Top Canadian Manufacturing Grants & Tax Credits for 2025

Manufacturers in Canada can access a diverse range of grants and loans to support strategic growth initiatives. In fact, the manufacturing sector is one of the primary beneficiaries of government funding, with more financial support available compared to any other industry. Both provincial and federal governments provide tailored funding opportunities, ensuring that manufacturers across the country have the resources they need to innovate, expand, and enhance productivity.

Manufacturing grants, loans, and tax credits can drive key business initiatives, including technology adoption, facility upgrades, export growth, research and development, as well as workforce hiring and training.

Creating and implementing a strategic government funding plan begins with identifying the grants and loans that best support your upcoming manufacturing projects. This is where partnering with our team offers significant value. By leveraging our extensive resources, you can pinpoint the most relevant funding opportunities. Our experts in Canadian government grants and loan applications will guide you through the matchmaking process to ensure you access the right financial support. Reach out to our team of government funding experts today to start a conversation about securing funding for your next growth initiative.

Create a Strategic Funding Plan to Maximize Growth Opportunities

Before accessing government funding for manufacturing, it’s essential to develop a comprehensive funding strategy. While individual grants, loans, and tax credits can be utilized for specific projects, integrating these financial resources into your broader growth plan offers greater long-term benefits.

Government funding plans are a proactive options to offset a portion of all strategic project costs with manufacturing grants, loans, and tax credits.

A well-structured government funding plan proactively offsets a portion of costs for various initiatives, such as technology adoption, expansion, and R&D. To start, identify all key investments over the next 12 to 24 months. With this roadmap, aligning relevant funding programs becomes simpler, whether you choose to navigate this independently or with the help of our team of Canadian government funding experts.

Please note: Agri-food manufacturers will find more applicable funding programs from the Top 4 Funding Programs for Ontario’s Agri-Food Industry.

Top Canadian Manufacturing Grants, Loans, and Tax Credits

Offered by the Government of Canada, the following manufacturing funding programs are designed to support businesses nationwide. Learn how these resources can drive innovation, foster growth, and enhance your competitiveness.

Scientific Research and Experimental Development (SR&ED)

Each year, over 20,000 companies claim tax incentives through the SR&ED program, receiving more than $3 billion in tax credits, with the federal government contributing over $1 billion. Designed to stimulate research and development, this program encourages Canadian businesses to innovate and advance their technologies.

This program provides tax credits of up to 69% of labour and overhead costs, up to 36% of costs for contractors, and up to 45% of material costs. The expenses must be commensurate with the needs of the scientific research and experimental development activity taking place within the company. Learn more about the eligibility criteria for SR&ED projects.

Learn more about the Scientific Research and Experimental Development (SR&ED) program and how your business may be eligible to receive tax credits through this program.

Industrial Research Assistance Program (IRAP)

The Industrial Research Assistance Program (IRAP) provides funding for technical and research-driven projects aimed at addressing innovation challenges. This support covers initiatives such as software implementation, productivity enhancements, and production design or marketing efforts. However, please note that this program is not intended for training projects.

• Amount: Up to $10M, non-repayable grant with 80% of direct labour and 50% of sub-contractor expenses.
• Eligibility: 1–500 people on payroll; 2 years incorporated with internal technical R&D expertise.

Learn more about the Industrial Research Assistance Program (IRAP) program.

CanExport

CanExport supports Canadian exporters by funding marketing and international expansion efforts. The program enhances brand visibility and sales in global markets through activities such as trade show participation, marketing initiatives, packaging updates, and market research.

• Amount: Up to 50% of project costs to a maximum of $50,000 in non-repayable funding per project. Up to two applications can be submitted per government fiscal year (April 1 to March 31).
• Eligibility:
  • Be a for-profit organization;
  • Earn annual revenues ranging from $100,000 to $100,000,000;
  • Maintain 1 to 500 full-time employees;
  • Be incorporated federally or classified as a limited liability partnership (LLP);
  • Create eligible project expenses of $20,000 or more; and
  • Be financially stable and able to pay all project expenses not covered by the program. Businesses in the agricultural or agri-food sector are NOW eligible for CanExport grants.

Learn more about the CanExport funding program.

Canada Job Grant (CJG)

The Canada Job Grant (CJG) is a federal program that helps reduce the cost of third-party skills training for both new and existing employees. Available nationwide, the program is tailored by each province and territory to better suit the unique needs of their local workforce and business environments.

• Amount: Non-repayable grant contributions of 50%–100% of training costs (i.e., course, exams, textbooks, software resources, etc.) to a maximum of $5,000 to $15,000 per trainee.
• Eligibility: Canadian small–medium-sized enterprise (SME) with $2 million liability insurance. Trainees must be a permanent Canadian citizen or granted refugee status.

Learn more about the Canada Job Grant (CJG) program and each of its provincial variants.

Innovative Solutions Canada (ISC)

The Innovative Solutions Canada (ISC) program provides government grants and procurement contracts to drive technology research, development, and commercialization. This program helps start-ups and SMEs overcome technological challenges, enabling them to create products and services in demand globally, while also enhancing government operations.

• Amount:
  • Phase 1: Grants up to $150,000;
  • Phase 2: Grants up to $1 million; and
  • Phase 3: Government procurement contracts with no fixed maximum.
• Eligibility: For-profit, privately held Canadian businesses with fewer than 499 FTEs.

Learn more about the Innovative Solutions Canada (ISC) program.

Innovation for Defence Excellence and Security (IDEaS)

IDEaS is a federal government procurement program managed by the Department of National Defence (DND). It focuses on identifying pre-commercial military and defense technologies that can help address the current challenges faced by Canada’s Armed Forces.

• Amount: Dependent on the challenge being responded to, applicants could earn a maximum of $20 million per project.
• Eligibility: All organization types are eligible to apply. Applicants must demonstrate at least 50% Canadian content for goods and services.

Learn more about the Innovation for Defence Excellence and Security (IDEaS) program.

Strategic Innovation Fund (SIF)

The Strategic Innovation Fund (SIF) offers Canadian industrial and technology-based businesses financial support to fuel company expansion and R&D of products, processes, and services.

• Amount: Minimum funding contribution of $10 million per project. Type of financial support awarded is at the discretion of the program; this can consist of a combination of repayable financial support and/or financial reimbursements up to 50% of project costs.
• Eligibility: Incorporated Canadian businesses with high growth potential and the ability to drive innovation.

Learn more about the Strategic Innovation Fund (SIF) program.

Top Manufacturing Grants Ontario

In addition to the Canadian manufacturing grants and loans mentioned above, manufacturers based in Ontario may be eligible for additional provincially funded incentives. These targeted programs are designed to support specific regional needs and include a variety of funding opportunities aimed at fostering innovation, productivity, and growth.

Ontario Automotive Modernization Program (O-AMP)

O-AMP helps automotive businesses improve productivity through technology adoption projects. It builds off the success of the former Automotive Supplier Competitiveness Improvement Program (ASCIP) and focuses on integrating innovative equipment that reduces costs and expands manufacturing capabilities.

• Amount: Up to 50% of eligible project costs to a maximum $100,000 in Ontario government grants (cost-sharing contributions).
• Eligibility: Ontario automotive businesses with fewer than 500 employees. At least 50% of revenue must come from the automotive supply sector.

Learn more about the Ontario Automotive Modernization Program (O-AMP) program.

Business Scale-up and Productivity Program (BSP) Southern Ontario

BSP accelerates company growth and helps businesses adopt and adapt innovative technologies that support productivity. Funding supports early adoption or adaptation of innovative technologies and processes, commercializing/producing new products or processes, expanding management capacity, and researching/developing export markets.

• Amount: Repayable contribution (no-interest loan) of up to 35% of eligible project expenses to a maximum $10 million. Minimum ask of $500,000.
• Eligibility: Southern Ontario businesses, incorporated and profitable for three or more years. Must have five or more employees. Pre-revenue companies and those with fewer than five employees require proof of scale-up potential.

Learn more about the Business Scale-up and Productivity Program (BSP) Southern Ontario program.

Eastern Ontario Development Fund (EODF)

EODF provides financial support to Canadian SMEs expanding operations and creating jobs in Eastern Ontario. Funding supports investing in new capital equipment, improving existing operations and processes, and pursuing new market opportunities.

• Amount: Up to 15% of eligible expenses to a maximum $1.5 million in non-repayable grant funding for projects with budgets up to $10 million. Projects with budgets that exceed this amount may be eligible to receive a combination of grants and loans of up to $5 million.
• Eligibility: Applicants must be incorporated for at least three years, have 10 or more full-time employees, and operate in Eastern Ontario. Projects must create at least 10 new full-time positions.

Learn more about the Eastern Ontario Development Fund (EODF) program.

Southwestern Ontario Development Fund (SWODF)

SWODF offers funding to support projects that involve investing in new capital equipment, developing skills, enhancing productivity, and developing new infrastructure.

• Amount: Up to 15% of eligible expenses to a maximum $1.5 million in non-repayable grant funding for projects with budgets up to $10 million. Projects with budgets that exceed this amount may be eligible to receive a combination of grants and loans of up to $5 million.
• Eligibility: Applicants must be established for at least three years, have 10 or more full-time employees, and operate in southwestern Ontario. Projects must be completed within a two to four-year timeline and create at least 10–15 new full-time positions depending upon project size and company size.

Learn more about the Southwestern Ontario Development Fund (SWODF) program.

Top Manufacturing Grants Western Canada

In addition to the Canadian manufacturing grants and loans listed above, manufacturers based in British Columbia, Alberta, Saskatchewan, and Manitoba may also qualify for provincially funded or targeted incentives. These include:

Western Business Scale-up and Productivity (BSP) Program

BSP helps businesses with high-growth potential adopt/adapt innovative technologies that support productivity, grow operations, and increase exports to global markets.

• Amount: Repayable contribution (no-interest loan) of up to 50% of eligible project expenses to a maximum $5 million per project and $10 million per applicant.
• Eligibility: Must have maintained profitable operations in Western Canada (British Columbia, Alberta, Saskatchewan, or Manitoba) for at least two years and be incorporated at the time of application.

Learn more about the Western Business Scale-up and Productivity (BSP) Program.

Top Manufacturing Grants Atlantic Canada

In addition to the Canadian manufacturing grants and loans listed above, maritime-based manufacturers may also qualify for provincially funded or targeted incentives. These include the following:

Atlantic Innovation Fund (AIF)

AIF is a Canadian government funding program dedicated to supporting innovative technology research projects. The program enables both private-sector research and collaborations with academia and research institutions. Projects should focus on commercially viable technology development or adaptation.

• Amount: Business-led projects may receive up to 75% of expenses; non-profit applicants may receive up to 80% of expenses. Maximum funding per project is capped at $3 million.
• Eligibility: Businesses, research institutions, and academic institutions operating in Atlantic Canada (Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island).

Learn more about the Atlantic Innovation Fund (AIF) program.

Apply for Manufacturing Grants, Loans, and Tax Credits

The programs listed throughout this article are just some of the many grants, loans, and tax credit programs available to Canadian manufacturers. Identifying the right government funding programs is just the first step in the process. Once you have this information, your business must align relevant projects and strategic expenditures with available funding options. The next crucial phase involves crafting and submitting a detailed application that thoroughly outlines the opportunity and how the funding will support your growth objectives.

You’re not alone in the process. Our team of government funding experts can help your business optimize the entire funding application process; download our free slide deck to learn more about your options or contact our team to get started on applying for these programs.