Wood Innovation Program — Component 2

• For investment projects: Up to 25% of eligible expenses, to a maximum of $1,000,000 per project.
• For studies (pre-feasibility, feasibility, market, business plan, etc.): Up to 50% of eligible expenses, up to $75,000 per study.
• Government financial assistance (all sources combined) must not exceed 75% of the total eligible project costs; a minimum private contribution of 25% is required.
• The grant for investment projects under $1M is paid in two installments (50% each); for projects of $1M or more, payment is in three installments (25%, 50%, 25%). For studies, the grant is paid in one installment upon approval of the final report.

• The applicant must be a legally constituted for-profit business or a consortium of such businesses, or a center for research, teaching, or knowledge transfer.
• The applicant must operate in the forest products industry, utilize products from this industry, or be involved in the manufacturing of forest equipment.
• The applicant must have an establishment in Quebec and carry out the activities arising from the project within Quebec.
• The applicant must submit all required documents with the application as specified by the program.
• The applicant must demonstrate the financial and technical capacity to complete the proposed project.

Who is eligible?

• Legally constituted for-profit companies or groups of such companies operating in Quebec
• Research centers
• Teaching institutions
• Knowledge transfer centers
• Organizations working in the forest products industry or utilizing forest products
• Organizations in the forest equipment manufacturing industry

Who is not eligible

• Government ministries or budgetary organizations.
• Businesses listed on the Register of enterprises ineligible for public contracts (RENA), including their registered subcontractors.
• Companies that have failed to meet obligations under previous financial assistance agreements after formal notice from a Quebec government ministry or agency.
• Organizations that do not meet high standards of integrity expected from recipients of public funds.
• Companies that are insolvent, bankrupt, or under bankruptcy protection proceedings.

Eligible expenses

• Direct costs of materials related to the project
• Purchase and installation fees for equipment directly linked to the project (including proportionate costs based on useful lifespan and wood usage ratio if applicable)
• Equipment rental costs directly tied to the project
• Acquisition and development fees for essential software
• Sampling and quality control expenses related to process development
• Patent or intellectual property protection fees
• Expenses for technological transfer reports, studies, or licenses
• Costs for work performed outside Quebec, if essential and with prior approval, within reasonable project limits
• Consulting and expert study fees
• Subcontracting expenses
• Salaries and mandatory social contributions for project-related personnel, up to the rate established by the Ministry
• Professional fees, within the Ministry's established limits
• Documentation fees (such as scientific articles, specialized reports, or technical books; for studies only)
• Certification and homologation fees (for studies only)
• Prototype and system production costs

Eligible geographic areas

• Quebec

• Clear demonstration of private sector participation in the project's financial structure.
• Eligibility and admissibility of the project and applicant according to program requirements.
• Admissibility of projected expenses and compliance with funding structure.
• Applicant's technical and financial capacity to successfully complete the project.
• Economic viability and coherence of the project, including realistic timeline and alignment with program objectives (e.g., innovation or transformation of lower-grade wood).

• All projects must include at least one measurable economic impact, such as an increase in annual production capacity, productivity, or product quality improvements, with supporting data required at both the start and end of the project.
• The number of projects funded per applicant or establishment is subject to annual limits, differing by project category.
• A minimum percentage of project expenditures must involve external purchases, validated with invoices.
• Any incomplete application will be returned to the applicant without evaluation.