Top Canadian Cleantech Grants, Loans, and Tax Credits 

The Government of Canada is dedicated to building a strong green economy by supporting Canadian businesses in the research and development (R&D) of sustainable clean technologies with a variety of cleantech funding programs. Canadians are being urged to bring forward new innovative ideas that will lead to the commercialization of important cleantech solutions across all industries. 

“Investing in Canadian cleantech is an investment in our economic sovereignty and is crucial to building a competitive, low-carbon economy. Funding will help create a future where innovation thrives, jobs are created, and global competitiveness is advanced.” 
– François-Philippe Champagne, Minister of Finance and National Revenue 

Clean technology and innovation funding can help Canada meet climate change goals, reduce the country’s environmental footprint, and continue Canada’s progress towards becoming a global leader in clean technology, so that all Canadians may benefit from a cleaner country and an advancing cleantech sector. 

Government Funding for Canadian Clean Technology 

With the need for cleantech solutions rising around the world, there are many government programs to fund projects that will position Canada as a more sustainable and environmentally friendly nation. 

To help Canada reach and exceed its goals in tackling climate change impacts, here are five government funding programs that are currently available to support Canadian businesses with the R&D of sustainable innovation projects:   

Industrial Research Assistance Program (IRAP) 

The IRAP is a funding program designed to accelerate the R&D projects of Canadian innovators. Businesses developing and implementing industrial process solutions can apply for research funding contributions through IRAP. However, large-scale technology adoption projects that lead to new, more sustainable capabilities are also considered. 

Amount: IRAP may cover up to 80% of internal technical labour and a portion of subcontractor expenses, subject to project scope and advisory approval. 

Eligibility: Employ 1–500 staff, incorporated for two or more years, and committed to internal R&D activities. 

Timeline: Projects require approval prior to spending and funding runs from April 1 to March 31 to align with the government fiscal year. 

Project Activities: Develop innovative products, processes, and services. Projects must focus on solving an internal technical challenge by adopting/developing technology and processing enhancements. 

Innovative Solutions Canada (ISC) 

ISC provides government grants and procurement contracts to stimulate technology research, development, and commercialization. This program helps Canadian startups and small to medium-sized enterprises (SMEs) overcome technology development hurdles to produce globally demanded products and services and improve government operations. 

Amount: Phase 1: Grants up to $150,000; Phase 2: Grants up to $1 million; Phase 3: Procurement contracts—no maximum. 

Eligibility: For-profit, privately held Canadian businesses with a maximum of 499 full-time employees. 

Timeline: Ongoing departmental innovation challenges each have a unique application deadline. Phase 1 projects may last up to six months, while Phase 2 projects may span up to two years. 

Project Activities: Proof of concept and prototype development projects to solve federal government departmental innovation challenges. Specific projects depend on challenges currently open for application. 

Sustainable Canadian Agricultural Partnership (SCAP) 

The SCAP is a federal effort to strengthen the competitiveness, innovation, and resilience of the agriculture, agri-food, and agri-based products industries. Canada’s federal, provincial, and territorial governments have signed a five-year SCAP agreement until 2028 with a budget of $3.5 billion to bring sustainable cleantech and energy projects to agricultural businesses. 

Amount: There are dozens of SCAP programs available, each with their own project eligibilities and funding amounts. While many programs distribute grant funding, some are a mix of grants and loans, and some are primarily loans. Currently the maximum any one program offers is $3 million per eligible project. 

Eligibility: Please see each SCAP program via our main SCAP page to assess eligibility for programs. 

Timeline: Each program has its own timeline for open applications and deadlines. SCAP programs will run until 2028 when the funding agreement will end.    

Sustainable Development Technology Canada (SDTC) 

The SDTC Tech Fund supports Canadian companies, especially cleantech leaders, to research, develop, and demonstrate new environmental technologies that address climate change and clean air, water, and soil. The average funding awarded has been between $2 million to $4 million. 

Amount: Program provides a 33% loan towards eligible expenses, paid one funding milestone in advance. 

Eligibility: Applicants must be Canadian companies planning to undertake an R&D and/or demonstration project to prove emerging and novel clean technologies and innovation. Projects must be in late-stage development/pre-commercialization (technology readiness level, TRL, 3–7). 

Timeline: Program availability and intake timelines are subject to federal updates. 

Project Activities: Projects must lead to significant environmental impacts including greenhouse gas emissions reductions and cleaner air, water, and soil. 

Strategic Innovation Fund (SIF) – Net Zero Accelerator 

The SIF’s Net Zero Accelerator Program supports rapid decarbonization projects from large carbon emitters, R&D, the commercialization scale-up of clean technologies, and the acceleration of industrial transformation to help reduce greenhouse gas emissions. 

Amount: Up to 50% in grant and/or loan funding for a minimum $10 million project budget. 

Eligibility: Businesses must be operating in Canada. Projects can come from any industry sector, but the company should have high growth potential and projects must result in significant environmental and economic benefits to Canada. 

Timeline: Continuous application intake. 

Project Activities: Projects should lead to significant environmental impacts and benefits to Canada or support the growth of Canada’s low-carbon economy. Three focus areas include:  

• Development/adoption of clean technology for all industrial sectors 
• Cleantech development in the aerospace and automobile manufacturing sectors 
• Development of a Canadian battery innovation and industrial ecosystem 

Cleantech Investment Tax Credits (ITC) and SR&ED 

To support Canada’s net-zero emissions target by 2050, the federal government has introduced several major cleantech ITC programs. Together, these programs represent approximately $93 billion in federal incentives designed to attract private investment into clean technologies. 

In addition to these refundable ITCs, businesses developing new or improved clean technologies may also qualify for the Scientific Research and Experimental Development (SR&ED) tax credit program. SR&ED provides tax incentives for eligible R&D activities, including experimental development, prototyping, and process improvement tied to cleantech innovation. When structured properly, SR&ED can complement ITCs to enhance overall project funding. 

Below is an overview of the key cleantech ITCs currently available: 

Carbon Capture, Utilization, and Storage (CCUS) Program 

The CCUS program prioritizes solutions along the CCUS value chain to enable broad deployment, low carbon hydrogen technologies across the entire value chain, and next-generation materials and products from natural gas. 

Eligible expenditures incurred from January 1, 2022 to December 31, 2030 can receive a refundable tax credit as follows: 

• Up to 60% for capturing carbon from ambient air 
• Up to 50% for capturing carbon from other sources 
• Up to 37.5% for transporting, storing, or utilizing captured carbon 

From January 1, 2031 to December 31, 2040, the tax credit is reduced by half. No tax credit is available after 2040. 

Clean Technology Investment Tax Credit Program  

This program offers a refundable tax credit of up to 30% for investments in eligible property acquired and operational between March 28, 2023 and the end of 2033. For property operational in 2034, the tax credit is reduced to 15%. No tax credit is available for property that becomes operational after 2034. 

Clean Hydrogen Investment Program  

A refundable tax credit of up to 40% is available for investments in hydrogen production projects that become operational between March 28, 2023 and the end of 2033. For projects operational in 2034, the tax credit is generally reduced by half. No tax credit is available for projects that become operational after 2034. 

Clean Technology Manufacturing Investment Program  

A refundable tax credit of 30% is available for investments in eligible property used for cleantech manufacturing and critical mineral extraction and processing, acquired and operational from 2024 to 2031. The tax credit decreases to 20% in 2032, 10% in 2033, and 5% in 2034. 

Clean Electricity Investment Tax Credit Program  

A refundable tax credit of up to 15% is available for investments in projects that generate clean electricity, store electricity without fossil fuels, or transmit electricity between provinces and territories. Construction must not have begun before March 28, 2023 (subject to transitional rules). No tax credit will be available after 2034. 

Cleantech Funding Application Support with Ryan 

Securing cleantech funding in Canada requires more than finding the right program. It takes a clear strategy, strong technical documentation, and a well-positioned business case. 

Ryan helps cleantech companies identify relevant grants, loans, and tax incentives, then manages the full application process from eligibility review through submission and reporting. We align funding with your R&D, capital investments, and growth plans to help your business secure capital and reduce project risk. 

If your business is developing or deploying clean technologies, contact us to discuss how we can support your funding strategy.