown corporations funded through commercial activities
• Indigenous organizations involved in manufacturing or technology

Who is not eligible

• Other publicly funded not-for-profit organizations that do not primarily receive funding from private-sector or industry organizations.
• Post-secondary institutions (e.g., universities and colleges).
• Federal Crown corporations.
• Government departments or agencies.
• International organizations, including offshore companies and research organizations without a registered business presence in Canada.

Eligible expenses

• Salaries and wages for personnel in Canada directly involved in the project, including certain employer-paid benefits as required by law.
• Overtime premiums proportionally related to project work.
• Subcontracting and consultancy fees for essential work provided by external experts, performed in Canada and not exceeding 40% of total project costs.
• Purchase, rental, operation, and maintenance of new equipment directly linked to project objectives, up to 45% of total project costs.
• Materials and supplies consumed by the project, purchased and used during the project timeline.
• Direct costs for the use of existing equipment (such as labour, materials, or separately metered utility costs specifically for project activities).
• Reasonable travel expenses incurred exclusively for advancing the project, in line with government guidelines.
• Service fees and software subscription or license fees directly related to project activities.
• Additional costs of rented factory or lab space for the project, for contracts started after the project commencement date.
• Cost of renting facilities for project-related conferences and associated telecommunication costs.
• Publication costs for project results (excluding costs related to production, selling, or marketing).
• Reasonable costs for patent protection of foreground IP developed in the project (for SMEs only, up to specified limits), and potentially for background IP if directly related to the project.

Eligible geographic areas

• Businesses registered in Canada with a value-added presence in Canada (beyond a sales office).

• Project administration fees of 5% of the total project cost, paid in two installments, are a mandatory, non-refundable condition for funding.
• Projects must be completed, and all expense claims submitted by January 31, 2027.
• NGen applies a 15% holdback on funding until all project claims and reporting requirements are fulfilled.
• All progress claims must be supported with relevant documentation and will be reimbursed on a quarterly basis.