Top Research and Development Funding Programs for 2025 

To continue growing, businesses must embrace an innovation mindset. One way for a business to advance is by funding research and development (R&D) projects. When Canadian businesses adapt and adopt new innovative strategies, they can realize competitive advantages over their domestic and international competitors. It is important to note that R&D activities are not exclusive to research-oriented companies and large businesses with extensive budgets but can also help small-to-medium-sized companies (SMEs) gain market advancement.   

Government funding programs can support Canadian businesses in their innovation goals through grants, loans, and tax credits by offsetting research and development activities. Read this blog to discover federal programs currently available that can help your business access funding for research and development projects.   

Five federal government funding programs that can help your Canadian business with eligible research and development projects are listed below. If you are reading this article in the future, a listed funding program may not be open. Stay up to date with all programs by viewing our  Research and Development Funding Directory to find all programs currently open for intake. 

Canadian Grants and Loans for Research and Development  

Scientific Research and Experimental Development (SR&ED) & Provincial Variants 

The Scientific Research and Experimental Development (SR&ED) program remains Canada’s largest R&D tax incentive. In 2025, updates from the Fall Economic Statement 2024 introduced enhancements: 

• CCPCs with under‑$10M taxable capital earn a refundable 35% ITC on the first $4.5M of qualified expenses (up from $3M previously). 
• Expenses above the limit get a 15% non‑refundable credit. Non‑CCPCs and individuals get 15% credit with partial refundability. 

Provincial incentives add between 3.5 and 30% depending on territory: 

• Quebec has replaced its provincial SR&ED rate with a new CRIC tax credit: 30% on the first $1M, and 20% above that. Claims under these rules are expected starting fiscal year-ends April 2026 and later. 
• Other provinces offer supplemental credits: Ontario 10%, Quebec now via CRIC max 30%, Manitoba 20%, BC 10%, Saskatchewan 15%, Nova Scotia 15%, Yukon 20%, and others. 

Funding requirements include: 

• Funding Amount: Up to 35% federal refundable ITC (first $4.5M) + provincial/territorial credit per your region. 
• Eligibility: Incorporated businesses, individuals, trusts, and partnerships across Canada. Provincial rules apply based on project location. 

NRC Industrial Research Assistance Program (NRC IRAP) 

NRC IRAP’s 2025 intake is imminent, offering SMEs non‑repayable contributions for technical work on research and innovation projects. Funding covers 60–80% of internal technical labour and subcontractor costs, with individual projects up to $500,000 over 24 months reported. 

• Eligibility: For‑profit SMEs with fewer than 500 employees, Canadian‑incorporated, financially stable, and focused on developing innovative technologies or processes. 
• Intake: Rolling but must submit soon in anticipation of the 2025 cohort opening. 

CanExport Innovation / Canadian International Innovation Program (CIIP) 

The CanExport Innovation and the Canadian International Innovation Program (CIIP) are two call-based programs supporting international collaborative R&D, particularly joint Canadian‑Singapore proposals. Funding covers up to 75% of eligible costs and offers up to $75,000 per technology project. Next intake opens September 1, 2025. 

• Funding Amount: Up to $75,000 in cost-sharing. 
• Eligibility: Canadian innovators working with international R&D partners; SMEs encouraged to apply. 
• Intake timeline: Applications accepted from May 1 through September 1, 2025. 

Strategic Innovation Fund (SIF) 

The Strategic Innovation Fund (SIF) supports large-scale, transformative innovation projects in sectors like cleantech, advanced manufacturing, digital industries, agri‑food, health, and clean resources. It offers both repayable and non-repayable contributions—typically at least 50% of project costs. Only projects requesting ≥ $10M contributions (i.e., project size ≥ $20M) are considered. 

• Eligibility: Open to all sectors, but high-growth, globally competitive projects are prioritized. 
• Timing: Competitive, with proposals accepted on a rolling or annual cycle. 

Sector-Specific Programs (Cleantech, Agriculture, Manufacturing, Digital Media) 

Cleantech – Investment Tax Credits 

Includes credits for: 

• Carbon Capture, Utilization & Storage (CCUS) 
• Clean Technology Investment 
• Clean Hydrogen 
• Clean Technology Manufacturing 
• Clean Electricity Investments 

These tax credits incentivize investment in clean energy, emission reductions, hydrogen production, and green manufacturing. 

Agriculture – AgriScience Program (SCAP) 

Funds pre-commercial R&D in climate resilience, economic growth, and food sector challenges. Offers up to $5M in non-repayable funding per project. Eligible to for‑profit, not‑for‑profit, and Indigenous applicants. 

Manufacturing – NGen Manufacturing Program 

Supports transformative R&D in advanced manufacturing. Non‑repayable funding covers up to 44.4% of eligible costs, for projects between $1M–$20M. All partners must be NGen members; one partner may not receive over 70% of the reimbursement. 

Digital Media – Interactive Digital Media (IDM) Fund 

Ontario-based media developers can get up to 50% support (max $50K for concept, $300K for production). Designated for Ontario-incorporated businesses. 

What’s New in the Government Funding for 2025 

Across the board, federal and provincial updates have increased refundable ITCs and broadened access for more types of taxpayers. Quebec’s shift from SR&ED to CRIC brings new rates and structures. Capacity is increasing, and competition as well. Keeping documentation tight and aligning project goals with program objectives is essential. 

Why Expert Government Funding Guidance Matters 

Strong claims administration can significantly affect program outcomes. CRA has worked on consistency across regions, but preparation remains complex.  

Canada’s innovation ecosystem is stronger than ever; but navigating federal, provincial, and sector programs is complex. Each funding source fills a distinct need, whether you’re looking for refundable tax credits, collaborative R&D support, or transformational investments in clean tech or digital media. 

If you’re starting R&D in 2025, let our Ryan Canada government funding team guide you. We help businesses align strategies with open programs, avoid pitfalls, and accelerate their applications.