The Automotive Innovation Fund (AIF) was established in 2008 to support research and development projects to build more fuel-efficient vehicles. Managed by Industry Canada, the AIF reviews proposals of more than $75 million over 5 years, including vehicle and powertrain assembly, large-scale automotive Innovation, and other R&D initiatives.
For example, in 2009, AIF awarded$54.8 million (up to $365 million by 2013) to Linamar Corporation for their development in fuel efficient powertrains, including:
– The development of powertrain components that contribute to increased fuel efficiency
– The development of advanced production processes to manufacture various powertrain components
When applying for the AIF, it is required that the total assistance from all levels of government be disclosed, including SR&ED. Eligible costs are limited to non-recurring costs and include labour, material, overhead, equipment, and other costs directly attributable to the project.