Many Canadian business owners think you can only get one grant per project. That’s not always true. Grant stacking in Canada—using more than one government funding program for the same project—is often allowed if you follow the rules. If you do it right, combining federal and provincial funding can lower your costs. But you must respect each program’s funding limits and be open about all your sources, or you could risk having to pay money back or face an audit.
Grant stacking means using more than one government funding program for the same project. This can include federal grants, provincial grants, tax credits, and wage subsidies.
The main concern is not how many programs you use, but how much of your project’s costs are covered by public funding.
Most Canadian grant programs set a maximum percentage of public funding—called a stacking limit. For example:
Stacking limits usually include:
Private investment and bank loans do not count toward stacking limits.
Disclaimer: Stacking limits are set by each program and can differ. Always read the program guidelines for the exact rules.
In most cases, you can combine federal and provincial grants, as long as you stay within the total funding cap.
For example:
This is a typical and legal approach when you disclose all funding sources to each program.
GrantHub’s eligibility matcher can help you find programs by province, industry, and stacking rules in seconds.
Tax credits are handled differently from direct grants, but they often count as government assistance.
The Scientific Research and Experimental Development (SR&ED) Tax Incentive Program is a federal program from the Canada Revenue Agency.
Key facts:
If you receive a grant for the same R&D costs:
SR&ED can be stacked with grants, but you cannot claim both for the same dollar amount without making adjustments.
Transparency is required. Nearly every funding agreement asks you to declare:
If you do not disclose stacking, you could face:
GrantHub tracks active grant programs across Canada, making it easier to compare stacking rules for your project.
Even if each program approves your application, you are responsible for staying under the combined cap.
Some programs allow overlapping costs, but others require you to reduce the amount claimed. Always check the contribution agreement.
If you get new funding after approval, most programs require you to tell them within a certain time.
Refundable tax credits like SR&ED are often considered government assistance and must be disclosed.
Q: Is grant stacking legal in Canada?
Yes. Grant stacking is legal if you follow each program’s funding limits and disclosure rules. Most federal and provincial programs have clear stacking policies.
Q: Can I stack two federal grants together?
Sometimes. It depends on the programs and whether they fund the same costs. Some federal programs do not allow stacking with other federal sources.
Q: Do provincial grants affect my SR&ED claim?
Yes. Provincial grants for the same R&D work usually reduce the expenditures eligible for SR&ED credits.
Q: What happens if I exceed the stacking limit?
You may have to repay the extra funding. In serious cases, future applications can be rejected or flagged for review.
Q: Are loans included in stacking calculations?
Usually no. Repayable loans and private financing are not considered government assistance, but always check each program’s guidelines.
Grant stacking works best when you plan early. Start by mapping your project costs and then match them against programs with compatible stacking rules. GrantHub helps Canadian businesses compare funding programs, understand stacking limits, and spot conflicts before they become problems.
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