Business Tax Credits in Canada: Reduce Costs and Boost Cash Flow Through Government Incentives
Looking to lower your business taxes through government incentives? This article explains business tax credits in Canada: how they work for Canadian businesses, what types are available at the federal and provincial levels, and how to claim them.
Whether you’re investing in innovation, hiring apprentices, or producing digital content, this guide will help you understand and access tax credits that can improve your cash flow and reduce your tax burden.
✅ What Is a Business Tax Credit?
A business tax credit is a financial incentive that reduces the amount of income tax your company owes. Tax credits are offered by both federal and provincial governments and are typically tied to specific business activities such as research and development (R&D), digital media production, hiring, or investing in clean technologies.
There are two main types of tax credits:
- Non-refundable tax credits – These reduce the taxes you owe but do not result in a refund if your tax liability is zero.
- Refundable tax credits – These provide a cash refund even if your business does not owe taxes. These are especially helpful for startups or early-stage companies.
Unlike grants, tax credits are claimed when you file your corporate tax return and are often based on actual expenses your business has already incurred.
✅ Common Types of Business Tax Credits in Canada
Canadian businesses may be eligible for a range of tax credits. Here are the most common categories:
◾ R&D Tax Credits
- The Scientific Research and Experimental Development (SR&ED) program is the largest federal tax credit for businesses conducting R&D in Canada.
- It offers refundable and non-refundable credits for wages, materials, and subcontractor costs related to experimental development or applied research.
◾ Digital Media & Tech Tax Credits
- Several provinces (including Ontario, Quebec, BC, and Nova Scotia) offer credits for the creation of digital products such as video games, e-learning platforms, and interactive media.
- These typically cover labour costs and require pre-approval or certification.
◾ Film, TV & Media Production Tax Credits
- Federal and provincial programs support eligible production costs for film, television, and animation.
- Examples include the Canadian Film or Video Production Tax Credit (CPTC) and provincial equivalents in Ontario, Quebec, and British Columbia.
◾ Green & Clean Tech Credits
- Some provinces offer tax credits for investments in clean technology, energy efficiency upgrades, or low-emission manufacturing.
- These are often part of broader climate action strategies and may overlap with capital investment incentives.
◾ Training & Apprenticeship Tax Credits
- Federal and provincial governments provide tax credits to employers who hire apprentices or provide structured, certified training.
- Examples include the Apprenticeship Job Creation Tax Credit (federal) and provincial versions in Ontario, Manitoba, and other provinces.
◾ Investment or Capital Credits
- Certain provinces offer tax credits for purchasing new equipment, expanding facilities, or investing in specific regions (e.g. Northern Ontario).
- These often support manufacturing, processing, or resource-based industries.
✅ How Business Tax Credits Work
While each credit has its own rules, most operate on the same general principles:
- Credits are claimed on your tax return, often through specific schedules or supplementary forms (e.g. T661 for SR&ED).
- You must track eligible expenses, which can include salaries, contractor costs, equipment, or training investments.
- Some credits — especially in digital media or film — require pre-certification or a review process before you can claim them.
- Supporting documentation is critical. You may need to provide payroll records, project summaries, or invoices to verify your claim.
Tax credits can significantly reduce your payable corporate income tax, and in the case of refundable credits, may generate a cash refund even if your company is not profitable.
✅ Federal vs. Provincial Tax Credits
Both federal and provincial governments offer tax credit programs, but they vary in scope, eligibility, and claim process:
◾ Federal Tax Credits
Available to businesses across Canada. These include:
- SR&ED (R&D credits)
- Apprenticeship Job Creation Tax Credit
- Film and digital media tax credits (administered through CRA and heritage departments)
◾ Provincial Tax Credits
Each province offers its own mix of credits aligned with its economic priorities. For example:
- Ontario: Strong support for digital media, apprenticeships, and manufacturing
- Quebec: Leading province for R&D, video game development, and AI-related credits
- British Columbia: Incentives for clean tech, film production, and e-business
- Nova Scotia / PEI / Manitoba: Offer regionally focused credits for hiring, training, and cultural production
Some provincial tax credits can be stacked with federal programs, while others cannot. Always check compatibility when planning your claim.
✅ How to Claim a Business Tax Credit
To access tax credits, your business must:
- Identify eligible activities and expenses – Keep detailed records and separate accounting for qualifying costs
- Confirm program requirements – Some credits require advance registration or pre-approval
- Complete and submit the proper forms when filing your T2 Corporate Tax Return, including:
- T661 (SR&ED)
- Provincial claim forms (e.g. ON479 for Ontario tax credits)
- Schedules 31, 564, or others, depending on the credit
- T661 (SR&ED)
- Work with a tax advisor – Many credits are technical, and a qualified accountant can help ensure compliance and maximize your claim
✅ Alternatives or Complements to Tax Credits
If your business doesn’t qualify for a tax credit — or if you’re seeking additional funding — consider these complementary options:
◾ Grants
Upfront, non-repayable funding to support hiring, R&D, export development, or business expansion.
◾ Subsidies
Reimbursement for specific costs such as wages or training — often easier to access than tax credits for early-stage businesses.
◾ Loans
Government-backed loans with flexible terms, lower interest rates, and options tailored to small business growth.
◾ Equity Investment Programs
For innovation-driven companies, public and private venture capital may be available — particularly in tech, biotech, and clean energy.
✅ Business Tax Credits in Canada: Current Federal & Provincial Tax Credits Available
In the following sections you’ll find business subsidy programs that are currently offered by the Canadian federal government, as well as various provincial governments:
Federal Business Tax Credits Currently Available:
$6,000.00
Tax Credit
Description:
The Training Tax Credit provides refundable income tax credits for employers who employ apprentices enrolled in apprenticeship programs administered through the SkilledTradesBC.
An Enhanced Tax Credit is available to employers of First Nations individuals and persons with disabilities that are entitled to a basic or completion tax credit, or that have received the federal apprenticeship job creation tax credit for the year.
$3,000.00
Tax Credit
Description:
The Training Tax Credit provides refundable income tax credits for employers who employ apprentices enrolled in apprenticeship programs administered through the SkilledTradesBC.
B.C.’s Completion Tax Credit is available for both Red Seal and non-Red Seal apprenticeship programs. The completion credit requires the apprentice to complete level 3 or 4 of a program.
$4,000.00
Tax Credit
Description:
The Training Tax Credit provides refundable income tax credits for employers who employ apprentices enrolled in apprenticeship programs administered through the SkilledTradesBC.
Throught the Basic Tax credit, employers who hire apprentices registered in non-Red Seal programs are eligible to claim 20% of wages up to a maximum of $4,000 per year for each apprentice, for the first 24 months of registration.
No fixed amount
Tax credit
Description:
On March 21, 2025, the Government of Canada announced actions to support workers and businesses in response to tariffs.
To support businesses, the Canada Revenue Agency (CRA) will:
a. Defer GST/HST remittances and corporate income tax payments from April 2 to June 30, 2025
b. Waive interest on GST/HST and T2 instalment and arrears payments that are required to be paid between April 2 and June 30, 2025
c. Provide interest relief on existing GST/HST and T2 balances between April 2 and June 30, 2025
You do not need to provide proof of hardship from or impact of tariffs. The CRA will automatically grant relief on your T2 and GST/HST accounts during the relief period.
Note: Interest will resume starting July 1, 2025.
Investment tax credit at a basic rate of 15%; some corporations may claim an ITC at the enhanced rate of 35%; some businesses may also earn a refundable ITC; plus a deduction of allowable SR&ED expenditures against income
Tax Credit
Description:
If your business is engaged in scientific research and experimental development (SR&ED), you may be able to earn tax incentives that reduce your income tax payable.
Corporations, individuals, trusts, and partnerships that conduct SR&ED work in Canada may be able to:
1. Claim a deduction against income
2. Earn an investment tax credit (ITC) that they can apply against their income tax payable
Where the breeding herd has been reduced by at least 15%, but less than 30%, 30% of income from net sales can be deferred; where reduced by 30% or more, 90% of income from net sales can be deferred
Tax Credit
Description:
The Livestock Tax Deferral provision under the Income Tax Act allows farmers that carry on a farming business in a prescribed area who sell all or part of their breeding herd due to drought, excess moisture or flooding to defer a portion of sale proceeds to the following year when filing their taxes.
Non-refundable ITC of 15% of the SR&ED qualified expenditure pool; CCPCs (and, for tax years beginning on or after December 16, 2024, eligible Canadian public corporations) may earn an enhanced 35% ITC on qualified SR&ED expenditures up to an expenditure limit of $3 million ($6 million for tax years beginning on or after December 16, 2024), refundable if it cannot be used to offset Part I tax; expenditures above the limit earn 15% (40% refundable for qualifying corporations); 40% partial refundability on capital expenditures
Tax Credit
Description:
Corporations can earn an investment tax credit (ITC) on qualified expenditures and on property used in scientific research and experimental development (SR&ED), reported on Schedule 31, Investment Tax Credit – Corporations.
The ITC rate for qualified property is 10% of the cost of acquiring qualified property (capital cost first reduced by any government or non-government assistance received or receivable)
Tax Credit
Description:
A corporation can claim an investment tax credit (ITC) to reduce Part I tax that it would otherwise have to pay, or in some cases this credit may be fully or partially refundable.
You can earn ITCs on qualified property acquired mainly for use in designated activities in the Atlantic region.
no fixed amount
Tax Credit
Description:
CCUS is a suite of technologies that capture carbon dioxide (CO2) emissions from fuel combustion, industrial processes, or directly from the air, to either store the CO2 or use it in industry. Businesses that incur qualified CCUS expenditures after 2021 and before 2041 can claim the new refundable CCUS ITC.
100% first-year deduction for eligible manufacturing and processing machinery and equipment acquired after 2024 and available for use before 2030; 75% in 2030-2031; 55% in 2032-2033
Tax Credit
Description:
Full expensing for manufacturers and processors, which allows businesses to immediately write off the full cost of machinery and equipment used for the manufacturing or processing of goods (Class 53).
100% first-year deduction for eligible Class 43.1 clean energy equipment acquired after 2024 and available for use before 2030; 75% in 2030-2031; 55% in 2032-2033
Tax Credit
Description:
Full expensing for clean energy investments, which allows businesses to immediately write off the full cost of specified clean energy equipment (Classes 43.1 and 43.2).
Refundable tax credit of 16% of the qualified Canadian labour expenditure incurred for the accredited production; no cap on the amount of PSTC per production
Tax Credit
Description:
The Film or Video Production Services Tax Credit (PSTC) provides eligible production corporations with a tax credit at a rate of 16 per cent of the qualified Canadian labour expenditures incurred in respect of an accredited production.
Co-administered by the Canadian Audio-Visual Certification Office and the Canada Revenue Agency, the PSTC is designed to enhance Canada as a location of choice for film and video productions employing Canadians, as well as to strengthen the industry and secure investment.
no fixed amount
Tax Credit
Description:
A corporation can claim refundable tax credit that is equal to 30% of the capital cost of eligible clean technology property that is acquired and that becomes available for use after March 27, 2023, and before 2034. The rate will be reduced to 15% in 2034 and nil after 2034.
No fixed amount
Tax Credit
Description:
The Clean Technology ITC is a refundable tax credit for capital invested in the adoption and operation of new clean technology property in Canada from March 28, 2023, to December 31, 2034.
Refundable tax credit of 35% (January 1, 2023 to December 31, 2026; 25% after that period) of qualifying labour expenditure, capped at $85,000 per eligible newsroom employee per year
Tax Credit
Description:
The Canadian journalism labour tax credit is a refundable tax credit that is available to an organization that is a corporation, a trust, or a partnership.
The credit is calculated by applying a rate of 25% to the total qualifying labour expenditure incurred for a period in the tax year beginning on or after January 1, 2019, in respect of each eligible newsroom employee of a qualifying journalism organization (QJO), less any amount received from the Aid to Publishers component of the Canada Periodical Fund in the year.
Fully refundable tax credit at 25% of the qualified labour expenditure (labour capped at 60% of total production cost net of assistance), so a maximum of 15% of the total cost of production net of assistance, per production
Tax Credit
Description:
The Canadian Film or Video Production Tax Credit (CPTC) provides producers of eligible Canadian film or video productions with a fully refundable tax credit, available at a rate of 25 per cent of the qualified labour expenditure.
Jointly administered by the Canadian Audio-Visual Certification Office (CAVCO) and the Canada Revenue Agency, the CPTC encourages the creation of Canadian film and television programming and the development of an active domestic independent production sector.
Non-refundable investment tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices, to a maximum credit of $2,000 per year for each eligible apprentice
Tax Credit
Description:
The apprenticeship job creation tax credit (AJCTC) is a non-refundable investment tax credit (ITC) equal to 10% of the eligible salaries and wages payable to eligible apprentices in respect of employment after May 1, 2006. The maximum credit an employer can claim is $2,000 per year for each eligible apprentice. If your business hires an eligible apprentice, you qualify to claim the credit.
no fixed amount
Tax Credit
Description:
A a corporation can claim an air quality improvement tax credit related to the purchase or upgrade of mechanical heating, ventilating, and air conditioning (HVAC) systems. It also applies to the purchase of standalone devices designed to filter air using high efficiency particulate air filters (HEPA).
no fixed amount
Tax Credit
Description:
Accelerated investment incentive, which provides an enhanced first-year allowance for certain eligible property that is subject to the capital cost allowance (CCA) rules.
Alberta Business Tax Credits Currently Available:
Refundable Alberta tax credit at either a 22% or 30% rate on eligible production costs
Tax Credit
Description:
The Film and Television Tax Credit (FTTC) offers a refundable Alberta tax credit on eligible production costs to corporations that produce films, television series, and other eligible screen-based productions in the province.
Applicants may apply for either a 22% or 30% tax credit rate.
5-year exemption of 50% of the municipal property taxes that result from increased assessed property value
Tax Credit
Description:
The Brownfield Tax Incentive Program encourages the re-development of brownfield sites. Eligible developments could include solar or wind farms.
Developments can receive a 5-year exemption of 50% of the municipal property taxes that result from increased assessed property value. The value increase is due to the construction of a new facility on the property.
12% non-refundable, non-transferable tax credit on investments of $10 million or more, up to $175 million in tax credits for each project, claimable over 10 years
Tax Credit
Description:
The Agri-Processing Investment Tax Credit (APITC) program provides a 12% non-refundable, non-transferable tax credit when businesses invest $10 million or more in a project to build or expand a value-added agri-processing facility in Alberta. The program is open to any food manufacturers and bioprocessors that add value to commodities like grains or meat, or turn agricultural by-products into new consumer or industrial goods.
B.C. Business Tax Credits Currently Available:
Basic tax credit: 20% of salary and wages (up to $5,250) paid to an apprentice in the tax year during the first 24 months of an eligible program; completion tax credit: 20% of salary and wages (up to $5,250) paid in the 12 months before the apprentice completes level 3 or 4; enhanced by 50% (up to $2,625) for apprentices who are eligible First Nations individuals or persons with disabilities; refundable
Tax Credit
Description:
The shipbuilding and ship repair industry tax credit is a tax credit for eligible employers that employ apprentices in the B.C. shipbuilding and ship repair industry.
An eligible employer is an employer whose principal business is constructing, repairing or converting ships.
Refundable tax credit of 10% of the lesser of the corporation’s SR&ED qualified BC expenditure or the expenditure limit ($6 million); non-refundable credit of 10% of SR&ED qualified BC expenditure less the refundable credit and any amount renounced
Tax Credit
Description:
The B.C. scientific research and experimental development (SR&ED) tax credit is for qualifying corporations that incur BC qualified expenditures.
Qualifying corporations that are Canadian-controlled private corporations (CCPCs) may claim a refundable tax credit.
No fixed amount
Tax Credit
Description:
The qualifying environmental trust tax credit is for eligible corporations that are beneficiaries of qualifying environmental trusts located in B.C.
Reduces the amount of school tax you pay by 50%
Tax Credit
Description:
The provincial farm land tax credit reduces the amount of school tax you pay by 50%. If you qualify, you will automatically receive the credit on your property tax notice.
1/3 of your eligible capital expenditures from the development of the new mine or expansion project
Tax Credit
Description:
The new mine allowance encourages the development of new mines and eligible expansion projects. You can claim this allowance if:
The new mine allowance is calculated as 1/3 of your eligible capital expenditures from the development of the new mine or expansion project.
Up to 3% of the cost of natural gas notionally acquired at an LNG facility inlet meter for a major LNG facility for the tax year, plus unused credit carried forward. The claim is capped at the least of that amount, the B.C. corporate income tax payable after other B.C. credits, or the amount that reduces B.C. corporate income tax to what a 9% general rate would give. In effect this is up to 3% of B.C. taxable income subject to the general rate.
Tax Credit
Description:
The natural gas tax credit refunds a portion of the B.C. corporate income tax paid by qualifying corporations.
The credit is available to qualifying corporations that own natural gas immediately after the natural gas has passed through a liquefied natural gas (LNG) facility inlet meter for a major LNG facility during the tax year.
20% of qualified mining exploration expenses less any assistance received or receivable; enhanced rate of 30% for qualified mineral exploration in prescribed Mountain Pine Beetle affected areas; fully refundable
Tax Credit
Description:
The mining exploration tax credit (METC) is for eligible corporations, and corporations that are active members of partnerships conducting grassroots mineral exploration in B.C.
To be eligible, the corporation or partnership must incur qualified mining exploration expenses for determining the existence, location, extent or quality of a mineral resource in B.C.
25% of eligible salary and wages incurred after August 31, 2025 (17.5% of eligible salary and wages incurred before September 1, 2025); fully refundable, first applied against total income tax payable
Tax Credit
Description:
The interactive digital media tax credit (IDMTC) is for eligible registered corporations that develop interactive digital media products.
The tax credit rate is 25% of eligible salary and wages incurred after August 31, 2025, and 17.5% of eligible salary and wages incurred before September 1, 2025.
25 percent of the eligible amount of a farming corporation’s qualifying gifts for the tax year (non-refundable income tax credit)
Tax Credit
Description:
The farmers’ food donation tax credit is a non-refundable income tax credit to encourage farmers and farming corporations to donate certain agricultural products that they produce in B.C. to registered charities, such as food banks or school meal programs.
The credit is 25 percent of the eligible amount of a farming corporation’s qualifying gifts for the tax year.
A portion of the land value, ranging from 20% to 30% by neighbourhood and zoning district up to a maximum limit of $6.5 million, taxed at the DPRP rate that was 50% lower than the blended general purpose tax rate for Class 5 and Class 6 properties
Tax Credit
Description:
The Development Potential Relief Program (DPRP) pilot provides tax relief for eligible Light Industry (Class 5) and Business and Other (Class 6) properties.
Supported by provincial legislation, the program aims to help independent businesses and community partners who are paying disproportionately high taxes because of development potential.
Five percent of qualifying expenditures paid on the retrofit
Tax Credit
Description:
The clean buildings tax credit is a refundable income tax credit for qualifying retrofits that improve the energy efficiency of eligible commercial and multi-unit residential buildings with four or more units.
$6,000.00
Tax Credit
Description:
The Training Tax Credit provides refundable income tax credits for employers who employ apprentices enrolled in apprenticeship programs administered through the SkilledTradesBC.
An Enhanced Tax Credit is available to employers of First Nations individuals and persons with disabilities that are entitled to a basic or completion tax credit, or that have received the federal apprenticeship job creation tax credit for the year.
$3,000.00
Tax Credit
Description:
The Training Tax Credit provides refundable income tax credits for employers who employ apprentices enrolled in apprenticeship programs administered through the SkilledTradesBC.
B.C.’s Completion Tax Credit is available for both Red Seal and non-Red Seal apprenticeship programs. The completion credit requires the apprentice to complete level 3 or 4 of a program.
$4,000.00
Tax Credit
Description:
The Training Tax Credit provides refundable income tax credits for employers who employ apprentices enrolled in apprenticeship programs administered through the SkilledTradesBC.
Throught the Basic Tax credit, employers who hire apprentices registered in non-Red Seal programs are eligible to claim 20% of wages up to a maximum of $4,000 per year for each apprentice, for the first 24 months of registration.
No fixed amount
Tax Credit
Description:
The small business venture capital tax credit is for corporations that invest in shares of a registered venture capital corporation or eligible business corporation.
The small business venture capital tax credit encourages investors to make equity capital investments in B.C. small businesses, in order to give small businesses access to early-stage venture capital to help them develop and grow.
Refundable credit of up to 90% of the base amount of Support for Publishers contributions received in the tax year
Tax Credit
Description:
The book publishing tax credit program applies to book publishing corporations that carry out business primarily in B.C.
Eligible book publishers may receive a credit of up to 90% of the base amount of Support for Publishers contributions received in the tax year.
Manitoba Business Tax Credits Currently Available:
No fixed amount
Tax Credit
Description:
A New or Expanded Business Grant is payable for new or expanded businesses or non-profit organizations that will create and maintain at least new 10 jobs after completion and that align with the economic development objectives in OurWinnipeg 2045 and the Economic Growth Action Plan
No fixed amount
Tax Credit
Description:
A Heritage Buildings Conservation Grant is payable for the conservation of a vacant or underutilized heritage building.
No fixed amount
Tax Credit
Description:
A Surface Parking Lot Redevelopment Grant is payable for a development on a surface parking lot located Downtown
Refundable credit of a percentage of wages and salaries: 25% up to a lifetime maximum of $5,000 per high-school co-op student; 15% up to $5,000 per post-secondary co-op student; 15% up to $2,500 per graduate per year for the first two years; 15% (20% rural and northern Level 1 and 2 apprentices, 25% high-school apprentices) up to $5,000 per apprentice per year; total maximum tax credit of $35,000 for an employer who hires an apprentice through five levels and two years as a journeyperson
Tax Credit
Description:
The Paid Work Experience family of tax credits provides qualified employers with a percentage of the wages and salaries paid to certain types of trainee employees and recent graduates working in Manitoba.
$10,000,000
Tax Credit
Description:
The Small Business Venture Capital Tax Credit (SBVCTC) provides a non-refundable Manitoba tax credit of up to 45% to individuals and corporations who acquire equity capital in eligible Manitoba enterprises. The program targets Manitoba companies that want to raise equity from higher net worth individuals, with a minimum investment of $10,000 per investor.
15% of eligible expenditures made after April 11, 2017 (20% for eligible expenditures made before April 12, 2017), applied against Manitoba corporate income tax payable, with a 20-year carry-forward and a three-year carry-back
Tax Credit
Description:
This program targets scientific research and experimental development (as defined for federal purposes) carried on in Manitoba. Corporations may earn a tax credit which can be applied against Manitoba corporate income tax payable in the year earned, with unused credits available for a 20-year carry-forward (previously 10 years) and a three-year carry-back.
8% tax credit
Tax Credit
Description:
The Manufacturing Investment Tax Credit supports businesses by provided an eight per cent tax credit (seven per cent refundable and a one per cent non-refundable) that acquire qualified plant, machinery and equipment for use in manufacturing or processing in Manitoba.
Up to a 40% refundable corporate tax credit on qualified labour expenditures and some marketing and distribution expenses; 35% for a company that pays less than 25% of its salaries and wages to Manitoba residents and incurs at least $1 million in qualifying Manitoba labour expenses annually
Tax Credit
Description:
The Manitoba Interactive Digital Media Tax Credit (MIDMTC) is a refundable corporate tax credit designed to help stimulate economic growth and job creation in Manitoba’s interactive digital media industry and attract new investment to the sector. The MIDMTC provides up to a 40% credit to businesses on qualified labour expenditures, and some marketing and distribution expenses, incurred in the development of eligible interactive digital media products for market.
Refundable tax credit at a basic rate of 45% of eligible salaries, up to a maximum 65% credit on eligible salaries with the frequent-filming (10%), Manitoba producer (5%) and rural and northern (5%) bonuses; or, by election, a 30% tax credit based on eligible Manitoba production costs
Tax Credit
Description:
A refundable tax credit for film and video productions is available, based on eligible salaries paid to Manitoba residents and qualifying non-resident employees for work performed on an eligible film or video produced in Manitoba.
Refundable tax credit equal to 40% of eligible Manitoba labour costs, maximum $100,000 per publisher per year, plus a bonus of 15% of Manitoba printing costs if an eligible book is printed on paper with a minimum of 30% recycled content
Tax Credit
Description:
To assist the development of the book publishing industry in Manitoba, the refundable Book Publishing Tax Credit is equal to 40% of eligible Manitoba labour costs.
7.5% tax credit on geothermal heat pumps manufactured in Manitoba plus 15% on the remainder of the geothermal system’s capital costs; a further 7.5% to Manitoba-based manufacturers on heat pump sales; refundable 10% on eligible capital costs of solar heating equipment; 15% on biomass fuel energy equipment used in a business
Tax Credit
Description:
Property owners who install a geothermal heat pump system in Manitoba can receive tax credits from the Manitoba government as follows:
The Green Energy Equipment Tax Credit has been expanded to include biomass fuel energy equipment that is installed in Manitoba and used in a business. The tax credit rate is 15%.
35% refundable tax credit on salary or wages paid to Manitoba-resident employees of the printer’s book printing division, with maximum revenue capped at $200,000 per book title
Tax Credit
Description:
Manitoba printers are eligible for a 35% refundable Cultural Industries Printing Tax Credit on salary or wages to its employees who were resident in Manitoba on December 31 of that tax year for their employment in the printer’s book printing division.
Refundable Manitoba tax credit of up to 45% to investors acquiring equity capital in community-based enterprises; each investor limited to 10% or less of the total tax credit issuance and a maximum investment of $60,000 per year; approved corporations have a $3 million lifetime limit on shares issued
Tax Credit
Description:
The Community Enterprise Development Tax Credit (CEDTC) provides a refundable Manitoba tax credit of up to 45% to individuals and corporations who acquire equity capital in community-based enterprises in Manitoba.
TIF grants of 80% of incremental municipal property taxes for up to 25 years (Downtown, designated Housing Improvement Zone, non-profit or Indigenous-government owned, or vacant-building rehabilitation) or for up to 15 years (outside Downtown/Housing Improvement Zone, or owned by a for-profit corporation); $20 million total for Downtown developments and $30 million outside the Downtown
Grant
Description:
The Affordable Housing Now Program provides support for the development of affordable rental housing that is also eligible through a funding program of the National Housing Strategy.
Tax Increment Financing (TIF) Grants will be awarded to approved projects that meet the minimum program requirements.
New Brunswick Business Tax Credits Currently Available:
Individual investors: 50% non-refundable personal income tax credit of up to $125,000 per year (investments up to $250,000, non-strategic sectors), or up to $500,000 per year in strategic sectors (investments up to $1,000,000); corporation and trust investors: 25% non-refundable corporate income tax credit of up to $125,000 per year (investments up to $500,000, non-strategic sectors), or up to $250,000 per year in strategic sectors (investments up to $1,000,000)
Tax Credit
Description:
The New Brunswick Small Business Investor Tax Credit provides a 50% (for investments made after April 1, 2015) non-refundable personal income tax credit of up to $125,000 per year (for investments of up to $250,000 in non-strategic sectors) to eligible individual investors who invest in eligible small businesses and/or community economic development corporations (CEDC) or associations (co-op) in the province.
15 percent of eligible expenditures, fully refundable
Tax Credit
Description:
The enhanced NB R&D tax credit of 15% is fully refundable, meaning that the credit benefits New Brunswick corporations even if the corporation does not have provincial taxes owing.
The new enhanced NB R&D tax credit, as with the previous tax credit, is applied to Scientific Research and Experimental Development (SR&ED) expenditures as defined by the federal Income Tax Act.
Newfoundland & Labrador Business Tax Credits Currently Available:
Non-refundable tax credit equal to 30% of the amount invested in the qualifying venture capital fund (QVCF), to a maximum tax credit of $75,000 per investor (maximum lifetime investment of $250,000)
Tax Credit, Investment
Description:
The Venture Capital Tax Credit Program (VCTC) is designed to encourage investment in businesses which can provide the highest returns to the provincial economy, and to encourage growth in industries such as information technology, and clean and ocean technologies, among others.
The VCTC allows investors to qualify for a non-refundable tax credit equal to 30 percent of the amount invested in a Qualifying Venture Capital Fund (QVCF).
Refundable tax credit of 15% of eligible research and development expenditures (expenditures must be eligible for the federal SR&ED tax credits)
Tax Credit
Description:
Individuals, corporations and partners of partnerships who have conducted scientific research or experimental development activities in the province of Newfoundland and Labrador during the taxation year might be able to claim the provincial Scientific Research and Experimental Development Tax Credit.
This refundable tax credit allows you to claim 15% of your eligible research and development expenditures as long as these expenditures are eligible for the federal Scientific Research and Experimental Development tax credits.
The lesser of $500 or the sum of 75% of the total contribution amount if it does not exceed $100; $75 plus 50% of the amount by which the total exceeds $100 if it does not exceed $550; or $300 plus 33 1/3% of the amount by which the total exceeds $550
Tax Credit
Description:
The Political Contributions Tax Credit is a non-refundable tax credit on contributions made to registered political parties, registered district associations or registered non-affiliated candidates, as defined under the Elections Act, 1991, of Newfoundland and Labrador.
Refundable tax credit of 40% of qualifying expenditures (eligible salaries plus 65% of eligible remuneration paid), limited to $40,000 per eligible employee per year and $2 million per company, or group of associated companies, in respect of all taxation years ending in a calendar year
Tax Credit
Description:
Effective January 1, 2015, eligible companies developing eligible IDM products in the province may avail of the NL IDM tax credit. This credit will be 40% of qualifying expenditures.
Credit of 10% of the capital cost of eligible property; CCPCs may receive a refund of the unused amount, up to 40% of the total manufacturing and processing tax credit
Tax Credit
Description:
Corporations that invest in capital property for use in qualified activities in Newfoundland and Labrador can claim a credit of 10% of the capital cost of eligible property to reduce Newfoundland and Labrador tax otherwise payable and in some cases may be refunded a portion of the credit.
A credit equal to 20% of the capital cost of eligible equipment, refundable up to 40% of the total GTTC
Tax Credit
Description:
Canadian Controlled Private Corporations (CCPC’s) that invest in equipment that generates or conserves renewable-source energy, uses fuels from waste, or makes efficient use of fossil fuels may be entitled to a credit equal to 20% of the capital cost of that equipment.
Refundable tax credit of 40% of eligible local labour costs, not exceeding 25% of production costs, to a corporation credit limit of $5 million for productions beginning on or after July 1, 2021
Tax Credit
Description:
This refundable provincial Corporate Income Tax credit is provided for eligible local film projects at a rate of 40% of eligible local labour costs, but may not exceed 25% of production costs.
Tax credit of 35% of the investment where qualifying activities are outside the North East Avalon or 20% within it; maximum annual tax credit of $50,000 per eligible investor; maximum capital raised of $3,000,000 per eligible company offering or project
Tax Credit
Description:
The Direct Equity Tax Credit Program (DETC) is designed to encourage private investment in new or expanding small businesses as a means of creating new jobs and diversifying the economy. An investment credit, in the form of a provincial income tax credit, is available to individuals and arm’s length corporations who invest as shareholders in eligible small business activities.
Refundable corporate income tax credit at the rate of 40% of eligible production costs, to a maximum tax credit of $20 million annually per project
Tax Credit
Description:
The All-Spend Film and Video Production Tax Credit is a refundable corporate income tax credit that is available to eligible corporations at the rate of 40% of eligible production costs, to a maximum tax credit of $20 million annually per project.
Nova Scotia Business Tax Credits Currently Available:
15 per cent rate on SR&ED expenditures incurred in Nova Scotia, for all corporations regardless of size; refundable where the credit exceeds Nova Scotia tax payable
Tax Credit
Description:
This credit offers tax relief to Nova Scotia corporations that incur qualified scientific research and experimental development (SR&ED) expenditures made in Nova Scotia, as defined by the federal Income Tax Act.
The lesser of 75% of the total contributions or $750, annually
Tax Credit
Description:
You can claim a tax credit on contributions made to candidates and recognized parties, as defined under the Nova Scotia Elections Act.
no fixed amount
Tax Credit
Description:
The New Small Business Tax Deduction eliminates provincial corporate income tax for new small businesses for the first 3 taxation years after incorporation.
Individual investors: 35% of an eligible investment (45% for approved corporations in the oceans technology and life sciences sectors), on a maximum annual eligible investment of $250,000 (maximum annual personal tax credit $87,500 at 35% and $112,500 at 45%); corporate investors: 15% of an eligible investment, on a maximum annual eligible investment of $500,000 (maximum annual corporate tax credit $75,000)
Tax Credit
Description:
The Innovation Equity Tax Credit is a non-refundable personal and corporate income tax credit available to eligible investors who invest in approved corporations.
The Innovation Equity Tax Credit encourages investors to make equity capital investments in eligible Nova Scotia small and medium corporations engaged in innovative activities contributing to inclusive economic growth and increase investment in innovation.
Non-refundable income tax credit of 25 per cent of the fair market value of the agricultural products donated (25 per cent of the value of the qualifying donations), for donations made on or after January 1, 2016
Tax Credit
Description:
Nova Scotia Department of Finance and Treasury Board Taxation and Federal Fiscal Relations Division Released December 2016 Guidelines for the Food Bank Tax Credit for Farmers Overview The Food Bank Tax Credit for Farmers is a non-refundable income tax credit for individuals or corporations that carry on the business of farming and donate agricultural products to eligible food banks in Nova Scotia. The credit is 25 per cent of the fair market value of the agricultural products donated and is available for donations made on or after January 1, 2016.
50 percent of the company’s Eligible Salaries, plus an additional 10 percent bonus for films shot inside the Eligible Geographic Area (EGA) and an additional 5% for production companies who have made three films in a two year period (Total Potential Tax Credit 65% of Eligible Salaries)
Tax Credit
Description:
The Film Industry Tax Credit is a refundable tax credit for costs directly related to the production of films in Nova Scotia.
Refundable tax credit equal to the lesser of 50% of qualifying expenditures or 25% of total expenditures, plus a 10% (qualifying) / 5% (total) geographic bonus outside Halifax Regional Municipality (up to 60% / 30%); marketing and distribution expenditures credited to a maximum of $100,000 per product
Tax Credit
Description:
The Digital Media Tax Credit is a refundable tax credit for costs directly related to the development of interactive digital media products in Nova Scotia.
The lesser of 50% of the eligible Nova Scotia labour expenditure less the value of any assistance received, or 25% of eligible Nova Scotia labour expenditure plus eligible overhead expenditure (calculated as 65% of the eligible Nova Scotia labour expenditure) plus 65% of eligible remuneration less twice the value of any assistance; plus an additional tax credit of 17.5% on eligible Nova Scotian animation labour expenditures
Tax Credit
Description:
The Digital Animation Tax Credit is a refundable corporate tax credit for qualifying labour expenditures directly related to the development of digital animation productions in Nova Scotia.
25% of the capital cost of qualified property minus related government assistance (acquired on or after 1 October 2022), to a maximum of $100 million per approved project across the duration of the project; 15% to a maximum of $30 million per approved project for property acquired before 1 October 2022
Tax Credit
Description:
The Capital Investment Tax Credit is a refundable corporate tax credit that can be claimed for capital costs directly related to acquiring qualified property for use in Nova Scotia as part of an approved project.
With certain exceptions, the tax credit is available to eligible corporations in the manufacturing, processing, fishing, farming, logging, storing grain and harvesting peat sectors.
Ontario Business Tax Credits Currently Available:
No fixed amount
Tax Credit
Description:
The Taxation Act, 2007 includes a refundable corporate tax credit (Small Beer Manufacturers’ Tax Credit) for small beer manufacturers that do not qualify as microbrewers in a given sales year, provided the corporation meets all the required criteria (including limits on production).
10% refundable Corporate Income Tax credit on eligible expenditures over $50,000 up to $500,000, to a maximum of $45,000 per corporation per year (enhanced 20% credit, maximum $90,000 per year, for property available for use from March 24, 2021 to before January 1, 2024)
Tax Credit
Description:
The Regional Opportunities Investment Tax Credit supports business investment, economic growth and job creation in designated regions across the province that lagged in employment growth between 2009 and 2019.
It is a 10% refundable Corporate Income Tax credit for corporations that invest more than $50,000 to construct, renovate or acquire eligible commercial and industrial buildings in these regions.
No specific amount specified
Tax Credit
Description:
The Ontario Production Services Tax Credit (OPSTC) is a refundable tax credit based upon Ontario qualifying production expenditures (labor, service contracts and tangible property expenditures) incurred by a qualifying corporation with respect to an eligible film or television production.
It can be combined with the federal Film or Video Production Services Tax Credit of 16% of qualified Canadian labor expenditures.
15% of eligible expenditures for a taxation year up to a maximum tax credit of $3 million (i.e., 15% of the $20 million limit); 10% for a maximum tax credit of $2 million a year before May 15, 2025
Tax Credit
Description:
Corporations may qualify to receive corporate income tax support for investments in buildings, machinery and equipment used for manufacturing or processing.
The OMMITC is a refundable corporate income tax credit for Canadian‑controlled private corporations (CCPCs).
Refundable tax credit: 40% of Ontario labour costs + M&D costs up to $100k per product (Non-Specified products); 35% of Ontario labour costs (Specified fee-for-service products and Digital Game Company Claims); no annual cap
Tax Credit
Description:
The Ontario Interactive Digital Media Tax Credit (OIDMTC) is a refundable tax credit based on eligible Ontario labor expenditures and eligible marketing and distribution expenses claimed by a qualifying corporation with respect to interactive digital media products.
no fixed amount
Tax Credit
Description:
The Ontario Film and Television Tax Credit (OFTTC) is a refundable tax credit based on the qualifying labor expenditures incurred by a qualifying production company for eligible Ontario productions.
No specific amount specified
Tax Credit
Description:
The Ontario Computer Animation and Special Effects (OCASE) Tax Credit is a refundable tax credit equal to 18% of the qualifying labor expenditures for eligible computer animation and special effects activities, incurred by a qualifying corporation in a tax year for an eligible production.
No specific amount specified
Tax Credit
Description:
The Ontario book publishing tax credit is a refundable tax credit of 30% on the qualifying pre-press, printing and marketing expenditures incurred during a tax year for an eligible literary work, by an Ontario book publishing company, up to a maximum credit of $30,000 per work.
Farmland is taxed at no more than 25% of your municipality’s residential property tax rate
Tax Credit
Description:
One of the ways the Government of Ontario supports agriculture is through the Farm Property Class Tax Rate Program.
If you are eligible for the program, your farmland is taxed at no more than 25% of your municipality’s residential property tax rate. Farmland does not include land and buildings used for residential purposes.
Non-refundable tax credit worth 25% of the fair market value of qualifying agricultural products donated to eligible community food programs
Tax Credit
Description:
An eligible person that donates agricultural products to eligible community food programs in Ontario may be able to claim the non-refundable Community food program donation tax credit.
25-30% refundable tax credit on eligible expenditures for each qualifying work placement (30% for employers with total payroll in the previous taxation year of $400,000 or less, 25% for $600,000 or more), to a maximum of $3,000 per work placement
Tax Credit
Description:
The Co-operative education tax credit helps encourage Ontario businesses to provide experiential learning opportunities and hands-on job experience to post-secondary students through co-op work placements. The 25-30% refundable tax credit is available to Ontario businesses that hire students enrolled in a post-secondary co-operative education program.
Approved Brownfields Rehabilitation Grant amount applied to a 60% reduction in the development charges payable for that property (after any demolition charge credits are applied)
Subsidy
Description:
Promotes brownfield redevelopment and Smart Growth on brownfield sites by providing a major economic catalyst in the form of an upfront reduction of the often large development charges that must be paid when a brownfield property is redeveloped.
No fixed amount
Tax Credit
Description:
The BRTA program encourages investment in sites where contamination has rendered the property vacant, under-utilized, unsafe, unproductive or abandoned.
The BRTA allows the City of Toronto to cancel all or a portion of the tax increase directly attributed to the increase in assessed value related to the remediation and development to help brownfield property owners offset the remediation costs incurred.
PEI Business Tax Credits Currently Available:
Quebec Business Tax Credits Currently Available:
Saskatchewan Business Tax Credits Currently Available:
Non-refundable tax credit on capital expenditures of $10 million or more: 15 per cent on expenditures up to 400M, 30 per cent on expenditures between $400M and $600M, and 40 per cent on expenditures exceeding $600M; total incentives claimed by any single project is $250M
Tax Credit
Description:
The Saskatchewan Value-added Agriculture Incentive (SVAI) is a non-refundable, non-transferable tax credit on capital expenditures valued at $10 million or more for newly constructed or expanded value-added agriculture facilities in Saskatchewan.
45 per cent tax credit to Saskatchewan-based investors in Eligible Startup Businesses; up to $225,000 in tax credits per annual investment in an ESB, maximum $140,000 claimed per tax year; an ESB can raise a maximum of $2 million under the program
Tax Credit
Description:
The Saskatchewan Technology Startup Incentive (STSI) encourages investment in early-stage tech startups that bring new products to market and create jobs in Saskatchewan.
STSI offers a 45 per cent tax credit to Saskatchewan-based investors supporting Eligible Startup Businesses (ESBs).
10 per cent refundable R&D tax credit for the first $2 million in annual qualifying expenditures by Saskatchewan CCPCs (on or after December 16, 2024); 10 per cent non-refundable credit on expenditures over the annual limit and for other corporations; total refundable and non-refundable credits limited to $1 million per corporation per year
Tax Credit
Description:
The Saskatchewan Research and Development (R&D) Tax Credit is designed to encourage private-sector R&D investment in Saskatchewan. It is available in respect to qualifying R&D expenditures incurred by corporations in Saskatchewan.
Transferable Crown royalty and freehold production tax credits at a rate of 25 per cent of eligible project costs, with a project-specific awarded credit cap of CAD$5 million (i.e., a maximum of up to CAD$20 million in recognized eligible costs per project)
Tax Credit
Description:
The Saskatchewan Petroleum Innovation Incentive (SPII) offers transferable Crown royalty and freehold production tax credits for qualified innovation commercialization projects at a rate of 25 per cent of eligible project costs. The program targets a broad range of innovations deployed across all segments of Saskatchewan’s oil and gas industry.
Tax credit of 45 per cent to 60 per cent (30 per cent provincial and 15 per cent to 30 per cent federal)
Tax Credit
Description:
Saskatchewan residents can invest in mineral exploration activities within the province by purchasing eligible flow-through shares issued by approved mineral exploration companies under the Saskatchewan Mineral Exploration Tax Credit (SMETC) program. The tax credit is 45 per cent to 60 per cent (30 per cent provincial and 15 per cent to 30 per cent federal).
Mineral exploration companies who utilize the SMETC are able to raise capital from investors via flow-through shares and flow-through warrants in order to fund their exploration activities.
No fixed amount
Tax Credit
Description:
The Saskatchewan Manufacturing and Processing (M&P) Investment Tax Credit (ITC) is available
to all M&P corporations filing a T2 Corporation Income Tax (CIT) return with some allocation of
taxable income to Saskatchewan. It is designed to encourage plant and equipment investment
for use in M&P activities in Saskatchewan. The ITC applies as a percentage of the total capital
cost of eligible building, machinery and equipment purchases.
Transferable royalty credits at a rate of 25 per cent of eligible project costs, with a project-specific awarded credit cap of CAD$5 million (i.e., a maximum of up to CAD$20 million in recognized eligible costs per project)
Tax Credit
Description:
The Saskatchewan Critical Minerals Innovation Incentive (SCMII) offers transferable royalty credits for qualified innovation commercialization projects at a rate of 25 per cent of eligible project costs. SCMII targets a broad range of innovations deployed across all segments of Saskatchewan’s aluminum, cobalt, copper, gallium, helium, lithium, magnesium, natural graphite, nickel, rare earth elements and zinc industries.
Reduction of the provincial Corporate Income Tax Rate (CIT) to six per cent for 10 consecutive years, extendable to 15 years if at least 50 per cent of the related R&D occurred and was conducted in Saskatchewan
Tax Credit
Description:
The Saskatchewan Commercial Innovation Incentive (SCII or ‘Patent Box’) is a new-growth tax incentive that offers eligible corporations a reduction of the provincial Corporate Income Tax Rate (CIT) to six per cent for 10 consecutive years for eligible corporations that commercialize their qualifying intellectual property in Saskatchewan.
This new growth tax incentive is open to any company, operating in any sector, from anywhere in the world, regardless of where or when the R&D for the qualifying intellectual property occurred.
Non-refundable, non-transferable 15 per cent tax credit on capital expenditures of $10 million or more for newly constructed or expanded eligible chemical fertilizer production facilities, claimed over a 10-year period
Tax Credit
Description:
The Saskatchewan Chemical Fertilizer Incentive (SCFI) is a non-refundable, non-transferable 15 per cent tax credit on capital expenditures of $10 million or more for newly constructed or expanded eligible chemical fertilizer production facilities in Saskatchewan.
Companies apply the benefit against corporate income tax (CIT) owing and are able to claim the benefit over a 10-year period once the new or expanded facility is brought into operation.
Transferable Crown royalty and freehold production tax credits at a rate of 20 per cent of eligible project costs, with a project-specific awarded credit cap of CAD$40 million (i.e., a maximum of up to CAD$200 million in recognized eligible costs per project)
Tax Credit
Description:
The Oil Infrastructure Investment Program (OIIP) offers transferable Crown royalty and freehold production tax credits for qualified projects at a rate of 20 per cent of eligible project costs.
Transferable crown royalty and freehold production tax credits at a rate of 15 per cent of eligible program costs, with a project-specific awarded credit cap of CAD$75 million
Tax Credit
Description:
The Oil and Gas Processing Investment Incentive (OGPII) offers transferable crown royalty and freehold production tax credits for qualified greenfield or brownfield value-added projects at a rate of 15 per cent of eligible program costs.
No fixed amount
Tax Credit
Description:
The Manufacturing and Processing (M&P) Profits Tax Reduction applies to firms in the manufacturing and processing industry. Eligible corporations can reduce their Saskatchewan income tax rate on Canadian manufacturing and processing profits by as much two percentage points. Saskatchewan-based firms with a high allocation of income to Saskatchewan will receive a larger tax reduction than firms with a low allocation of income.
No fixed amount
Tax Credit
Description:
Capital grants are available to undertake pre-development work needed to determine the feasibility of a housing project. This includes but is not limited to site and infrastructure studies, site and building plans, energy and accessibility modelling, etc. This incentive is available to non-profit housing providers city-wide and to private developers in the City Centre, and North Central, and Heritage neighbourhoods
No fixed amount
Tax Credit
Description:
Per unit capital grants and a five-year, 100% tax exemption are available for new affordable rental and ownership housing citywide, with priority given to developments in the City Centre, North Central and Heritage neighbourhoods
Transferable Crown royalty/freehold production tax credits at a rate of 15 per cent of eligible program costs, with a project-specific awarded credit cap of CAD$75 million (a maximum of up to CAD$500 million in recognized eligible costs per project)
Tax Credit
Description:
CMPII offers transferable Crown royalty/freehold production tax credits for qualified greenfield or brownfield value-added processing projects at a rate of 15 per cent of eligible program costs. CMPII is open to value-added processing projects across all segments of Saskatchewan’s aluminum, cobalt, copper, gallium, helium, lithium, magnesium, natural graphite, nickel, rare earth elements and zinc industries.
Yukon Business Tax Credits Currently Available:
15 per cent of total eligible expenses plus an additional 5 per cent of total eligible Yukon University expenses; refundable if it exceeds your payable income tax
Tax Credit
Description:
The Yukon research and development tax credit is a refundable credit equal to 15 per cent of total eligible expenses for scientific research and experimental development carried out in the Yukon, plus an additional 5 per cent of total eligible Yukon University expenses. Individuals resident in the Yukon on the last day of the taxation year and corporations with a permanent base in the Yukon can claim it.
Maximum annual credit of $650: 75 per cent of the first $400, 50 per cent of the next $350 and 33.33 per cent of the next $525 of contributions
Tax Credit
Description:
For contributions to a recognized territorial political party or candidate for election to the Yukon Legislative Assembly by:
individuals; or
corporations.
Up to 9.5 per cent on manufacturing and processing profits earned in the Yukon for large corporations; since January 1, 2021 the credit no longer applies to small corporations (formerly up to 0.5 per cent)
Tax Credit
Description:
A corporation manufacturing and processing in the Yukon
Large corporations can claim up to 9.5 per cent on manufacturing and processing profits earned in the Yukon
Small corporations can claim up to 0.5 per cent on manufacturing and processing profits earned in the Yukon
No fixed amount
Tax Credit
Description:
A foreign tax credit is a deduction from your payable Yukon tax.
You can claim this credit if you’ve already paid foreign income or profits tax.
The credit ensures that you are not taxed twice on the same income.
An individual tax credit of 25 per cent on the amount invested, for Yukon investors buying shares in the Yukon entity
Tax Credit
Description:
Yukon corporations or cooperatives can apply to the Yukon Business Investment Tax Credit for an individual tax credit for Yukon investors.
This tax credit allows Yukon entities to issue shares to Yukon investors in exchange for an agreed upon return and an individual tax credit of 25 per cent on the amount invested.
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Maurice
