If you’ve ever started a grant application and reached the “eligible expenses” section, you know how confusing it can be. Canadian grant programs only reimburse or fund specific costs, and anything outside those rules is rejected. Understanding eligible expenses in Canadian grant programs upfront can save you weeks of work—and prevent costly mistakes.
Most federal and provincial programs have similar expense categories, but rules can vary.
Many grants cover salaries or wages for employees working directly on the funded project.
Eligible labour expenses often include:
For example, CanExport SMEs allows businesses to claim internal staff time spent on export planning and international market development, as long as it directly supports the approved project.
What’s usually not allowed:
Grants commonly fund third-party expertise when it’s required to complete the project.
Examples of eligible professional fees:
Under CanExport SMEs, eligible expenses include fees paid to external consultants for market entry strategies and regulatory research in foreign markets.
Tip: Always keep signed contracts and invoices. Verbal agreements are rarely accepted.
Some grants fund equipment, but the rules are strict.
Commonly eligible:
Common restrictions:
Many innovation programs, including those supported by NRC IRAP, focus on technology development. These programs may allow equipment costs if the equipment is essential to the innovation activity.
Travel is eligible only when it directly supports the project goals.
Eligible travel costs may include:
For CanExport SMEs, eligible marketing expenses include trade shows, international travel, and promotional materials used to enter new export markets. Meals and hospitality are often capped or excluded.
If your project requires physical inputs, these may qualify.
Eligible examples:
Not eligible:
The key test is always the same: would you buy this without the grant-funded project? If yes, it’s probably ineligible.
Most Canadian grants do not fully fund overhead. When they do, it’s usually capped.
Some programs allow:
Many federal programs exclude general overhead entirely unless explicitly stated in the funding guide.
Tools like GrantHub’s eligibility matcher can help you filter programs by province and expense type in seconds, so you don’t waste time on grants that won’t fund your costs.
Claiming expenses incurred before approval
Most grants only cover costs incurred after the official approval date. Anything earlier is usually disqualified.
Including general operating costs
Rent, internet, insurance, and bookkeeping are often excluded unless the program clearly allows overhead.
Missing documentation
No invoice, no reimbursement. Programs expect clear proof of payment and purpose.
Overestimating labour costs
Inflated or poorly tracked staff time is one of the most common reasons for clawbacks.
Q: Are owner salaries eligible expenses in Canadian grant programs?
Sometimes, but often not. Many programs exclude owner compensation unless it is clearly tied to technical or project delivery work and properly documented.
Q: Can I claim expenses from before I apply?
Almost never. Most grants only cover costs incurred after approval or after a specific project start date stated in your agreement.
Q: Are taxes like GST/HST eligible?
Usually no. If your business can recover GST/HST through input tax credits, the grant will exclude those amounts.
Q: Do all grants reimburse expenses the same way?
No. Some reimburse after you pay costs, while others provide advance payments or milestones. Payment timing is defined in the contribution agreement.
Q: Can I use the same expense for two grants?
Generally no. Double-dipping is prohibited unless both programs explicitly allow stacking for the same cost.
GrantHub tracks hundreds of active grant programs across Canada — check which ones match your business profile and expense needs.
Eligible expenses in Canadian grant programs are predictable once you know what funders look for: clear project links, reasonable costs, and solid documentation. Before applying, match your planned expenses against each program’s rules. See also: How to stack grants and loans without violating funding rules, How long do Canadian grant programs take to pay out funds?, and What business expenses are eligible across Canadian grants and loans?.
GrantHub helps you identify which grants actually fund your costs—so you can apply with confidence and avoid surprises later.
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