Ontario Creates funding combinations: grants, tax credits, and export support

Ontario Creates funding combinations: grants, tax credits, and export support

Ontario businesses rarely rely on just one funding program to grow. Instead, many use an Ontario Creates funding combination—a planned mix of grants, tax credits, and export support that covers different stages of growth. By combining several funding programs, businesses can reduce cash strain, speed up expansion, and lower risk.

This mix is common among manufacturers, tech companies, and exporters who invest in innovation at home and sell abroad.

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How Ontario Creates funding combinations work

A funding combination uses different program types for different costs—not claiming the same expense twice. In Ontario, the combination often includes:

• Upfront grants to offset market entry or growth costs
• Refundable tax credits to recover R&D spending after the fact
• Export support programs to help you sell outside Canada

Each tool supports your cash flow in a unique way.

Export grants for market expansion

Federal export grants are often the first step in an Ontario funding combination.

CanExport SMEs is one of the most widely used programs by Ontario businesses.

• Funding amount: $10,000 to $50,000 per project
• Cost coverage: Up to 50% of eligible expenses
• Eligible businesses: Canadian for-profit SMEs with 1–500 employees
• Eligible activities:
  • International marketing and branding
  • Trade shows and trade missions
  • Market research and IP protection
  • Travel related to export development
• Jurisdiction: Federal
• Status: Open

CanExport reimburses costs after you spend the money. Many Ontario companies pair it with other funding that helps cover expenses earlier in the project. This way, they can pay bills upfront and recover costs later.

Ontario tax credits to recover innovation costs

Tax credits are a key part of many Ontario funding combinations because they work alongside grants.

The Ontario Innovation Tax Credit (OITC) supports companies doing scientific research and experimental development (SR&ED) in Ontario.

• Type: Refundable corporate tax credit
• Credit rate:
  • 8% for taxation years starting after May 31, 2016
• Eligible costs:
  • SR&ED labour
  • Materials used in R&D
  • Contract expenditures related to SR&ED
• Who can claim: Corporations performing qualifying R&D in Ontario
• Jurisdiction: Ontario

Unlike grants, the OITC is claimed after your fiscal year ends. This makes it useful to combine with grants that reduce costs earlier in the project.

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Provincial export and sector-specific support

Ontario also offers provincial export and growth programs that can complement federal funding. These programs often focus on:

• Entering priority international markets
• Scaling Ontario-based operations
• Sector-specific growth (manufacturing, tech, creative industries)

When combined carefully, provincial export support can work alongside CanExport SMEs—as long as you do not claim two programs for the same expense.

Tools like GrantHub’s eligibility matcher can help you filter programs by province and industry in seconds. This is especially helpful when you are planning to combine several funding programs.

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What expenses can be combined—and what cannot

A successful Ontario Creates funding combination keeps costs organized.

Typically allowed in combinations:

• Export marketing costs (grant-funded)
• R&D labour and experimentation (tax credit–eligible)
• Travel for international business development (export grant–eligible)

Typically not allowed:

• Claiming two grants for the same invoice
• Using a tax credit on costs already fully reimbursed by a grant
• Mixing programs with conflicting timelines or reporting rules

You must keep your bookkeeping clear. Funders require organized records.

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Common mistakes to avoid

1. Using two programs for the same expense
   Even if programs are from different governments, overlapping claims can trigger audits.

2. Applying in the wrong order
   Many grants require approval before spending begins. Tax credits are claimed later.

3. Ignoring cash flow timing
   Grants are often reimbursed months after you pay expenses. Plan working capital.

4. Assuming tax credits reduce grant eligibility
   In most cases, refundable credits like the OITC can coexist with grants if costs are allocated correctly.

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Frequently Asked Questions

Q: Can Ontario businesses use both CanExport SMEs and Ontario tax credits?
Yes. CanExport SMEs covers eligible export development costs, while Ontario tax credits apply to qualifying R&D expenses. The same cost cannot be claimed under both programs.

Q: Is CanExport SMEs repayable?
No. CanExport SMEs provides non-repayable contributions, as long as you meet the program conditions and reporting requirements.

Q: Do tax credits reduce the amount of grant funding I can receive?
Usually no. Tax credits are claimed after the fact and do not automatically reduce grant amounts, but funders may ask for disclosure.

Q: Can startups build an Ontario Creates funding combination?
Yes, if they are incorporated and meet program criteria. Early-stage companies often combine export grants with refundable tax credits to offset cash burn.

Q: How many programs can I combine at once?
There is no fixed limit. The real constraint is whether each program funds different costs and follows its own rules.

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See also

• How to combine grants and loans without violating funding rules
• Ontario Scale-Up Programs: Support Options for Growing Tech Companies
• What Business Expenses Are Eligible Across Canadian Grants and Loans?

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Next Steps

Building an Ontario Creates funding combination takes planning, but combining several programs can dramatically reduce growth costs. GrantHub tracks hundreds of active grant, tax credit, and export support programs across Canada—check which ones match your business profile before you commit to spending. If you need help organizing your funding mix or finding eligible programs, GrantHub’s guides and tools can make the process much easier.