Government-sponsored economic development initiatives play a key role in shaping the business landscape in provinces across Canada. As the new fiscal year unfolds, Alberta, British Columbia, Ontario, and Quebec are unveiling their respective budget allocations to support entrepreneurship, innovation, and, ultimately, economic growth. This article provides an overview of the funding for businesses outlined in these budgets across these four provinces, highlighting key initiatives and investments within.
Funding for Businesses in Alberta
The petrochemical industry is an important sector in Alberta. To make sure this sector is growing, the government released the Alberta Petrochemicals Incentive Program (APIP). This program provides grants to encourage private sector investment in new or expanded projects that produce petrochemicals, hydrogen, fertilizer, and other fuel products. While this funding will play a critical role for companies in this sector, it is important to note that grant awards are capped at 12% of the capital costs of the full project. Applications are accepted on a rolling basis, with smaller capital investments ($50 million to $150 million) due by November 2025 and larger investments (above $150 million) due by November 2030.
Alberta’s budget also allocates $30 million for the Aboriginal Business Investment Fund. This program aims to fund capital costs for Indigenous community-owned economic development projects. To be eligible, the project must demonstrate how it will increase the number of Indigenous community-owned businesses, increase employment opportunities for Indigenous peoples, and/or increase local revenue streams for Indigenous communities. Applicants can see 100% of their project supported with these grant funds – with projects ranging from $150,000 to $750,000 each. Eligible groups will be able to apply from May 15, 2024, to September 14, 2024.
Other notable mentions from the budget include:
- The Alberta Carbon Capture Incentive Program (ACCIP) offers grants of up to 12% to eligible applicants to accelerate the development of new carbon capture, utilization and storage (CUS) infrastructure
- The Ministry of Tourism and Sport is implementing a 10-year Tourism Strategy, emphasizing support for air access and resort development across the province.
- The Ministry of Agriculture and Irrigation is directing resources toward key initiatives that encourage sustainable practices, and economic growth.
Beyond these highlighted programs, the government offers various initiatives to help businesses thrive, while investing in the province’s key priority areas. For more information, consult the Alberta Budget.
Funding for Businesses in British Columbia
British Columbia has historically provided several tax credit programs and grants to stimulate economic growth within the province. Of particular emphasis in this budget cycle are programs for energy efficiency.
For example, the CleanBC grant, and rebate program stands as a testament to the province’s dedication to environmental stewardship. This program will receive a top-up of $318 million. This program empowers individuals and organizations to embrace energy-efficient practices in building design and construction, laying the foundation for a greener, more sustainable future.
Other notable mentions from the budget include:
- Extension of the Training Tax Credit for employers until 2027 and for individuals until 2025. This program provides refundable income tax credits for employers who employ apprentices enrolled in apprenticeship programs administered through the SkilledTradesBC
- The Clean Buildings Tax Credit has been extended to September 30, 2027. This program encourages energy-efficient retrofits. This program is a refundable income tax credit for qualifying projects that improve the energy efficiency of eligible commercial and multi-unit residential buildings with four or more units.
- The Shipbuilding and Ship Repair Industry Tax Credit was extended for two years, until the end of 2026. This tax credit is for eligible employers that employ apprentices in the B.C. shipbuilding and ship repair industry.
- Budget increase of $2.5 million from 2022 to 2024 for The Small Business Venture Capital Tax Credit. By incentivizing investment in small businesses, the province cultivates a vibrant ecosystem where startups can thrive, driving economic growth and job creation.
The province’s commitment to fostering innovation and sustainability shines through in its budget priorities. with a focus on energy efficiency initiatives, tax credit programs, and grants, British Columbia aims to stimulate growth and drive positive change across various sectors. You can find out more by consulting the British Columbia budget.
Funding for Businesses in Ontario
Ontario’s commitment to economic growth and innovation is evident in the strategic investments outlined in its 2024 budget. With a focus on fostering business development, supporting key industries, and building a skilled workforce, the province aims to position itself as a global leader in advanced manufacturing, life sciences, and technology.
For example, the Invest Ontario Fund will receive $100 million. Invest Ontario is a central agency for businesses and investors and will drive economic growth, support strategic domestic firms, and attract business from around the world. This agency focuses on the three strategic sectors of advanced manufacturing, life sciences, and technology across Ontario.
The province is allocating $1 million annually to Regional Innovation Centers (RICs) to establish a new center in Barrie. The Regional Innovation Centers provide resources and networks for entrepreneurs, facilitating business growth and job creation.
The Forest Biomass Program will receive $20 million annually as an allocation over the next three years. This additional funding will bolster efforts to harvest more wood from Crown forests for both traditional and innovative products, fostering job creation and regional economic development.
The Northern Energy Advantage Program (NEAP) will receive an additional $86 million in funding over the next three years to sustain its support for large industrial operators, fostering economic resilience and prosperity in Northern communities.
Another priority of the Ontario government is to build a skilled workforce. Here are a few examples of what they will assemble over the next 12 months:
- The Skills Development Fund Training Stream will receive $100 million in 2024-2025 to assist workers in advancing their careers;
- The Skills Development Fund Capital Stream has received $224 million to enhance access to training centers, aiding unions, Indigenous centers, and industry associations in building, or upgrading facilities with modern equipment;
- The Skills Development Fund will receive $7.3 million to support Indigenous workers in Northern Ontario for jobs in forestry, construction, and healthcare;
- Investment of $62.9 million in skilled trades careers, including the expansion of the Ontario Youth Apprenticeship Program.
From bolstering regional innovation centers to enhancing support for forest biomass programs and investing in workforce development initiatives, Ontario’s budget reflects a comprehensive strategy to drive prosperity and opportunity across the province. A full copy of the Ontario budget can be found here: https://budget.ontario.ca/.
Funding for Businesses in Quebec
To ensure that companies have a skilled workforce ready to meet future challenges, the Quebec government will invest in improving graduation rates in the energy transition sector. The government will allocate $26 million over five years to enhance graduation rates.
Another sector of key focus in the budget is aluminum. Canada is the fourth largest producer of aluminum in the world and Quebec is home to the largest aluminum smelter in Canada. To continue the development of this sector, the government will provide $31 million over three years to:
- Accelerate the shift to 4.0, which consists of businesses integrating information technologies and robotization;
- Modernize businesses in the sector and boost their exports;
- Accelerate innovation and research to leverage Quebec’s green aluminum. ELYSIS, which is a Quebec innovation, eliminates GHGs directly linked to aluminum production.
The construction industry will also be supported. The government plans to invest around $126 million over three years to increase the available workforce and productivity in the construction industry. These initiatives will help meet demand in the construction industry, which is expected to grow over the next few years with several major worksites and investments in the residential, industrial, and utilities sectors.
The 2024-2025 budget also includes:
- $74.5 million over five years to develop the aerospace sector by developing new aerospace technologies, attracting talent, and making businesses more competitive
- $203.6 million over five years to promote the adoption of new technologies and research
$107.5 million over five years to foster the development of the bio-food sector.
Quebec’s 2024-2025 budget represents a forward-thinking approach to economic development and sustainability. By investing in workforce training, sectoral growth, and technological innovation, the government aims to position Quebec as a leader in key industries such as energy, aluminum, construction, aerospace, and bio-food. The Quebec budget is available here: https://www.finances.gouv.qc.ca/Budget_and_update/budget/index.asp.
Overall, these budgetary allocations emphasize the provinces’ dedication to driving prosperity, innovation, and opportunity for businesses and communities alike.
