For Canadian manufacturers, the 2025 Federal Budget delivers a powerful mix of programs and incentives designed to boost competitiveness, modernize operations, and navigate today’s economic uncertainties. From supporting technological upgrades to offsetting tariff impacts, the budget creates tangible opportunities for manufacturers to strengthen their operations and expand globally.
Targeted financial support to navigate change
Recognizing the pressures on the manufacturing sector, including shifting supply chains, rising capital costs, and trade volatility, the federal government is offering programs that balance short-term stability with long-term growth.
Over six years, $5 billion has been allocated through the Strategic Response Fund to help businesses respond to tariffs, adopt new technologies, and modernize production lines. Meanwhile, Regional Development Agencies will provide up to $1 billion over three years to help SMEs absorb costs, implement operational improvements, and diversify markets through the Regional Tariff Response Initiative (RTRI). This program offers both repayable and non-repayable contributions for investments in automation, new equipment, and production expansion.
The Business Development Bank of Canada (BDC) is dedicating $231 million over five years to support SMEs in Canada’s steel manufacturing sector. The focus is on modernization, productivity gains, automation, and strategic growth initiatives to meet domestic and international demand.
Tax incentives that drive modernization and sustainability
Manufacturer’s in advanced production or clean technologies can benefit from federal tax incentives, including the Clean Technology Manufacturing Tax Credit and the Clean Technology Investment Tax Credit. These programs cover a significant portion of capital expenditures for processing equipment and eligible clean technology solutions, helping companies reduce environmental impact while improving efficiency.
Provincial Manufacturing Investment Tax Credits also offer opportunities to maximize savings, with refundable or non-refundable credits varying by province:
- Ontario: 10–15% refundable credit on eligible manufacturing equipment
- Quebec: 15–25% credit on equipment investments
- Manitoba: 8% credit (7% refundable, 1% non-refundable)
- Saskatchewan: 6% refundable credit
Enhance innovation with SR&ED
For manufacturers driving innovation, whether developing new products, improving processes, or advancing sustainability, 2025 brings important updates to the SR&ED program. These changes create additional avenues to reclaim R&D investments, giving your business more resources to reinvest in future-ready solutions.
Partner with Ayming to convert funding into growth
Canada’s manufacturing sector is at a pivotal moment, and businesses have more tools than ever to strengthen operations and pursue ambitious growth plans. Ayming Canada helps you unlock government funding, R&D tax credits, Investment Tax Credits guiding you every step of the way.
Let’s transform the opportunities in Budget 2025 into real results for your business. Contact Ayming today to get started.
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