Did you know public funding can be a big help in getting your business up and running? We often hear about funding, but public funding might be new to you. It’s more than just business loans; there are plenty of tax credits and grants designed to help start and grow your business. 

This guide will explain federal and provincial tax credits, business grants, and other public funding options that can support your business. 

Essential Points: 

• Canadian government financing for small businesses includes loans, tax credits, and grants. 
• Unlike loans, grants are funds you can use in your business without needing to repay. 
• Tax credits can lower your taxable income, and some might even result in a tax refund. 

Tax Breaks for Small Businesses 

Tax credits are meant to support your business’s growth. “Tax breaks” and “tax credits” often mean the same thing because they can reduce the taxes your business owes. Some credits might even lead to a tax refund, boosting your small business’s cash flow. 

Some tax credits for small businesses are: 

• Scientific Research and Experimental Development (SR&ED) tax credit 
• Apprenticeship Job Creation Tax Credit (AJCTC) 
• Canadian Film and Video Production Tax Credit (CPTC) 
• Green Energy Tax Credit 
• Agriculture Tax Credit 

A Closer Look at Tax Credits 

SR&ED Tax Credit: Fostering Innovation 

The SR&ED tax credit is open to individuals, small businesses, corporations, and trusts to promote scientific and technological advances across industries. 

AJCTC: Boosting the Economy 

The AJCTC offers up to $2,000 in tax credits for each eligible apprentice, supporting companies that invest in apprenticeships. 

Local Support Through Province-Specific Tax Credits 

Besides federal credits, various provinces and territories offer specific tax credits, like: 

• CPTC in Manitoba, Ontario, and Quebec supports film production with up to 45% refundable credits on eligible labor costs. 
• Manitoba Green Energy Equipment Tax Credit offers 7.5% to 15% credits on installation costs of certain energy systems. 
• Agriculture-specific credits in BC, Prince Edward Island, and New Brunswick support the agricultural sector. 

With over 80 province and territory-specific tax credits listed on the CRA website, it’s worth exploring what’s available in your area. 

Exploring Business Grants 

Canadian small-business grants are another avenue for new business growth. Grants are essentially free money but must be reported as income on your tax return, unlike tax credits. 

Grants can support a wide range of activities, including: 

• Search and rescue operations
• E-commerce adoption
• Organic farming 
• Supporting women in trades 
• Book publishing 
• Mining operations 

Grants Across Industries 

Grants are available for various industries, from innovative manufacturing to oceanic industries like fisheries and aquaculture, businesses adopting new technologies, and farms transitioning to organic methods. 

Empowering Women Entrepreneurs 

Specific grants aim to support women entrepreneurs, such as the Native Women’s Association of Canada offering $10,000 for trade industry training, and a Manitoba program providing up to $50,000 for women-owned businesses. 

Kickstarting New Ventures 

There are grants for almost any new business idea, from starting a Canadian book publishing business to a mineral-prospecting business with grant amounts varying based on the venture. 

The Canadian government’s website is a comprehensive resource for exploring the available grants for small businesses, ensuring you have all the information you need to take advantage of these opportunities.