With a growing concern for the environment, Cleantech Grants are emerging rapidly, which begs the question, how can you receive one? Grants can provide important capital to help you fund ongoing R&D projects, salaries, and marketing activities making them a highly desired asset. Luckily for you, there are many grants that your competitors may not know about, and we know just the tips and tricks on how to find them and make sure you receive one. Here is everything you need to know:
Which Cleantech Grants Should You Apply to?
The type of grantthat you’ll apply for will be determined by a variety of factors including your goals and eligibility. Below you can find a list of the most popular grants in this space, how they can benefit you, and their application requirements.
Industrial Research Assistance Program (IRAP)
IRAP accelerates research and development projects for Canadian innovators. Businesses can apply for funding contributions to develop and implement industrial process solutions and technology adoption projects.
Amount: Up to 60-80% of internal technical labor and subcontractor expenses Eligibility: Employ 1-500 staff, incorporated for ≥2 years, committed to internal R&D activities Timeline: Projects require approval before spending, with funding running from April 1 to March 31 Project Activities: Develop innovative products, processes, and services to solve internal technical challenges
Innovative Solutions Canada (ISC)
ISC provides grants and procurement contracts to stimulate technology research, development, and commercialization, helping SMEs overcome development hurdles and improve government operations.
Amount: Phase 1: Up to $150k; Phase 2: Up to $1M; Phase 3: Procurement contracts with no maximum Eligibility: For-profit, privately held Canadian businesses with a maximum of 499 full-time employees Timeline: Ongoing departmental innovation challenges with unique deadlines Project Activities: Proof of concept and prototype development projects to solve federal government departmental innovation challenges
Strategic Innovation Fund (SIF) – Net Zero Accelerator
The SIF Net Zero Accelerator Program supports rapid decarbonization projects, R&D, commercialization scale-up of clean technologies, and industrial transformation to reduce greenhouse gas emissions.
Amount: Up to 50% in grant and/or loan funding for projects with a minimum budget of $10 million Eligibility: Businesses operating in Canada with high growth potential and projects that result in significant environmental and economic benefits Timeline: Continuous application intake Project Activities: Development/adoption of cleantech across all industrial sectors, with a focus on aerospace, automobile manufacturing, and battery innovation
Sustainable Canadian Agricultural Partnership (SCAP)
SCAP aims to strengthen the competitiveness, innovation, and resilience of the agriculture, agri-food, and agri-based products industries through sustainable cleantech and energy projects.
Amount: Varies by program, up to $3 million per project Eligibility: Specific to each SCAP program Timeline: Programs run until 2028 Project Activities: Diverse agricultural projects, such as the Meat Processing Capacity Initiative (MPCI), which offers up to $150,000 in grants for eligible meat processors and abattoirs in Ontario
What if none of these Cleantech Grants Apply to You?
Aside from grants, you can obtain funding in other forms, such as tax credits. Tax credits provide excellent resources that improve your financial situation. There are several Cleantech Investment Tax Credits available for all types of projects.
Amount: Up to 60% for capturing carbon from ambient air, up to 50% for capturing carbon from other sources, up to 37.5% for transporting, storing, or utilizing captured carbon Timeline: Tax credits available for expenditures from January 1, 2022, to December 31, 2040, with reduced credits from 2031
Amount: Up to 30% for investments in eligible property operational between March 28, 2023, and the end of 2033 Timeline: Reduced to 15% for property operational in 2034, no credit after 2034
Amount: Up to 40% for hydrogen production projects operational between March 28, 2023, and the end of 2033 Timeline: Reduced credits for projects operational in 2034, no credit after 2034
Amount: 30% for investments in eligible property used for clean technology manufacturing and critical mineral extraction and processing from 2024 to 2031 Timeline: Reduced credits through 2034
Amount: Up to 15% for investments in projects generating clean electricity or storing electricity without fossil fuels Timeline: Available for projects starting construction after the 2024 federal budget, no credit after 2034
Not Sure What Funding is Best For Your Cleantech project?
Finding the right funding for your project can be extremely overwhelming and time consuming. For this reason, we recommend that you speak with an expert in government funding. At Leyton, our experts can not only advise on the best funding option for you, but they can also apply on your behalf so you can focus on what really matters to you.
