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Federal Incentives Program

Incentive Name Origin Type Value Requirements Description Link

**EDC is Export Development Canada
*BDC is the Business Development Bank of Canada

Apprenticeship Job Creation Tax Credit (AJTCT) Federal Tax Credit Offers a non-refundable tax credit equal to 10% (to a maximum of $2,000 per year) of the eligible salary and wages payable to eligible apprentices. To be eligible, an apprentice must be:
  • in a trade listed under the "Red Seal Trades" or approved by the Minister of Finance;
  • in the first two years of an apprenticeship program registered with a federal, provincial or territorial government; and,
  • working towards getting a certificate or licence in that trade.
The AJCTC is a non-refundable tax credit available to employers who hire and train apprentices in certain skilled trades. Any unused credit may be carried back three years or carried forward twenty years. More Information
Apprenticeship Training Tax Credit (ATTC) Federal Tax Credit The maximum credit available to employers is $5,000 per qualifying apprentice per taxation year. The tax credit is available to businesses that:
  • have permanent establishments in Ontario;
  • are subject to Ontario Income Tax; and,
  • incur eligible expenditures in training apprentices in designated skilled trades.
The ATTC is a refundable tax credit for corporations and unincorporated businesses employing apprentices in certain skilled trades during the first 36 months of an apprenticeship program. More Information
BDC* Operating Line of Credit Guarantee Federal Loan Guarantee No set limit. To qualify, a business must be commercially viable. It must also have an operating line of credit (with authorized limits between $400,000 and $40,000,000) that is secured by short-term assets. It may be possible to use this BDC guarantee to maintain or increase your credit limit. Designed to help businesses manage cash flow during the economic crisis. This program could help increase current lines of credit by providing guarantees to financial institutions. The guarantee is valid for a period of 12 months and can be renewed annually. No security is required from businesses directly in favour of BDC. More Information
BDC* Growth & Transition Capital Federal Loan/Equity Financing $250,000 to $10,000,000. Eligible businesses must be profitable, have a competitive advantage, strong management and solid financial controls. Please refer to link provided for further information. More Information
BDC* Term Loans Federal Loan No preset limit. Assessed on a case-by-case basis. BDC offers business term loans that can assist with important projects. More Information
BDC* Venture Capital Federal Equity Financing No preset limit. Assessed on a case-by-case basis. BDC shares its business expertise and invests businesses that develop technologies with broad application. More Information
BDC* Market Xpansion Loan Federal Loan Up to $100,000. Assessed on a case-by-case basis. BDC provides loans to businesses looking to expand into new domestic and foreign markets. More Information
Canada Small Business Financing (CSBF) Program Federal Loan Guarantee Financial institutions can finance up to 90% of the cost of asset acquisition or asset improvement. Most for-profit small and medium-sized businesses in Canada with gross revenues or projected revenues of less than $5 million are eligible to apply for loans under this program. Businesses can be corporations, sole proprietors or partnerships. The program helps businesses secure up to $500,000 from a financial institution. Loans can cover 90% of the costs to:
  • purchase or improve land or property;
  • purchase leasehold improvements or improve leased property; and,
  • purchase new equipment or improve used equipment.
More Information
Export Guarantee Program Federal Loan Guarantee No preset limit. To qualify, a company's financial institution must be willing to establish a credit arrangement and participate in the financing. Helps businesses increase their chances of securing financing from banks by providing a government guarantee on export-related activities or foreign investments. More Information
GeoConnections Program Federal Funding 50% of project funding. To obtain funding, a company must provide the use of the information contained in its database to evolve and expand the Canadian Geospatial Data Infrastructure (CGDI). Companies creating geographical location databases using digital maps or satellite images could get up to 50% of the costs of the project funded by this program. More Information
Industrial Research Assistance Program (IRAP) Federal Funding $10,000 - $250,000 per annum for each year of the project. To apply for funding, a business must be incorporated and have less than 500 employees. Provides financing for companies that want to expand their business by applying technology to market their services, products and processes. IRAP helps small and medium-sized enterprises understand technology issues and opportunities. More Information
International Science and Technology Partnerships (ISTP) Program Federal Funding Up to 50% of the costs of approved joint research projects with partner countries. To qualify, a project must show high commercial potential for Canada and partner countries China, India, Israel and Brazil. Other conditions apply and are assessed on a project-by-project basis. If a business collaborates with universities, colleges or research institutes to conduct research in the science and technology industry, this financing could cover up to 50% of the costs of approved joint research projects with partner countries. More Information
Scientific Research and Experimental Development (SR&ED) Federal Funding Up to 50% of the costs of approved joint research projects with partner countries. To qualify, a project must show high commercial potential for Canada and partner countries China, India, Israel and Brazil. Other conditions apply and are assessed on a project-by-project basis. If a business collaborates with universities, colleges or research institutes to conduct research in the science and technology industry, this financing could cover up to 50% of the costs of approved joint research projects with partner countries. More Information
Skills Link Federal Funding Up to $25,000 to cover the salary of an employee for up to 52 weeks, based on the provincial minimum wage rate. To qualify, the hired youth must be at risk of not finding work for prescribed reasons. Businesses can receive money to hire and train young Canadians between the ages of 15 and 30 (inclusive) who are registered with the Skills Link program. More Information
Sustainable Development Technology Canada (SDTC) Fund Federal Funding 33% to 50% of the costs involved in developing and testing a product. To be considered for SDTC funding, applicants should have expertise in sustainable development technology and be part of a project consortium. If a company creates technology that deals with climate change issues, clean air, clean water or soil quality, it may be eligible for financing for 33% to 50% of the costs involved in developing and testing its products. More Information
Computational Fluid Dynamics (CFD) Study Incentive Federal Funding Funding is available for up to 50% of the cost of a CFD study to a maximum of 30,000. To be eligible for an incentive an industrial company must:
  • be registered with NRCan's network of CIPEC Leaders; and,
  • have complex fluid and energy networks that are inefficient.
The CFD study incentive can help to defray the cost of hiring a technical firm to conduct a CFD study for the purpose of identifying, quantifying and explaining uneven heat transfer in process fluid that leads to inefficiencies. More Information
EDC** Project Finance Federal Funding No preset limit. Please refer to link provided for further information. Provides structuring expertise and direct financing of complex, large-scale global projects across a variety of industry sectors. This type of financing support is typically required when the project sponsor needs to build, expand or acquire a project. More Information
Process Integration (PI) Study Incentive Federal Funding Funding is available for up to 50% of the cost of a PI study, to a maximum of $50,000. To be eligible for an incentive an industrial facility must:
  • be registered with NRCan's network of CIPEC Leaders;
  • have interdependent energy and/or water networks; and,
  • have utility or treatment systems bottlenecks.
The PI study incentive can help to defray the cost of hiring a technical firm to conduct a PI study that determines the most efficient use of energy, water and raw materials. More Information
Sustainable Development Technology Canada (SDTC)-SD Tech Fund Federal Funding The $550M SD Tech Fund™ is aimed at supporting the late-stage development and pre-commercial demonstration of clean technology solutions. Provides funding for projects that address climate change, air quality, clean water and clean soil. SDTC-funded projects are active in all major Canadian economic sectors. SDTC operates two funds aimed at the development and demonstration of innovative technological solutions. The $550 million SD Tech Fund™ supports projects that address climate change, air quality, clean water, and clean soil. More Information
Sustainable Development Technology Canada (SDTC)-NextGen Biofuels Fund Federal Funding The fund supports up to 40% of eligible project costs (capped at $200M per project). Total government assistance not to exceed 60% of project costs. Eligible projects must:
  • be a first-of-kind facility that primarily produces next-generation (e.g. cellulose feedstock) renewable fuel (i.e. ethanol or biodiesel) on a large demonstration scale;
  • use feedstocks representative of Canadian biomass; and,
  • have demonstrated their technology on pilot scale.
The $500 million NextGen Biofuels Fund™ supports the establishment of first-of-kind large demonstration-scale facilities for the production of next-generation renewable fuels. More Information
Matching Investment Fund Federal Funding Up to $50,000 for consultation fees and up to $250,000 for new technologies, updating equipment, testing and product packaging. Eligible business must:
  • be a registered Canadian company;
  • have a milk processing licence (dairy product manufacturers only);
  • manufacture bakery goods, prepared foods, pharmaceutical products, beverages, cosmetics, pet food or processed meat using milk;
  • put in 50% of the costs; and,
  • create a product that increases the use of milk or dairy products.
The Canadian Dairy Commission (CDC) encourages growth and innovation in the manufacture and use of Canadian dairy products and ingredients. In support of this objective, the CDC has developed the Matching Investment Fund (MIF) which provides non-repayable contributions to Canadian registered companies or Food Technology Centres for product development on a matching investment basis. More Information
Strategic Aerospace and Defence Initiative (SADI) Federal Funding Contributions to SADI projects will equal approximately 30% of a project's total eligible costs. Canadian companies in aerospace and defence (A&D) industries that wish to conduct strategic research and development (R&D) activities, creating opportunities for Canadians to contribute to a highly skilled and knowledge-based work force, are eligible to apply for repayable contributions under the Strategic Aerospace and Defence Initiative (SADI). SADI has three main objectives:
  • to encourage strategic research and development (R&D) that will result in innovation and excellence in new products and services;
  • to enhance the competitiveness of Canadian A&D companies; and,
  • to foster collaboration between research institutes, universities, colleges and the private sector.
More Information
Canadian Youth Business Foundation (CYBF) Federal Funding CYBF provides start-up financing of up to $15,000, with flexible three- to five-year repayment schedules, and no principal payments in the first year. Qualifying entrepreneurs must:
  • be 18 - 34 years old;
  • be eligible to work in Canada;
  • be new full-time business start-up ;
  • have viable business plan; and,
  • work with a business mentor for a minimum of two years.
A national charity, CYBF is dedicated to growing the nation's economy one young entrepreneur at a time. More Information
Communications Research Centre Canada (CRC) Federal Research and Development CRC offers:
  • innovative technologies and prototype development;
  • R & D collaboration;
  • specialized engineering consulting services;
  • unique R & D facilities and testbeds; and,
  • more than 90 inventions protected by more than 200 patents.
All Canadian businesses found to be a suitable match with CRC are eligible. The CRC is the federal government's primary laboratory for R&D in advanced telecommunications technologies and systems. CRC's mission is to be the federal government's centre of excellence for communications R&D. More Information
Internship Program with Innovative Small and Medium-sized Enterprises Federal Financial Incentive Up to $30,000 to help cover a part of a graduate's salary. The firm is responsible for covering other expenses such as fringe benefits and overhead costs. To be eligible a firm must:
  • be a small or medium-sized enterprise (SME) with less than 500 employees;
  • be incorporated and for profit;
  • wish to enhance its innovation capability; and,
  • be willing to establish a trusting relationship with National Research Council of Canada's Industrial Research Assistance Program (NRC-IRAP).
The program provides financial assistance up to $30,000 to innovative Canadian SMEs towards the employment of post-secondary graduates. Internships last between six to twelve months. More Information
MITACS ACCELERATE Internship Program Federal Financial Incentive For a four-month internship, MITACS matches an organization's contribution of $7,500 through the support of federal and provincial funding partners. All companies with research and development issues, in any fields or disciplines, are eligible. Allows an intern (graduate student or post-doctoral fellow) to spend approximately half of his/her time, over a 4-, 8- or 12-month period, on site with partner organization, gaining a better understanding of the research issue in question. More Information
Work-Sharing Program (WSP) Human Resources and Social Development Canada Federal Services Support/Financial Incentive Provides income support to workers eligible for Employment Insurance benefits who are willing to work a temporary reduced work week when there is a reduction in the normal level of business activity that is beyond the control of the employer. Eligible employers must:
  • have been in year-round business in Canada for at least two years;
  • show that the need for reduced hours is unavoidable;
  • show that the work shortage is temporary and unexpected;
  • demonstrate (through a recovery plan) how the business will be maintained for the duration of the agreement and return to normal working hours as the economy strengthens;
  • not be undergoing a labour dispute; and
  • have the agreement of the union (if applicable) and employees.
WSP is designed to help employers and workers avert temporary layoffs. The program provides income support to workers eligible for Employment Insurance benefits who are willing to work a temporary reduced work week when there is a reduction in the normal level of business activity that is beyond the control of the employer.