Key Dates
Call for proposals opens:
May 20, 2026
Final date to submit a proposal:
July 31, 2026
Proponents notified following evaluation:
Mid-September 2026
Contract issued and start of projects:
Early-October 2026
Note: A webinar will be held June 17, 2026 at 10 am MT to respond to questions from applicants.
Please email the program managers to receive the invitation.
Deadline for funding recipients to complete project activities: March 31, 2028
Program Objectives
The Innovation Support Program (ISP) supports Alberta value-added wood product manufacturers in making capital investments that would not otherwise occur, or would not occur at the same scale or timing, without program support. By cost-sharing eligible capital expenditures, ISP helps Alberta manufacturers:
- Expand manufacturing capacity to meet current and future demand
- Improve productivity, efficiency, and product quality through better equipment and automation
- Enable production of new or improved wood products, systems, or specifications
- Reduce exposure to market cycles by diversifying product mix and end markets
- Expand the use of underutilized Alberta species such as Aspen
- Create and retain skilled manufacturing jobs in Alberta
- Leverage private-sector investment alongside program funds to maximize sector-wide impact.
Is your project a fit?
ISP proposals are evaluated on whether the investment meaningfully advances one or more of the objectives above, and whether it satisfies the Incremental Innovation Requirement described in the next section. Projects that replace end-of-life equipment with like-for-like replacements, or that would proceed on the same timeline without program support, are unlikely to qualify.
Incremental Innovation Requirement
The ISP funds capital investments that are incremental and innovative, meaning they would not occur, or would not occur at the same scale or timing, without program support. Your proposal must demonstrate that the investment falls into at least one of the following three categories.
- Scale-Up: The investment enables you to acquire larger or more capable equipment than you would otherwise purchase. Example: a millwork shop planning to buy an entry-level 3-axis CNC router uses ISP support to acquire a larger-format production 3-axis machine with automated tool changer, increasing panel throughput and reducing per-unit labour on the cabinet and casework it already produces.
- Acceleration: The investment pulls a planned capital expenditure forward in time, capturing productivity gains sooner. Example: a truss manufacturer has a panel nesting optimizer on its 3-year capital plan but uses ISP funding to acquire it now, reducing material waste and increasing throughput 12 to 18 months earlier than planned.
- Capability Jump: The investment enables the company to acquire equipment or technology it would not pursue on its own due to cost, risk, or uncertainty. Example: a truss manufacturer uses ISP support to add a finger-jointing line with adhesive application and press capability, enabling in-house production of finger-jointed lumber for longer-span chords and verticals, removing dependence on external suppliers for long-length stock and unlocking truss designs the company previously had to decline or outsource.
Note: a single capital investment will likely fall into more than one category. Identify each category your proposal addresses and explain the basis for each.
“Value-Added Wood Product” Defined
To qualify for ISP funding, your company must be an Alberta-based for-profit business that falls into one of two categories:
- Small or medium-sized value-added manufacturer: a company with fewer than 250 employees globally that manufactures value-added wood products. These are wood-based products that have been processed or modified to increase their value or functionality, including milling, machining, or assembly into secondary, tertiary, or finished products such as roof and floor trusses, wood building components and systems, prefabricated wood buildings, doors, windows, flooring, millwork, panelling, siding, fencing, furniture, cabinets, stairs, and other wood or hybrid products.
- Manufacturers producing wood products for Alberta’s value-added sector: a producer proposing a capital investment that will enable the manufacture of outputs specifically intended for further value-added manufacturing uses in Alberta. The proposal must demonstrate a clear link to downstream Alberta value-added use.
Amount of Funding
Minimum: $30,000
Maximum: $250,000
Underutilized Species Funding
Projects that incorporate underutilized hardwood species—such as Aspen—into their manufacturing processes may be eligible for additional funding. This support extends not only to projects that plan to use these species in product development, but also to those exploring ways to integrate them into their future production strategies as part of their overall capital investment plan. By prioritizing the use of underutilized resources, these projects can contribute to improved sustainable practices and open new market opportunities for lesser used Alberta species.
Cost Sharing Requirement
ISP requires the recipient to contribute at least 50% of the total eligible project cost. The program will provide up to 50% of the total eligible cost to a maximum ISP contribution of $250,000.
The cost sharing requirement ensures recipients have a direct stake in the project’s success and program funds are used efficiently. Funding decisions depend on the number and quality of proposals received.
There are two acceptable forms of cost sharing from the proponent:
- Cash contribution: a minimum 50% cash contribution from the proponent is required. Proposals with a higher cash contribution as a percentage of total project cost will be ranked more favourably under the evaluation criteria.
- Third-party contributions: contributions from other organizations that provide support for the project may count toward the proponent’s share. Third-party contributions must be documented / disclosed and verifiable at the proposal stage.
Applicant Eligibility
To qualify for ISP funding, your company must be an Alberta-based for-profit business that falls into one of two categories:
- Small or medium-sized value-added manufacturer: a company with fewer than 250 employees globally that manufactures value-added wood products. These are wood-based products that have been processed or modified to increase their value or functionality, including milling, machining, or assembly into secondary, tertiary, or finished products such as roof and floor trusses, wood building components and systems, prefabricated wood buildings, doors, windows, flooring, millwork, panelling, siding, fencing, furniture, cabinets, stairs, and other wood or hybrid products.
- Manufacturer expanding into value-added feedstock preparation: a wood producer proposing a capital investment that will enable the manufacture of wood feedstock or inputs specifically intended for further value-added manufacturing in Alberta. Equipment that converts outputs into manufacturing-ready inputs for Alberta value-added shops. The proposal must demonstrate a clear link to downstream Alberta value-added use.
Examples of eligible value-added wood products and systems:
- Roof trusses, laminated beams and panels (e.g., LVL, glulam, CLT, DLT, NLT)
- Off-site, factory-built, prefabricated or modular wood frame or mass timber components and buildings
- Wood walls/wall systems, and flooring/floor systems
- Wood doors and windows
- Millwork, cabinets, furniture, paneling
- Fencing, partitions
- Manufacturer planning to produce feedstock for value-added manufacturing in Alberta
Your Proposal
We expect that most ISP proposals will focus on a single, well-defined capital investment: one piece of equipment, one production line, or one integrated system acquired and installed for a clear manufacturing purpose. This is the most straightforward proposal type and the easiest to evaluate.
Describing the innovation in your proposal. Your proposal should clearly explain what the investment enables your company to do that it cannot do today, or cannot do at the same scale, quality, or cost. This is the core of the Incremental Innovation Requirement. Strong proposals identify the specific category or categories (Scale-Up, Acceleration, or Capability Jump) the investment addresses and explain the basis for each, with reference to the company’s current operations, equipment, and market position.
Bundling related equipment. Bundling is acceptable when the items form a functionally integrated system that delivers a single capability. For example, a molding finger-jointing line may reasonably include the jointer, adhesive applicator, press, and in-feed conveyor as one bundled investment, because none of those components delivers the intended capability on its own. Bundling is not appropriate when the items are independent upgrades that happen to be purchased at the same time. Proposals with unrelated equipment acquisitions should be submitted as separate applications.
Supporting activities. A small portion of the project budget may be allocated to activities directly required to commission and operationalize the capital investment. Examples are engineering, transportation, installation, commissioning, operator training, software configuration, or safety certification. These activities must be essential to bringing the equipment into productive use; general business development, marketing, or unrelated professional services are not eligible under ISP.
Commercialization of underutilized hardwood species. Submissions that propose to manufacture new products with an underutilized Alberta species such as Aspen are encouraged as they should lead to the development of new opportunities for species that are not fully commercialized in Alberta.
Eligible and Related Activities
Capital Equipment and Machinery Acquisition
The ISP supports the acquisition of manufacturing equipment and machinery that represents an incremental and innovative investment for the applicant. To be eligible, the proposed investment must satisfy the incrementality requirement described in the Program Objectives section (one or more of Scale-Up, Acceleration, or Capability Jump).
Eligible related activities that could be included in your proposal and might be considered for funding:
- Purchase of equipment by wood suppliers for Alberta’s value-added sector that is supported by letters of intent, supply agreements, or documented customer commitments from the sector, and the share of the new capacity committed to Alberta value-added use
- Engineering directly related to the equipment
- Transportation of the equipment to your facility
- Software and controls that are integral to the operation of the acquired equipment
- Installation and commissioning of the acquired equipment, including necessary facility modifications directly required to accommodate the equipment
- Training directly related to the operation of the acquired equipment. Employee training on the new equipment or machinery is eligible, delivered through in-house or supplier training, online or institutional training, or mentoring. Employee wages while in training are not an eligible expense.
Feedback on the Status of Your Proposal
Once you submit your proposal via the program email address (avawpp@gmail.com), you will receive several emails from the program.
Email 1: Confirmation of receipt upon submission
Email 2: Notice of approval or rejection following evaluation
Email 3: Contract prepared and emailed for review and signature
Transparency & Fairness
A proposal Evaluation Committee made up of impartial experts will review and rank all completed submissions based on best practices.
Eligible Expenses
Costs may include:
Capital Equipment:
- Purchase price of manufacturing equipment and machinery that delivers the incremental innovation described in your proposal, or
- Purchase price of equipment and machinery supporting downstream Alberta value-added manufacturing
Note: equipment and machinery must be purchased after the signing of the contribution agreement; pre-signed purchases are not reimbursable
ISP will also consider the following expenses when they are directly required to bring the capital investment into productive use:
Directly related project expenses:
- Freight and delivery to the applicant’s facility
- Engineering design related to the equipment, installation, commissioning, and calibration by the equipment supplier or qualified contractor
- Facility modifications directly required to accommodate the equipment
- Software licenses and controls integral to equipment operation
- Training provided by the equipment supplier or a qualified third party
Ineligible Expenses
- Land, buildings, vehicles, overhead, depreciation and salaries
- Establishing or contributing to reserve, contingency, or working-capital accounts
- Donations to other organizations
- Monitoring, modelling, or infrastructure projects
- Academic, basic or pure research
- Business development, market development, IT systems, marketing, communications, websites, social media, and any training not directly required to operate the funded equipment
- Costs associated with the production or export of softwood lumber products
- Taxes, duties, brokerage, and other pass-through charges recoverable by the applicant
Recipient Reporting
A project report template will be provided to funding recipients and will cover progress compared to the proposal, challenges encountered, next steps, and an expense report. A standardized expense report template will also be provided.
Informal progress updates will be expected following the signing of the contribution agreement. For ISP capital projects, reporting milestones will typically be structured around the lifecycle of the investment itself: equipment ordered, delivered, installed, commissioned, and brought into productive use. Specific milestones and their timing will be negotiated during the Statement of Work process and reflected in the contribution agreement.
A final project report is due by May 30, 2028.
Deliverables
The key deliverable for every ISP project is installed, commissioned, and operational capital equipment or technology that delivers the incremental innovation described in the funded proposal.
Recipients may be required to provide evidence:
- Procurement stage: purchase orders, supplier contracts, and payment records
- Delivery stage: delivery receipts and supplier confirmation
- Installation stage: installation photos or video, and contractor or supplier sign-off
- Commissioning stage: commissioning reports, operator training completion records, and first-production documentation
- Outcome stage: measurable results attributable to the investment, such as production volume changes, new product lines in market, productivity gains, employment changes, or new customer contracts. Specific outcomes are based on each proposal and will be included in the Statement of Work (SOW) and could include revenue attributable to the new capability, jobs created / retained, private co-investment actually deployed.
Resource Library
2024 Economic Impact Report, AFPA
2024 State of Canada’s Forests, NRCan
2025 Alberta’s Forest Economy
