Funding programs
The Ontario tax credits and provincial funding programs that matter most to manufacturers and tech companies, with rates, limits and dates taken from ontario.ca.
The short answer
Ontario small businesses can use the Innovation Tax Credit (8%, refundable), the R&D Tax Credit (3.5%, non-refundable) and, for manufacturers, the 15% Ontario Made Manufacturing Investment Tax Credit. Provincial funds such as the Eastern and Southwestern Ontario Development Funds and the Ontario Together Trade Fund add project support. Confirm intake before planning.
Frequently asked
Ontario offers the Innovation Tax Credit (8%, refundable) and the R&D Tax Credit (3.5%, non-refundable) on qualified SR&ED expenditures. Both require a permanent establishment in Ontario, SR&ED carried out in Ontario and a filed T661.
Yes. Ontario describes the OITC as a refundable tax credit. It is limited by a $3 million expenditure limit, so the maximum credit is $240,000, and the limit phases out as prior-year taxable income or taxable capital rise.
It is a 15% credit for eligible buildings and equipment used for manufacturing or processing in Ontario that become available for use between May 15, 2025 and before January 1, 2030. The refundable version is for CCPCs, with a maximum of $3 million a year.
The Ontario Together Trade Fund targets tariff-affected businesses, with grants or loans of 10 to 20% of eligible costs, up to $5 million for most applicants. It requires at least 5 full-time equivalent employees and $200,000 in eligible project costs. Check the page for whether intake is open.
The Ontario R&D credits are built on the same SR&ED expenditures, so they work together. Provincial funds such as the Eastern and Southwestern Ontario Development Funds, however, cannot be stacked with other provincial programs.