Canadian Tax Credits and Grants for Steel and Aluminum Manufacturers

Canadian steel and aluminum manufacturers are facing renewed pressures, notably with ongoing uncertainty and increases in tariffs affecting exports and competitiveness.  

Fortunately, the Government of Canada offers numerous grants and tax incentives to help businesses in this critical sector strengthen their resilience, enhance productivity, and expand internationally.  

In this blog, we’ll explore key government funding programs tailored specifically for steel and aluminum manufacturers across Canada, emphasizing support available through initiatives such as CanExport SMEs, EDC Trade Impact, Business Scale-up and Productivity (BSP), and Strategic Innovation Fund (SIF), as well as Ontario-specific programs like the Ontario Automotive Modernization Program (O-AMP), Ontario Together Fund (OTTF), and the Southwestern and Eastern Ontario Development Funds (SWODF/EODF). 

 

Boosting Export Opportunities: CanExport SMEs and EDC Trade Ready 

The CanExport SMEs program is an excellent funding support for Canadian steel and aluminum manufacturers looking to explore new international markets. It provides funding covering up to 50% of eligible expenses, to a maximum of $50,000, assisting eligible businesses with costs related to market research, trade missions, and foreign market entry. 

The Export Development Canada (EDC) Trade Impact program complements CanExport by providing resources and support specifically designed to increase manufacturers’ international competitiveness. Through advisory services, networking opportunities, and financial solutions, EDC helps Canadian manufacturers navigate the complexities of global markets. 

Enhancing Productivity and Innovation: BSP and SIF 

Manufacturers aiming to scale operations and adopt advanced technologies should consider the Business Scale-up and Productivity (BSP) program. BSP offers repayable, interest-free loans to businesses undertaking projects focused on productivity improvement, adoption of innovative technologies, and market expansion, with potential funding ranging from $500,000 to $10 million per project. 

The Strategic Innovation Fund (SIF) also significantly benefits steel and aluminum manufacturers by supporting large-scale innovation projects. SIF funding covers up to 50% of eligible costs for projects that drive technology commercialization, enhance research and development, and promote business growth and economic benefits for Canada. Particularly, projects enhancing environmental sustainability and emissions reduction are prioritized, which is crucial for heavy industries like steel and aluminum manufacturing. 

Ontario Funding Support: OTTF, O-AMP, SWODF/EODF 

Ontario-based steel and aluminum manufacturers can tap into unique provincial funding streams. The Ontario Together Fund (OTTF) provides financial support for projects that strengthen Ontario’s domestic manufacturing capabilities, particularly projects aligned with supply chain resilience and innovation. 

The Ontario Automotive Modernization Program (O-AMP), set to reopen for intake soon, offers significant opportunities for manufacturers connected to automotive supply chains, including steel and aluminum providers. It covers up to 50% of eligible project costs, capped at $150,000, to support projects focused on technological advancements and process improvements. 

Further, the Southwestern Ontario Development Fund (SWODF) and Eastern Ontario Development Fund (EODF) offer financial contributions and loans to businesses seeking to expand operations, invest in new equipment, and create jobs within these respective regions. Eligible steel and aluminum companies can benefit from funding of up to 15% of eligible project costs, supporting growth and regional economic development. 

Navigating Government Funding Opportunities  

In summary, Canadian steel and aluminum manufacturers have numerous opportunities to secure government grants and tax incentives. From fostering export growth through CanExport SMEs and EDC Trade Ready to enhancing innovation via BSP and SIF, and accessing region-specific opportunities like OTTF, O-AMP, and SWODF/EODF, there is a range of support tailored to meet the diverse needs of this vital sector.  

By proactively exploring these resources, Canadian manufacturers can mitigate external risks, drive innovation, and secure sustainable growth in a competitive global market. 

Don’t miss out on further insights and actionable strategies. Sign up for our upcoming webinar on June 18th, where our Ryan Canada funding experts will dive deeper into specific government funding opportunities for Canadian businesses.