Federal Budget 2025: Unlock Growth, Innovation, and Funding

The 2025 Federal Budget makes it clear: Canada is doubling down on innovation, productivity, and investment. For Canadian businesses, this isn’t just policy, it’s a roadmap for growth, modernization, and global competitiveness.

The 2025 Federal Budget is here and it’s packed with opportunities for Canadian businesses. This year, the government is building, protecting, and empowering Canada’s economy through expanded incentives for R&D, emerging technologies, clean energy, and strategic industrial investment.

For your business, this isn’t just policy, it’s a roadmap for growth, modernization, and global competitiveness. These measures create more ways to access R&D incentives, maximize SR&ED benefits, and take advantage of new funding programs, helping you accelerate your projects, scale operations, and strengthen competitiveness.

At Ayming Canada, we help companies turn these programs into real financial results. Let’s break down what’s new and how your business can benefit.

Managing spending while prioritizing investment

The government is tightening its belt in some areas but protecting and expanding funding where it matters most, innovation and business growth. While most departments are seeing reduced operating costs, key programs that drive R&D, capital investment, and industrial expansion are being strengthened.

In short: more opportunities for you to grow, modernize, and compete.

Major wins for SR&ED and R&D incentives

If your business invests in innovation, this is the moment you’ve been waiting for. The 2025 Budget introduces the biggest updates to the SR&ED program in over a decade, meaning higher refunds, broader eligibility, and more ways to claim your R&D investments.

Key changes include:

The enhanced 35% SR&ED credit now applies to up to $6 million in eligible expenditures.
The taxable capital phase-out thresholds have increased, starting at $15 million and phasing out at $75 million.
Extending eligibility for the enhanced ITC rate of 35% to eligible Canadian public corporations (ECPC).
Restore the SR&ED eligibility of capital expenditures for both the deduction against income and the ITC components of the SR&ED program.

The best part, the government has confirmed these enhancements will be legislated for taxation years beginning on or after December 16, 2024. Giving your business the confidence to plan ahead and even claim enhanced SR&ED benefits on recent R&D investments.

These are not just technical changes, they’re game changers. For many businesses, this means tens or even hundreds of thousands of dollars in additional refundable credits.

Expanded investment tax credits and government funding

Beyond SR&ED, the 2025 Budget expands several major funding programs to help Canadian businesses invest, adapt, and scale.

Industrial and emerging tech: $5B Strategic Response Fund to support supply chain diversification, tariff adaptation, and market expansion.
Clean technology manufacturing: Additional critical minerals added to the eligibility list; antimony, indium, gallium, germanium, and scandium.
Critical minerals and sustainability: $2B Critical Minerals Sovereign Fund and expanded demonstration funding, plus a stronger exploration tax credit.
Capital investments: Over $32B in new funding for infrastructure modernization and technology adoption.
CCUS support: Extended Carbon Capture, Utilization, and Storage (CCUS) tax credit, maintaining full credit rates through 2035.

These measures mean more funding streams across industries. From manufacturing and clean tech to resource development and advanced innovation.

Trade, skills, and global growth

Canada is also betting big on global expansion and workforce development:

Aiming to double non-U.S. exports over the next decade.
Increasing regional development funding and defence sector partnerships.
Expanding training programs to close the skills gap in clean tech and advanced manufacturing.

For innovative companies, these initiatives open doors to new markets, talent, and partnerships.

Turn opportunity into action

The 2025 Federal Budget is packed with opportunities to fund your projects, reduce costs, and accelerate innovation.

At Ayming Canada, we specialize in helping businesses like yours:

Identify the right funding programs to support and engineer your projects from concept to completion.
Maximize R&D tax credits, investment incentives and government funding claims to increase returns on your innovation investments.
Navigate complex funding landscapes with clarity and confidence, ensuring every project reaches its full potential.

Whether you’re planning new projects or already investing in R&D, now’s the time to act. Our team of funding and tax credit experts can help you engineer your projects to success and unlock the full potential of the 2025 Budget.