FUNDING THE FUTURE — GOVERNMENT INCENTIVES FOR 3D PRINTING

3D PRINTING HAS THE POTENTIAL TO ADD SIGNIFICANT VALUE TO THE MANUFACTURING SECTOR. THE ABILITY TO PRINT THREE DIMENSIONAL OBJECTS FROM DIGITAL FILES ENHANCES CONSUMER CHOICE AND CAN GREATLY ACCELERATE NEW PRODUCT DEVELOPMENT LIFECYCLES.

Opportunities for Manufacturing

The drive for adopting 3D printing or “additive manufacturing” is supported by an increasingly demanding consumer and the need for product customization. The ability for economic low-volume production offered by the technology is ideal. This enables product customization at relatively lower costs, and can also greatly reduce those associated with the product research and prototyping phases.

While 3D printing has long been used for prototyping, manufacturers are now seizing the opportunities to expand its applications beyond this to give consumers exactly what they want. The applications continue to grow: from highly complex automotive and mechanical parts and 3D-printed vehicles, to personalized consumer goods and even custom medical devices, the opportunities appear limitless.

Technological Innovation

Those involved in the engineering of 3D printers are also making significant strides towards machines that can handle the requirements for varying temperatures and consistencies associated with 3D printing. Increasing affordability of the technology and the widespread appeal for individualization has many speculating that 3D printing is set to transform the future of manufacturing.

Challenges

While this holds great promise for the future of the manufacturing sector, both those involved in the engineering of 3D technologies, as well as those involved in production, face a number of challenges. These challenges include the costs associated with commercializing and implementing new technology.

BDO’s Scientific Research & Experimental Development (SR&ED) and Government Incentives Practice team can assist companies to access this much needed funding.

WORKING WITH BDO’S GOVERNMENT INCENTIVES TEAM

Our highly skilled multi-disciplinary team of over 65 engineers, scientists and entrepreneurs is 100% dedicated to the area of government incentives. We can assist you to access the most appropriate funding depending on your business needs.

Whether you are looking to explore the potential of 3D printing, are a producer of a 3D product or are involved in technological innovation, our team can help you reach your next stage of growth. Our services support the entire lifecycle of the claim process, from identifying eligible activities, structuring projects, technical report writing and project costing, to after claim audit support. We also provide advice regarding operational or business models and internal systems and control recommendations to enhance claim quality and minimize risk.

Why Choose BDO’s Government Incentives Team?

• A team with deep industry expertise• Excellent track record of success with CRA• A comprehensive approach that supports the entire lifecycle of

the claim process• On-going identification of funding opportunities• Proven project management methodology that spans multiple

divisions and/or projects• Fair and transparent fees and flexible payment methods

BDO’S MANUFACTURING INDUSTRY SERVICES TEAM

In Canada, BDO serves over 3,000 clients within the traditional and emerging areas of manufacturing and distribution. Our expertise includes automotive, general and process manufacturing, as well as transportation and distribution.

Successful companies have refocused to meet new market conditions, invested in innovative products and processes to stabilize finances, and generate future growth opportunities. Our experience working with clients across all sectors in the industry gives us a significant advantage. We know the issues affecting businesses in your industry today, and are able to assist you with a full range of financial and advisory expertise.

Our professionals actively participate with key international and national organizations in the sector; in Canada this includes Canadian Manufacturers and Exporters (CME), and the Automotive Parts Manufacturers Association (APMA).

CONTACT:

Paul Boucher Partner Advisory Services Practice SR&ED

Direct: 905 272 7831 Mobile: 905 334 4784 pboucher@bdo.ca

1 City Centre Drive Mississauga ON L5B 1M2 905 270 7700 www.bdo.ca

BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.

FUNDING THE FUTURE — GOVERNMENT INCENTIVES FOR 3D PRINTING

EXPLORING POTENTIAL

Growing Forward 2 Program — Federal and Provincial

Aimed at encouraging innovation, competitiveness, and market development in Canada’s agri-food and agri-products sector by offering cost-share for eligible projects.

For companies interested in exploring the potential of 3D food printing, assistance may be available in the following areas:

• Capacity building such as courses and training and planning• Project implementation

Funding assistance includes up to 50% cost-share for Capacity Building and up to 35% cost-share for implementation projects.

RESEARCH AND DEVELOPMENT

Scientific Research and Experimental Development (SR&ED) — Federal

Designed to encourage Canadian businesses to conduct R&D in Canada to develop new, improved, or technologically advanced products or processes.

This may include:

• Salaries and wages• Materials• SR&ED contractors• Overhead costs• Third party payments to other research entities,

including universities

Rate of returns are up to 68.41% on salaries and wages, 44.13% on materials, and 35.31% on SR&ED contracts. As of 2014 — does not cover capital (equipment) purchase or lease costs.

HIRING

Hiring incentives — Federal

• The NRC IRAP Youth Employment Program — provides a 50% wage subsidy to hire highly skilled post-secondary graduates, up to a maximum of $30,000, to work on an innovative project.

• Connect Canada Internships — available to companies who hire a graduate student or a post-doctoral fellow to assist with an advanced R&D project, providing $5,000 for a 4 – 6 month internship.

• Co-operative Education Tax Credit — may cover 25% (or 30% for qualifying small businesses), up to a maximum of $3,000, of wages for an Ontario student enrolled in a co-operative education program.

NEW EQUIPMENT

CME SMART Advanced Technologies for Global Growth — Southern Ontario

Provides support for Southern Ontario manufacturers who are exporting, planning to export, or selling into a supply chain, to conduct technology assessments and adopt advanced technologies.

The program will support two types of projects:

• Advanced technology assessment by qualified professionals• Adaptation/adoption project that will focus on improving productivity

The program offers up to 50% in funding to a maximum of $15,000 for Advanced Technology Assessment, or up to 35% to a maximum of $100,000 for Advanced Technology Adaptation/Adoption projects.

GLOBAL GROWTH

Export Market Access (EMA) — Ontario

Designed to help small and medium-sized enterprises increase their access to global markets.

Eligible costs may include:

• Participation in international trade shows• Development of electronic media• Promotional materials and generic branding material• Market research to enable more precise international market targeting• Foreign bidding projects against foreign competitors

The program offers 50% in funding, generally ranging from $5,000 to a maximum of $30,000.

TRAINING

Training incentives — Federal and Provincial

• Yves Landry Foundation Global AIME Initiative — for the development of highly skilled personnel in any area of innovation. Up to $50,000 non-repayable is available toward training or up-skilling of workers in southern, central, or eastern Ontario.

• Canada-Ontario Job Grant — for employers who wish to purchase training for their employees. Employers contribute one-third of the total costs, training must be through an eligible third party trainer. Up to $10,000 in government support per person.

• Apprenticeship Job Creation Tax Credit (AJCTC) — for employers in a prescribed trade, this is a non-refundable credit that can be used to reduce Federal corporate income taxes. For each eligible apprentice, the AJCTC equals the lesser of $2,000 or 10% of the eligible salary and wages paid or payable.

Learn more about our Government Incentives Services:

http://www.bdo.ca/en/Services/Advisory/SR-ED/pages/default.aspx