Top Canadian Manufacturing Grants and Tax Credits for 2026 

Canadian manufacturers are entering 2026 with no shortage of pressure or opportunity. Rising input costs, supply chain realignment, digital transformation, and the push toward clean and advanced manufacturing are reshaping how facilities invest and grow. The good news is that governments across Canada continue to prioritize manufacturing as a cornerstone of economic competitiveness. 

Federal and provincial governments offer a wide range of manufacturing grants, loans, and tax credits designed to support innovation, productivity, workforce development, export growth, and capital investment. Manufacturing remains one of the most well-funded sectors in Canada, with more programs available than almost any other industry. 

When leveraged strategically, government funding can offset significant project costs to reduce risk and accelerate timelines. Below is an updated overview of the top Canadian manufacturing grants and tax credits for 2026, including federal programs and regionally targeted incentives. 

 

Why Manufacturing Funding Matters More in 2026 

Manufacturing funding programs are not one-size-fits-all. They are designed to support specific business activities that align with public policy priorities, such as advanced manufacturing, clean technology, export expansion, automation, and skills development. 

As Innovation, Science and Economic Development Canada notes: 

“Manufacturing plays a critical role in Canada’s economy, supporting innovation, productivity growth, and high-quality jobs across the country.” 
— Innovation, Science and Economic Development Canada (ISED) 

For manufacturers, this means funding opportunities exist across the full project lifecycle, from early-stage research and development (R&D) to commercialization, facility expansion, and workforce training. 

Create a Strategic Funding Plan to Maximize Growth Opportunities 

Before applying for individual grants or tax credits, manufacturers benefit most from building a structured government funding plan. A funding plan connects upcoming investments to the right mix of grants, loans, and tax incentives over a 12-to-24-month horizon. 

Government funding plans allow manufacturers to: 

• Offset costs across multiple projects 

• Sequence applications based on intake timing 

• Combine federal and provincial incentives 

• Reduce reliance on a single funding source 

A well-built plan typically starts by identifying major investments, such as automation projects, new equipment purchases, digital systems, export initiatives, or R&D activities. From there, eligible funding programs can be aligned to each initiative, whether independently or with support from government funding specialists. 

Top Federal Canadian Manufacturing Grants and Tax Credits  

Funding Snapshot: Scientific Research and Experimental Development (SR&ED) 

The SR&ED program is Canada’s largest tax incentive for R&D, supporting experimental development and technological advancement. 

Objectives 

• Encourage technological innovation 

• Support experimental development and process improvement 

Funding Amount 

• Up to 69% of eligible labour and overhead costs 

• Up to 36% of contractor costs 

• Up to 45% of material costs 

Eligible Applicants 

• Canadian-controlled private corporations 

• Public corporations and foreign-owned firms operating in Canada 

Eligible Projects 

• Experimental development 

• Process improvements 

• Technology advancement and prototyping 

Timeline 

• Ongoing program with annual claim cycles 

SR&ED remains a cornerstone funding program for manufacturers investing in process optimization, automation, or new product development. 

Funding Snapshot: Industrial Research Assistance Program (IRAP) 

IRAP supports innovation-driven projects that address technical challenges and improve productivity. 

Objectives 

• Support industrial innovation 

• Accelerate commercialization 

Funding Amount 

• Up to 80% of direct labour costs 

• Up to 50% of subcontractor costs 

• Non-repayable funding, up to $10 million per project 

Eligible Applicants 

• Incorporated Canadian small and medium-sized enterprises (SMEs) 

• 1 to 500 employees 

• Internal technical expertise required 

Eligible Projects 

• Product and process development 

• Technology implementation 

• Productivity improvements 

Timeline 

• Intake is periodic and advisor-led 

Funding Snapshot: CanExport SMEs 

CanExport SMEs supports export market development and international expansion. 

Objectives 

• Increase export readiness 

• Support international market entry 

Funding Amount 

• Up to 50% of eligible costs 

• Maximum of $50,000 per project 

• Up to two applications per fiscal year 

Eligible Applicants 

• For-profit Canadian businesses 

• Revenues between $100,000 and $100 million 

• 1 to 500 employees 

Eligible Projects 

• Trade shows and missions 

• Market research 

• Marketing and packaging adaptation 

Timeline 

• Intake is periodic 

Funding Snapshot: Canada Job Grant (CJG) 

The CJG helps manufacturers offset third-party training costs. 

Objectives 

• Address skills gaps 

• Support workforce upskilling 

Funding Amount 

• 50 to 100% of training costs 

• Up to $5,000 to $15,000 per trainee (varies by province) 

Eligible Applicants 

• Canadian SMEs 

• Training must be delivered by third-party providers 

Eligible Projects 

• Technical skills training 

• Equipment and software training 

• Leadership and supervisory development 

Timeline 

• Ongoing, provincially administered 

Funding Snapshot: Strategic Response Fund (SRF) 

The SRF supports large-scale innovation and expansion projects. 

Objectives 

• Drive industrial innovation 

• Strengthen global competitiveness 

Funding Amount 

• Minimum $10 million project size 

• Up to 50% of eligible costs 

• Combination of repayable and non-repayable support 

Eligible Applicants 

• Incorporated Canadian businesses 

• High-growth and innovation-driven firms 

Eligible Projects 

• Facility expansion 

• Advanced manufacturing 

• R&D and commercialization 

Timeline 

• Intake is periodic and competitive 

Clean Technology Manufacturing Investment Tax Credit (CTM-ITC) 

As Canada moves toward a net-zero economy, the CTM-ITC has emerged as a critical tool for manufacturers. This refundable tax credit supports the cost of investments in new machinery and equipment used to manufacture or process key clean technologies. 

For 2026, this credit remains a vital incentive for businesses pivoting toward green manufacturing. It covers equipment used for the extraction and processing of critical minerals, as well as the manufacturing of zero-emission vehicles, batteries, and renewable energy systems. 

Top Manufacturing Grants in Ontario 

Funding Snapshot: Ontario Automotive Modernization Program (O-AMP) 

The O-AMP supports productivity improvements in Ontario’s automotive supply chain. 

Funding Amount 

• Up to 50% of eligible costs 

• Maximum $100,000 per project 

Eligible Applicants 

• Ontario automotive suppliers 

• Fewer than 500 employees 

• At least 50% automotive revenue 

Timeline 

• Intake is periodic 

Advanced Manufacturing and Innovation Competitiveness (AMIC) 

The AMIC program is a cornerstone of Ontario’s strategy to support advanced manufacturing. It provides financial support to SMEs across the province to invest in capital equipment, technology adoption, and skills development. The goal is to help companies scale up, improve competitiveness, and create jobs. 

Funding Amount 

• Loan of up to 15% of eligible project costs, to a maximum of $5 million. A portion of the loan may be forgivable if targets are met. 

Eligible Applicants 

• SMEs with at least three years of operations and 10 or more employees, primarily in the advanced manufacturing sector. 

Eligible Projects 

• Adoption of advanced technology, facility expansion, or new product mandates. 

Timeline:  

• Intake periods are typically announced annually; businesses should prepare projects in advance of intake openings. 

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

The BSP program supports technology adoption and scale-up. 

Funding Amount 

• Up to 35% of eligible costs 

• Maximum $10 million 

• Repayable, no-interest loan 

Timeline 

• Intake is periodic 

Western Canada Manufacturing Funding 

Funding Snapshot: Western Business Scale-up and Productivity (BSP) Program 

 This program supports growth-oriented manufacturers in Western Canada. 

Funding Amount 

• Up to 50% of eligible costs 

• Maximum $5 million per project 

Timeline 

• Intake is periodic 

Atlantic Canada Manufacturing Funding 

Funding Snapshot: Atlantic Innovation Fund (AIF) 

The AIF supports innovation and commercialization in Atlantic Canada. 

Funding Amount 

• Up to 75% of costs for businesses 

• Maximum $3 million per project 

Timeline 

• Intake is periodic 

Apply for Canadian Manufacturing Grants, Loans, and Tax Credits 

Identifying government funding programs is only the first step. Manufacturers must align projects, manage timelines, and submit detailed applications that clearly demonstrate economic and innovation impact. 

A strategic approach improves approval odds and maximizes total funding secured across multiple initiatives. 

Get Started with the Ryan Government Funding Team 

Government funding can play a meaningful role in supporting manufacturing growth, but navigating eligibility rules, stacking opportunities, and intake cycles requires experience. 

The Ryan Government Funding team works with manufacturers across the country to identify eligible projects, build funding roadmaps, and manage applications from start to finish. 

If you’re planning investments in automation, expansion, R&D, or workforce development, now is the time to explore your government funding options.