If you are planning a large, collaborative innovation project in Ontario’s forest sector, understanding eligible project costs under the Forest Sector Investment and Innovation Program (FSIIP) is critical. The Collaboration Projects stream supports major investments, but only certain expenses can be counted toward the minimum $3 million project size and the 30% cost-share limit.
This guide breaks down what costs are typically eligible, what is excluded, and how to structure your budget so it aligns with program rules.
The Forest Sector Investment and Innovation Program — Collaboration Projects stream supports strategic, multi-partner investments that modernize and diversify Ontario’s forest sector. Projects must involve at least three partners and include one Ontario-based for-profit forestry or wood products company.
Because funding only covers a portion of total costs, your budget must clearly separate eligible and ineligible expenses.
While the province assesses costs on a case-by-case basis, collaboration projects under FSIIP typically include the following eligible project costs, provided they are directly tied to the approved project scope.
Eligible capital expenses often include:
These costs must be new, essential to the project, and used primarily in Ontario.
You may be able to include:
General overhead or unrelated administrative labour is typically not eligible.
Collaboration projects often include strong innovation components. Eligible costs can include:
Academic and not-for-profit research partners can include their eligible project-related costs, as long as they are part of the approved collaboration.
Eligible materials are those consumed or transformed during the project, such as:
Materials must be directly attributable to the project, not routine operations.
Some project coordination expenses may be eligible, including:
These costs must be reasonable and proportional to the project size.
Tools like GrantHub’s eligibility matcher can help you filter programs by province and industry in seconds and spot cost-share rules early.
Even strong projects can run into trouble if ineligible expenses are included in the budget. Common exclusions under FSIIP collaboration projects include:
Including these costs in your total may weaken your application or delay approval.
Counting ineligible costs toward the $3 million minimum
Only eligible project costs count toward the minimum threshold. Ineligible expenses do not help you qualify.
Overstating labour costs
Staff time must be directly tied to project activities. General management time is often excluded.
Weak cost allocation between partners
Each partner’s role and expenses must be clear. Vague cost-sharing arrangements raise red flags.
Assuming 30% funding applies to all expenses
The 30% contribution applies only to approved eligible costs, not your full project budget.
Q: Do all partners need to incur eligible project costs?
Not necessarily. However, each partner’s role must be clearly defined, and costs claimed must relate directly to their contribution to the project.
Q: Can academic institutions include overhead costs?
Only project-specific and reasonable costs are typically eligible. General institutional overhead is often excluded unless explicitly approved.
Q: Are costs incurred before approval eligible?
No. Expenses incurred before formal project approval are generally not eligible for reimbursement.
Q: Is the grant funding taxable?
Yes. Grant funding is generally considered taxable income. Confirm the treatment with your accountant.
Q: Do we need to prove financial need?
Yes. Applicants must demonstrate that government funding is required for the project to proceed as proposed.
After the FAQ section: GrantHub tracks hundreds of active grant programs across Canada — check which ones match your business profile.
Before you finalize your collaboration budget, map each cost back to a clear project activity and partner role. This makes it easier to defend eligibility during review. GrantHub helps you compare forest sector funding programs and understand cost-share rules, so you can focus on building a strong, compliant application.
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