Grants for Type

Clean Economy Tax Credits Are Here. Now What?

We’re happy to inform you that after nearly two years of legislative work the Federal government finally introduce four new Clean Economy Tax Credits. Tax credit applications are accepted with your corporate tax return – T2. If you already filed your return, you can file an amendment with your tax credit application.

The government reimburses between 30% and 40% of the following expenses, depending on the program. Here is what you need to know to determine if your business qualifies.

Clean Technology Tax Credit

Your business qualifies if you purchased the following after March 28, 2023

  • Equipment used to generate electricity from solar, wind and water energy
  • Stationary electricity storage equipment that does not use any fossil fuel in operation (such as batteries and pumped hydroelectric storage)
  • Active solar heating equipment, air-source heat pumps and ground-source heat pumps
  • Non-road zero-emission vehicles and related charging and refueling equipment that is used primarily for such vehicles
  • Equipment used exclusively for the purpose of generating electrical energy or heat energy (or a combination of both), solely from geothermal energy, unless it is part of a system that extracts fossil fuels for sale
  • Concentrated solar energy equipment
  • Small modular nuclear reactors

Clean Technology Manufacturing Tax Credit

Your business qualifies if after January 1, 2024 your business starts or expands:

A) Manufacturing of any of the following clean tech equipment:

  • solar energy conversion equipment (including solar thermal collectors, photovoltaic solar arrays and custom supporting structures or frames, but excluding passive solar heating equipment)
  • wind energy conversion equipment (including wind turbine towers, nacelles and rotor blades)
  • water energy conversion equipment (including hydroelectric, water current, tidal and wave energy conversion equipment)
  • geothermal energy equipment
  • equipment for a ground source heat pump system
  • air-source heat pump equipment designed for space or water heating
  • electrical energy storage equipment used for storage of renewable energy or for providing grid-scale storage or other ancillary services (including battery, compressed air and flywheel storage systems)
  • equipment used to charge, or to dispense hydrogen to zero-emission vehicles
  • equipment used for the production of hydrogen by electrolysis of water
  • equipment that is a component of the above, if such equipment is purpose-built or designed exclusively to form an integral part of that equipment
  • zero-emission vehicle used to transport goods or parts within manufacturing facility
  • integral components of the powertrain of zero-emission vehicles, including batteries or fuel cells

B) Extraction of critical minerals

C) Processing of critical minerals

D) Production of the following clean fuels:

  • Hydrogen by electrolysis of water
  • Gaseous biofuel
  • Liquid biofuel
  • Solid biofuel

E) Conversion of conventional vehicles to zero-emission vehicles.

Eligible costs include purchasing industrial buildings, leasehold improvements and purchasing manufacturing or processing equipment to support production of the above eligible clean tech goods.

Clean Hydrogen Tax Credit

Your business qualifies if after March 27, 2023 your business starts or expands production of:

  • Clean hydrogen
  • Clean ammonia

Eligible costs include purchasing industrial buildings, leasehold improvements and purchasing manufacturing or processing equipment to support production of the above clean fuels.

Carbon Capture, Utilization and Storage Tax Credit

Your business qualifies is after January 1, 2022 you:

  • Captured CO2 that would otherwise be released into the atmosphere
  • Captured CO2 directly from the ambient air
  • Transported captured carbon
  • Storing or using captured carbon

Eligible costs include purchasing property for CO2 capturing and storing, CO2 capturing and transportation equipment.

Special Provisions for Financial Difficulties – For Ontario Farmers

Amount: 100% cost-share paid directly to a qualified farm advisor.

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AI For Manufacturing Challenge

Amount: 35% of total eligible project costs reimbursed

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Alliance Advantage

Amount: from $20,000 to $1 million per year

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Regional Opportunities Investment Tax Credit

Amount: 10% refundable tax credit

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What’s in the 2024 Federal budget for you?

Few days ago the Federal government presented its 2024 fiscal year budget. We went through 430 pages to summarize what matters the most for your business. We are happy to share the following key business funding programs updates.

The following New Grants will be open as soon as the government finalizes guidelines:

  • AI Compute Access Fund to help Canadian researchers, start-ups, and scale-up businesses access the computational power they need to compete and help catalyze the development of Canadian-owned and located AI infrastructure
  • NRC IRAP AI Assist Program to help small and medium-sized businesses scale up and increase productivity by building and deploying new AI solutions. This will help companies incorporate AI into their businesses and take on research, product development, testing, and validation work for new AI-based solutions.
  • Funding to boost AI start-ups to bring new technologies to market, and accelerate AI adoption in critical sectors, such as agriculture, clean technology, health care, and manufacturing. This support will be delivered through Canada’s Regional Development Agencies.

These New Tax Credits will be available later in 2024:

  • Clean Electricity Tax Credit retroactive to March 28, 2023. This is a 15% refundable tax credit rate for eligible investments in new equipment or refurbishments related to:
  1. Low-emitting electricity generation systems using energy from wind, solar, water, geothermal, waste biomass, nuclear, or natural gas with carbon capture and storage.
  2. Stationary electricity storage systems that do not use fossil fuels in operation, such as batteries and pumped hydroelectric storage.
  3. Transmission of electricity between provinces and territories.
  • Clean Hydrogen Tax Credit retroactive to March 28, 2023
  • Clean Technology Adoption Tax Credit retroactive to March 28, 2023
  • Clean Technology Manufacturing Tax Credit retroactive to January 1, 2024
  • Carbon Capture, Utilization & Storage Tax Credit retroactive to January 1, 2022
  • Electric Vehicle Supply Chain Investment Tax Credit on the cost of buildings used in key segments of the electric vehicle supply chain, for businesses that invest in Canada across three supply chain segments: electric vehicle assembly; electric vehicle battery production; and, cathode active material production.

The funding is confirmed for the following existing programs:

These existing funding programs will be boosted:

Stay tuned to our newsletter as we will be sending updates as they become available.

Aside from the above, the budget is full of measures to support housing construction and affordability, defense, security, Indigenous funding, new tax measures and much more.

OVIN R&D Partnership Fund – Advanced Charging & Vehicle-to-Grid (V2G) Stream

Amount: co-investment of up to $1,000,000.

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Critical Industrial Technologies Initiative

Through the Critical Industrial Technologies initiative Ontario industry will converge with innovative SMEs to amplify Ontario’s rich critical technology capabilities and propel four key sectors of Ontario’s economy to the forefront of this transformation.

Four key sectors:

  • Mining
  • Advanced Manufacturing (non-auto)
  • Agri-Food
  • Construction

Critical technology areas:

  • 5G & advanced networks
  • AI
  • Blockchain
  • Robotics
  • Cybersecurity
  • Quantum

The Critical Industrial Technologies (CIT) initiative will support Ontario SMEs to develop new IP faster and at a greater scale for the benefit of the province and beyond. The Critical Industrial Technologies initiative is a Government of Ontario initiative led by OCI.

Goal of the CIT Initiative

The initiative will bring together key stakeholders at all levels to build an ecosystem that connects large companies and industry needs with SME solutions.

The initiative is committed to achieving the following 4 goals:

  • Building an Ontario critical technology ecosystem that propels Ontario’s mining, advanced manufacturing, construction, and agri-food sectors forward to be leaders in the global economy.
  • Supporting critical technology education and awareness to help SMEs understand the benefits of creating, commercializing, and adopting critical technologies.
  • Accelerating the growth of Ontario companies through the development and commercialization of Made-in-Ontario technologies and expanding critical technology talent.
  • Fueling significant advances within and between the four sectors by supporting the adoption, demonstration and integration of critical technologies.

Technology Development Sites

Technology Development Sites (TDS) are where SMEs can come to develop, test, and showcase their critical technology products and services, so they can hit the market faster.

TDSs are established by industry incumbents, vendors, and associations in their respective technology and/or sector domains. As part of the CIT program, OCI has partnered with these organizations to extend these capabilities for SMEs to utilize and integrate learnings, assets, and/or new IP into their product/service suites.

Small-and-Medium-Sized-Enterprises (SMEs) can access a Technology Development Site by:

  • Contacting the Critical Industrial Technologies team to apply for access
  • Applying to the Development and Commercialization Program for Technology Development Site Access with funding support for your project

CIT Programs

The Critical Industrial Technologies Initiative has a series of programs to drive the commercialization and adoption of critical technologies in the mining, advanced manufacturing, construction and agri- food sectors.

1. Development and Commercialization Program (DC)

Eligible SMEs can access a Technology Development Site to integrate, develop, test, and showcase their critical technologies solution with $50-200k of support from OCI.

Amount

Reimbursement of 50% of total eligible project costs, up to a maximum of $200,000, with a minimum of $50,000.

Eligibility requirements: 

  • A small- and medium- sized enterprise (SME) with fewer than 500 global full-time employees.
  • Must have registered operations (R&D, manufacturing, product management, etc.) in Ontario and a valid CRA business number.
  • Applicants who have received over $500,000 of funding from OCI administered programs in their lifetime (excluding TalentEdge) are required to obtain OCI approval before a new application for funding is initiated. Your Business Development Manager can guide you through the process.
  • Has the intent and potential to apply, exploit and/or commercialize the results of the project for the economic benefit of Ontario.
  • Has the necessary expertise and resources to put the project into effect within an appropriate time frame.
  • In good financial and reporting standing with OCI.
  • Adoption of critical technologies is part of their long-term product roadmap.

2. Technology Access Program (TA)

Eligible SMEs can access a Technology Development Site to integrate, develop, test, and showcase their critical technologies solution.

Eligibility requirements: 

  • A small- and medium- sized enterprise (SME) with fewer than 500 global full-time employees.
  • Must have registered operations (R&D, manufacturing, product management, etc.) in Ontario and a valid CRA business number.
  • Has the intent and potential to apply, exploit and/or commercialize the results of the project for the economic benefit of Ontario.
  • Has the necessary expertise and resources to put the project into effect within an appropriate time frame.
  • In good financial and reporting standing with OCI.
  • Adoption of critical technologies is part of their long-term product roadmap

3. Sector Adoption Program (SA)

Sector Adoption Program supports a consortium of partners working together to address a set challenge statement and catalyze impactful change for the whole sector. Up to $1 million available for a multi- partner consortium with a minimum of 1 SME.

Amount

Reimbursement of one-third (maximum) of total eligible project costs, up to $1,000,000.

Eligibility requirements: 

  • A small- and medium- sized enterprise (SME) with fewer than 500 global full-time employees.
  • Must have registered operations (R&D, manufacturing, product management, etc.) in Ontario and a valid CRA business number.
  • Applicants who have received over $500,000 of funding from OCI administered programs in their lifetime (excluding TalentEdge) are required to obtain OCI approval before a new application for funding is initiated. Your Business Development Manager can guide you through the process.
  • The applicant must have a validated, innovative product/service or technology that can be a solution to the SA Challenge for which they are applying.
  • The Applicant is a co-signatory to the Funding Agreement.
  • Additional Applicant eligibility requirements may vary by Challenge Statement.

4. Talent Development Program (TD)

Eligible SMEs can invest in critical technology training and support for employees.

Steam 1:
Internships for new, young talent creating the workforce of tomorrow

Stream 2: Upskilling/reskilling existing employees for the challenges of today

Amount

$10,000 per unit (fixed 4-month period) for eligible project costs, up to maximum of $20,000 (two units – fixed 8-month period).

Eligibility requirements: 

  • Undergraduate level:
    • Recent graduates from an undergraduate program from an accredited College/University (within three years of graduation).
  •  Graduate level:
    • Recent Masters graduates from an accredited College/University (within three years of graduation).
  •  The intern must be eligible to work in Ontario (anOntario resident) and have employee status at the company for the duration of the internship.
  • Consecutive internships may be held with a maximum of two units.
  • The intern may not apply with a company where there is any conflict of interest, including, but not limited to, a company where the intern or relatives have any control as a major creditor or shareholder or governing board member.
  • Interns may not apply if they are currently enrolled in a co-op program or other equivalent job placement/employment program.
  • The intern may not apply if, at the time of application submission, they are a current or past employee (within the last six months) of the company (including consultants, contract position, part-time, etc.).

5. Future Ready Program (FR)

Expert support for eligible SMEs to adopt new critical technologies through upskilling/reskilling staff.

Amount

Reimbursement of 50% of total eligible project costs, up to a maximum of $10,000.

Eligibility requirements

  • A small- and medium- sized enterprise (SME) with fewer than 500 global full-time employees.
  • Must have registered operations (R&D, manufacturing, product management, etc.) in Ontario and a valid CRA business number.
  • Applicants who have received over $500,000 of funding from OCI administered programs in their lifetime (excluding TalentEdge) are required to obtain OCI approval before a new application for funding is initiated. Your Business Development Manager can guide you through the process.
  • Companies must demonstrate a genuine need for training in one or more of the following critical technologies: 5G, AI, Robotics, Quantum Computing, Cybersecurity, and Blockchain Companies must outline a clear plan for how the training will benefit their employees and contribute to the overall growth and development of the organization.
  • Have the capability to implement and internally sustain new Critical Technologies.
  • Have a change management culture and structure that values growth and innovation, willingness to review/adopt new technologies to support scaling.
  • Has the intent and potential to apply, exploit and/or commercialize the results of the project for the economic benefit of Ontario.
  • Has the necessary expertise and resources to put the project into effect within an appropriate time frame.
  • In good financial and reporting standing with OCI.
  • Adoption of critical technologies is part of their long-term product roadmap

Sustainable Manufacturing Challenge

Amount: maximum of $5.25 million with up to 35% of total eligible costs

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Battery Industry Acceleration Call

Amount: contributions of up to $3,000,000 and $5,000,000 for R&D and demonstration projects respectively.

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32.3M provided in funding for Manufacturing Projects

As we’re always committed to keeping our customers informed about funding news and opportunities, we’d like to share with you great news – Next Generation Manufacturing Canada (NGen) announced over $32.3M in funding for 15 new advanced manufacturing projects.

These investments are a part of Canadian Supercluster Grant  Funding under  Innovation Supercluster Initiative which is open for applications. The purpose of the Superclusters is to advance the competitiveness of Canadian companies in 5 key global sectors: manufacturing, protein, artificial intelligence, digital technology and ocean technology.

Who eligible for Canadian Supercluster Grant Funding?

For-profit organizations, or not-for-profit organizations that facilitate and fund research and development, and whose funding is received primarily from private-sector organizations.

The funding program is collaborative and the application must involve at least three or four industry partners in project consortia (number varies per Supercluster).

Implement Lean Practices with Canada-Ontario Job Grant

We’d like to remind you that Canada Ontario Job Grant (COJG) program is still open for applications and provides great opportunities for Ontario businesses to invest in skill training and embrace the latest best practices and approaches for efficient operation and smooth process setup.

One of the innovative approaches coming under spotlight recently is Lean Methodology which, when integrated properly, can streamline business operations, boost their efficiency, and address lack of resources.

It’s crucial for businesses to understand how they can leverage Lean Practices to their full potential, so our partners at CTM have prepared an insightful overview about application of Lean methodology in the company management. The article also dwells on:

  • why Lean principles are essential for automation investment;
  • Critical Lean Starting Points for any company;
  • Value Stream Mapping and Automation Rollouts methods;
  • Inevitability of Industry 4.0 and its tools (cloud computing, IoT, simulation etc).

Read the article

As Lean practices is becoming an indispensable part of business management, do not miss opportunity to integrate them into your organization with Canada Ontario Job Grant and get funding of up to $10K per trainee. Get Started

Dairy Processing Modernization Initiative – Funding for equipment upgrade

Amount: 50% of eligible costs up to a maximum of $200,000 in funding.

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Alberta Petrochemicals Incentive Program

Amount: grants worth 12% of a project’s eligible capital costs.

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Alberta Agri-processing Investment Tax Credit

Amount: 12% non-refundable tax credit up to $175 million

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Low Carbon Economy Fund – Canadian Grant to Reduce GHG Emissions

Amount: 25-75% of eligible project expenditures up to $25 million in funding.

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Merry Christmas and Happy New Year 2024

As the year comes to a close, we want to express our gratitude for your continued trust and support. It’s been a pleasure serving you, and we look forward to even more exciting opportunities in the coming year.

May this festive season bring warmth, happiness and laughter to your home. Wishing you and your loved ones a Merry Christmas and a Happy New Year filled with joy, prosperity, and success.

Thank you for being a part of our journey. Here’s to a fantastic 2024!

merry christmas and happy new year 2024

Tourism Growth Program – Tourism Industry Loan for Southern Ontario

Amount: up to a maximum of $250,000 per project.

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What is for you in the Fall Economic Statements?

This month, both Federal and Provincial governments provided budget updates in the Fall Economic Statements. Although the focus was on combatting inflation, infrastructure and housing issues, I found a few updates on the government funding for businesses.

Carbon Capture, Utilization, and Storage Tax Credit and Clean Technology Tax Credit will be legislated by spring 2024 and most likely will be open for application in the summer. Other cleantech sector tax credits will be introduced later in 2024.

Canada Growth Fund started its operations and has already announced its first investment. We will research eligibility and application procedures and will share them with you as we get more information.

Ontario Made Manufacturing Investment Tax Credit, a 10% grant on purchasing manufacturing equipment, is still in the works. The Canada Revenue Agency is working on an application form on behalf of the Ontario government. Stay tuned.

To learn more about the Fall Economic Statements, visit the following pages:

Costs Going Up? Introducing Cost Reduction Service

Over the past 11 years in the grant writing business, we analyzed hundreds of financial statements and built hundreds of compelling financial forecasts for our clients. Our analysts regularly perform financial metrics calculations and identify cost reduction opportunities.

We are pleased to introduce our Cost Reduction & Recovery Service.

  • Does your business suffer losses?
  • Do you feel that your business is losing more money than expected?
  • Do expenses go out of control?

If so, the service may be right for your business.

Our Approach to Cost Reduction & Recovery

  • Analyze your financial statements and the interim statements for the past 3 fiscal years.
  • Calculate key financial metrics.
  • Compare the metrics to the industry benchmarks.
  • Identify gaps, improvement, expense reduction and recovery opportunities.
  • Develop an individual Plan to reduce and recover business expenses.
  • Implement the Plan (if applicable).

Learn more about the Cost Reduction & Recovery solution on our website.

Working in forest sector? Apply for renewed IFIT grant

We’d like to inform you that Investments in Forest Industry Transformation (IFIT) Program has been renewed. The IFIT program helps improve the environmental performance of the forest sector by supporting demonstration and adoption projects that contribute to the decarbonization of industrial processes, as well as the efficient use of resources that generates more value from the same amount of wood.

Eligibility Criteria:

IFIT funding is open to the following applicants:

  1. Legal entities validly incorporated or registered in Canada including:
    • for-profit and not-for-profit organizations such as companies, industry associations, and research associations
    • Indigenous organizations and groups
  2. Provincial, territorial, regional, and municipal governments and their departments and agencies where applicable

Deadline

Applications can be submitted within our 4 application windows, detailed below:

  • Window 1: Apply by September 30, 2023 for a decision by February 29, 2024.
  • Window 2: Apply by December 31, 2023 for a decision by May 31, 2024.
  • Window 3: Apply by March 31, 2024 for a decision by August 31, 2024.
  • Window 4: Apply by June 30, 2024 for a decision by November 30, 2024.

Need help with this or other government funding programs but don’t know where to start or how to prepare an application?

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The Protection and Risk Resilience: Plant Health Designated Program

Deadline: the designated Program will end on March 31, 2028.

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Grow Ontario Market Initiative

Amount: up to $125,000 in funding per Project

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2023 Federal Budget: New Grant Opportunities

New 2023 Federal budget is heavily focused on clean and green technology adoption by introducing three new tax credits:

  • Clean Technology Manufacturing Investment Tax Credit – 30% of the cost of new machinery and equipment used to manufacture or process key clean technologies, and extract, process, or recycle key critical minerals
  • Clean Technology Investment Tax Credit
  • Carbon Capture, Utilization, and Storage Investment Tax Credit

More information about these new programs will be available in the coming weeks or months.

In addition, the following new grants were announced:

  • Clean Fuels Fund to encourage investment in the production of clean fuels, including clean hydrogen and biofuels;
  • Canada Growth Fund to incentivize private sector investment into projects and companies that will grow Canada’s clean economy at speed and scale;
  • Net Zero Accelerator to make large-scale investments in clean technologies;
  • Low Carbon Economy Fund to support the installation of emission-reducing technologies for provinces and territories, businesses, Indigenous communities, and other organizations;
  • Canada Innovation Corporation, which will support Canadian businesses in investing in research and development.

In the meantime, the funding for the following Federal incentive programs was renewed:

 

Need help with this or other government funding programs but don’t know where to start or how to prepare an application?

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CME Technology Investment Program – Southern Ontario Grant for Equipment

Amount: 50% of the project cost up to $50,000.

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Digitalization Competence Centre (DCC) – Ontario Grant for Implementing Technology

Amount: provides 50% of the project cost up to $150,000.

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Life Sciences Innovation Fund (LSIF)

Amount: up to $500,000 of eligible costs

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Smart Factory Accelerator Program

Amount: $25,000 in hardware, sensors, training and workshops.

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Greenhouse Technology Network Project

Amount: up to $100,000 in project-based matching funding.

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FoodShift Program

Amount: up to $50,000 in project-based matching funding.

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