The Main Types Of Manufacturing Grants Available
Many Canadian funding programs support technology, innovation, and workforce development in manufacturing.
Understanding how they are structured can help you find the grants that fit your project.
Equipment and automation funding
Helps pay for machinery, robotics, and production equipment.
Innovation and R&D grants
Support projects that improve products, processes, or how things are made.
Workforce training programs
Covers training costs when adopting new technology or upskilling employees.
Manufacturing tax credits
Provide tax savings for investing in equipment or innovation. These can be refundable or non-refundable depending on the program.
Regional economic development funding
Helps businesses grow and improve productivity. It also supports adopting new technology in specific regions.
With these categories in mind, you can move into specific programs and identify what fits your needs.
Canadian Manufacturing Grants And Automation Programs
Canadian manufacturers can access funding through federal, provincial, and regional programs. These programs support automation, equipment upgrades, process innovation, training, and productivity improvements.
Hidden
Federal Programs
NRC IRAP (Industrial Research Assistance Program)Â
- Maximum benefit: Up to ~80% of eligible R&D labour costs
- Best for: Manufacturers developing or improving processes, testing automation concepts, or solving production challenges
NGen Advanced Manufacturing Supercluster ProgramÂ
- Maximum benefit: Up to 44.4% of project costs
- Best for: Collaborative automation projects such as robotic welding, advanced manufacturing systems, and digital transformation initiatives
- Maximum benefit: Varies, often in the millions for large projects
- Best for: Large-scale automation, facility upgrades, and long-term manufacturing transformation projects
- Maximum benefit: Typically covers up to two-thirds of training costs
- Best for: Training employees to operate new automation equipment, robotics systems, or updated production processes
Scientific Research and Experimental Development (SR&ED) Tax CreditÂ
- Maximum benefit: Refundable and non-refundable tax credits depending on eligibility
- Best for: Process improvements, custom automation development, and solving technical production challenges
Ontario Programs
Advanced Manufacturing & Innovation Competitiveness (AMIC) StreamÂ
- Maximum benefit: Up to 15% of eligible costs (often up to $5M)
- Best for: Capital equipment purchases, robotic systems, and expanding production capacity
Ontario Automotive Modernization Program (O-AMP)Â
- Maximum benefit: Up to $150,000 (50% of project costs)
- Best for: Automotive suppliers investing in automation, robotics, and productivity improvements
Southwestern Ontario Development Fund (SWODF)Â
- Maximum benefit: Varies by project
- Best for: Manufacturers expanding operations, adding automation, or upgrading equipment in Southwestern Ontario
Eastern Ontario Development Fund (EODF)Â
- Maximum benefit: Varies by project
- Best for: Equipment investment, process improvements, and facility upgrades in Eastern Ontario
Ontario Innovation Tax Credit (OITC)Â
- Maximum benefit: Refundable credit for eligible corporations
- Best for: Smaller manufacturers investing in R&D and process innovation
Ontario Research and Development Tax Credit (ORDTC)Â
- Maximum benefit: Non-refundable credit on R&D spending
- Best for: Ongoing product or process development tied to manufacturing improvements
Ontario Made Manufacturing Investment Tax Credit (OMMITC)Â
- Maximum benefit: Up to 10% refundable tax credit (higher for some manufacturers depending on eligibility)
- Best for: Machinery, equipment, and building investments used in manufacturing operations
Alberta Programs
Alberta Manufacturing Productivity Grant (AMPG)Â
- Maximum benefit: Up to $30,000 (matching funding)
- Best for: Identifying automation opportunities, conducting productivity assessments, and planning technology upgrades
Alberta Innovates Innovation Voucher ProgramÂ
- Maximum benefit: Up to $100,000
- Best for: Developing new manufacturing technologies, testing automation solutions, and advancing product or process innovation
Alberta Innovates Micro-Voucher ProgramÂ
- Maximum benefit: Up to $10,000
- Best for: Early-stage testing, feasibility studies, and small-scale automation or process improvement projects
Quebec Programs
Investissement Québec ESSOR Program
- Maximum benefit: Up to 50% of eligible costs depending on project stream and region
- Best for: Digital transformation, Industry 4.0 adoption, and improving manufacturing productivity through new technology
Quebec Scientific Research and Experimental Development (SR&ED) Tax CreditÂ
- Maximum benefit: Varies by project and eligibility
- Best for: R&D activities, process development, and technical innovation in manufacturing
Hidden
Atlantic Canada Programs
- Maximum benefit: Up to 50% of project costs
- Best for: Scaling production, improving efficiency, and adopting automation technologies
Western Canada Programs
PrairiesCan Business Scale-Up and Productivity Program (BSP)Â
- Maximum benefit: Up to $5M per project
- Best for: Advanced manufacturing adoption, automation systems, and productivity improvements
Manufacturing Investment Tax Credits
Manitoba | Manufacturing Investment Tax Credit (MITC)Â
- Maximum benefit: 8% tax credit (primarily refundable)
- Best for: Purchasing manufacturing equipment, machinery, and production assets
Saskatchewan | Manufacturing and Processing Investment Tax CreditÂ
- Maximum benefit: Refundable tax credit on eligible equipment
- Best for: Investing in new or used machinery and upgrading production capabilities
Need help to find the right grant
for your automation project?
How To Choose The Right Grant For Your Automation Project
The most useful grant is the one that matches the scope, purpose, and location of your automation investment. A clear approach can help you narrow down the options quickly. Taking the time to match your project with the right funding can improve your chances of approval. It can also help you plan your automation investment more clearly.
Need help to find the right grant for your automation project?
Identify Project Type
- Equipment purchase such as robots, welding systems, or production machinery
- Process innovation to improve efficiency or solve production challenges
- Technology development for new systems, software, or custom automation
Confirm Geographic Eligibility
- Federal programs are available across Canada
- Provincial programs apply based on business location
- Regional agencies support projects within specific areas
Review Funding Structure
- Cost-sharing requirements determine how much you must invest
- Maximum funding amounts vary by program and project size
- Eligible expenses may include equipment, labour, training, or consulting
Consider Project Size
- Some programs support smaller upgrades and early-stage projects
- Others require larger investments, partnerships, or long-term planning
The Right Grant Can Make Automation More Accessible
Grants and tax credits can reduce the upfront cost of automation and help move projects forward faster. Many programs are designed to support improvements in efficiency, capacity, and overall production performance. When the right funding aligns with the right system, the return can be significant.
Automation projects that are planned and integrated well can improve throughput and consistency. You can see how this works in practice in the Funkhouser Manufacturing case study, where robotic integration helped greatly improve production efficiency.
