Canada Business Tax Credits Directory (Federal & Provincial)
Unlock the full potential of your business with our comprehensive guide to business tax credits and incentives in Canada. This directory covers major federal programs and every province and territory, helping Canadian companies of all sizes maximize savings, fuel innovation, and support growth.
Canada offers a robust array of tax credits, grants, and incentives to promote business investment, research and development (R&D), green technology, hiring, and regional economic growth. These programs are available at both the federal and provincial/territorial levels. Knowing which credits you qualify for—and how to apply—can make a significant difference to your bottom line.
Federal Business Tax Credits & Incentives
- SR&ED (Scientific Research & Experimental Development) Tax Credit: The flagship federal credit for R&D performers in Canada. Provides refundable and non-refundable credits on eligible R&D expenditures. Learn more
- Federal Film & Video Production Tax Credits (CPTC, PSTC): For Canadian and foreign film/TV productions. Details
- Clean Technology Investment Tax Credit: A new refundable credit for investments in green energy, clean manufacturing, and net-zero technologies. See green tech credits
- Hiring & Apprenticeship Credits: Including the Apprenticeship Job Creation Tax Credit and Canada Job Grant. More info
- Atlantic Investment Tax Credit: For investment in certain Atlantic and Gaspé regions. View Atlantic credits
- Other Federal Industry Credits: E.g., agri-food, digital media, manufacturing. Full list
Provincial & Territorial Business Tax Credits Directory
Each province and territory offers its own suite of business tax credits, often complementing federal programs or targeting local priorities (innovation, job creation, green tech, regional growth, etc.). Explore by region:
Sample Programs by Region
- Ontario: Ontario Innovation Tax Credit, Ontario Film & Television Tax Credit, Regional Opportunities Investment Tax Credit, and more.
- Quebec: Quebec R&D Tax Credit, e-business credit, green/clean tech incentives, multimedia credit, hiring/training grants, and more.
- British Columbia: BC Interactive Digital Media Tax Credit, Clean Tech Credits, Scientific Research Tax Credit, and others.
- Atlantic Provinces: Regional innovation and investment credits, film/media, and targeted hiring incentives.
- Prairies & Territories: Manufacturing investment credits, innovation funds, and support for key sectors.
Eligibility, Application, and Claim Tips
- Eligibility: Most credits target Canadian-controlled private corporations (CCPCs), but some are open to partnerships, proprietorships, and non-profits. Common requirements include having a permanent establishment in the region and incurring eligible expenditures (R&D, capital, payroll, etc.).
- Application Process: Many credits are claimed through the corporate tax return (T2 and provincial forms), but some require pre-approval, registration, or separate applications (especially grants or refundable incentives).
- Documentation: Maintain robust records—payroll, contracts, R&D documentation, invoices, and supporting calculations. Many programs are subject to audit.
- Calculation: Credits are usually a percentage of eligible expenses—examples: 15% of R&D expenditures (federal SR&ED), 5-17% for green tech investments, 8-20% for regional investment credits.
- Refundability: Some credits are fully refundable (paid as cash if no tax owing), others are non-refundable (reduce tax payable only), and some are partially refundable.
Stacking Strategies: Federal & Provincial Credits
Many Canadian businesses can stack federal and provincial tax credits for the same expenditure, particularly in R&D, green technology, and innovation. For example, an Ontario manufacturer conducting eligible R&D could claim both the SR&ED credit and the Ontario Innovation Tax Credit. However, most provinces require you to reduce your provincial claim by any federal assistance received, and vice versa. Consult a tax professional or detailed program guides for optimal stacking strategies and to avoid double-counting.
Frequently Asked Questions (FAQ)
- Can I combine grants and tax credits? Yes, but be aware that most grants and non-repayable assistance must be deducted from eligible expenditures when calculating your tax credit claims.
- Are these credits only for corporations? Most are for corporations, especially CCPCs, but some are available to partnerships, proprietorships, or non-profits.
- How do I avoid an audit? Maintain complete and clear documentation. Work with a qualified tax advisor for complex or high-value claims.
- Where can I get more help? See our detailed guides for each program and contact your regional business development agency or a specialist tax advisor.