Many Canadian businesses miss out on available funding because they assume only one grant can be used at a time. In reality, stacking federal and provincial grants is often allowed — as long as you follow the rules about overlap, disclosure, and maximum support. The main risk is not stacking itself, but combining the wrong programs on the same costs.
Grant stacking is important because most government programs only cover part of your project. If you combine programs properly, you can reduce your out-of-pocket costs. Sometimes, this means saving tens or even hundreds of thousands of dollars. You can do this while staying fully compliant with the rules.
Grant stacking means using more than one government funding program to support a business activity, project, or expense. This can include:
Stacking is legal in Canada, but almost every program sets limits on:
Most programs require you to disclose all other government funding you receive for the same project.
The most important rule is simple:
You cannot claim two government programs for the same dollar of cost, unless a program clearly allows it.
For example:
This rule applies even when programs come from different levels of government.
Many grants include a maximum government assistance limit, often shown as a percentage of total project costs. Common caps include:
If a federal grant covers 60% of a project and the program cap is 75%, you may only be able to add up to 15% from provincial sources.
Always check:
If you are unsure, tools like GrantHub’s eligibility matcher can help you find compatible programs by filtering options by province and industry.
Stacking grants can be helpful, but mistakes can cause problems. Here are some errors to watch for:
1. Using one budget for multiple applications
Each application should clearly show which costs are funded by which program.
2. Failing to update funders after approval
Most programs require you to disclose new funding even after approval.
3. Assuming provincial and federal programs don’t communicate
They do. Data sharing between governments is common.
4. Ignoring assistance limits buried in the guidelines
Caps are often listed near the end of program documents.
Problems usually arise when businesses:
These issues can lead to clawbacks, denied claims, or loss of future eligibility.
A common and compliant form of stacking involves SR&ED tax credits, which exist at both the federal and provincial levels.
The BC Scientific Research and Experimental Development (SR&ED) Tax Credit supports eligible R&D performed in British Columbia.
Key points:
Because federal and provincial SR&ED programs are designed to work together, this type of stacking is allowed — as long as costs are properly adjusted and disclosed.
Stacking is more likely to be permitted when:
Programs fund different cost categories
(e.g., one covers equipment, another covers training)
Programs fund different phases of a project
(e.g., R&D vs. commercialization)
One program is a tax credit and the other is a grant, with proper cost adjustments
One program is federal and one is provincial, with clear disclosure
Q: Can I stack a federal grant and a provincial grant for the same project?
Yes, if the programs allow stacking and you do not claim the same expense twice. You must disclose all government funding to each funder.
Q: Do tax credits count as government assistance?
Yes. Most grant programs treat tax credits as government assistance when calculating stacking limits.
Q: What happens if I accidentally double-dip?
You may be required to repay funds or have future claims reduced. In serious cases, you can lose eligibility for future programs.
Q: Is stacking allowed for early-stage businesses with no revenue?
Often yes, but funding caps still apply. See also Can You Get Grant Funding Without Revenue? Early-Stage Eligibility Explained.
Q: Do I need written approval to stack grants?
Some programs require pre-approval, others only require disclosure. Always check the program guidelines.
Stacking federal and provincial grants can lower your costs, but only if you plan your funding mix early and follow disclosure rules closely. GrantHub tracks hundreds of active grant programs across Canada, making it easier to see which combinations fit your business profile before you apply.
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