Chemistry industry seeks innovation fund for plastics recycling technology in federal pre-budget submission
August 06, 2019
On August 2, the Chemistry Industry Association of Canada asked the Government of Canada to commit to the establishment of a new Plastic Technology Innovation Fund (PTIF) to promote the research and development of ground-breaking technology in plastic recycling and recovery innovation as part of its pre-budget submission to the Standing Committee on Finance and Economic Affairs.
The fund would include an initial allocation of $200 million and Natural Resources Canada would be responsible for assessing applications from the private sector and research communities for innovation in areas of product design and advanced plastics recycling and recovery such as chemical recycling, pyrolysis, gasification and energy recovery.
“There is no ‘one-size fits all’ solution to managing plastic waste. A variety of technologies and approaches will be needed to keep plastic waste out of the environment and in the economy,” said Bob Masterson, President and CEO of CIAC. “The innovation and ingenuity of the chemistry sector will be key in solving this problem.”
Other highlights of the submission include CIAC’s request for the reform the Federal Scientific Research and Development (SR&ED) program to help foster research and development in Canada. These reforms include:
- raising the investment tax credit to 20 per cent from the current 15 per cent;
- eliminating or substantially raising the upper limit for taxable capital phase-out range from the current $50 million; and
- reinstating capital expenditure eligibility that was phased out beginning January 1, 2013;
- eliminate the 20 per cent disallowance on arm’s-length consulting payments.
The SR&ED program provides more than $3 billion annually to over 20,000 claimants and is administered by the Canadian Revenue Agency. The proposed changes to the SR&ED program are required to ensure that Canada remains a destination for global research mandates.
Finally, the CIAC is proposing the Federal Government re-authorize the existing funding for the Chemicals Management Plan (CMP) and specifically develop and expand all aspects related to international development to share Canada’s expertise.
To read the full submission, please see: The Chemistry Industry 2020 Federal Pre-Budget Consultation Submission to the Standing Committee on Finance and Economic Affair