Federal Budget 2022 Expands Existing, and Introduces New,  Incentive and Grant Programs 

The 2022 Federal Budget identified a number of initiatives focusing on housing, climate change, a stronger economy, bolstering the defence budget and a dental care program for Canadians. With the elimination of most Covid emergency support programs, the deficit in 2022-23 will be $58.4B, significantly lower than $144.5B in 2021-22.  The economy, measured by the GDP, is expected to grow by 3.9%. 

To achieve government objectives in housing, climate change, and a stronger economy, the Budget expanded and introduced new incentive and grant programs while modifying others. The GrantMatch team has put together a helpful summary of the most relevant budget updates and funding program announcements below. 


Initiatives to Foster Economic Growth

  • Canadian Agricultural Partnership, which has supported the provincial and territorial agricultural food sector through a series of grant and incentive programs, will be renewed following negotiation of partnerships under a new framework in 2023
  • $1.1B over five years to create and fund a new Canadian Innovation and Investment Agency to work with businesses and industries to help make investments to make needed innovations. To be launched in the fall of 2022
  • Scientific Research and Experimental Tax Credit (SRED) to be reviewed to ensure its continued effectiveness and identify ways to modernize and simplify the program
  • Phase-out of Small Business Tax of 9% more gradually when taxable capital reaches $50M rather than $30M
  • Boost the Strategic Innovation Fund (SIF) by $1B over six years targeting critical mineral projects
  • New 30 per cent Critical Mineral Exploration Tax Credit for specified mineral exploration and renounced flow-through shares
  • $144.5M over five years to support research, development, and deployment of technologies to support critical mineral value chains
  • Accelerate deadline for provinces to allocate funding under Investing in Canada Infrastructure Program to March 31, 2023, with construction deadline extended to October 2033
  • Additional $450M for National Trade Corridors Fund (to be renamed to reflect focus on supply chains)
  • $15B over five years to establish a Canada Growth Fund to attract private sector investment to help reduce emissions, achieve climate goals, diversify the economy, and support critical supply chains. The Canada Growth Fund will be a new public investment vehicle operating at arm’s length from the government with a goal that for every dollar invested by the fund, three dollars will be invested from private capital.  Launch details to be set out in Fall 2022
  • $35M for CanExport Program to assist businesses secure IP security in foreign markets
  • $47.8M over five years to launch a new national lab to market platform to help graduates and researchers to take products to market
  • $45M over four years to support the semiconductor industry
  • $750M over six years to further growth and development of Canada’s Global Innovation Clusters
  • $16M over two years to the Atlantic Canada Opportunity Agency for the Job and Growth Fund to support long term investment to assist the PEI potato sector and supply chain
  • Compensation to the managed agricultural sector to be set out in Fall Economic Statement for changes to NAFTA
  • $20M over two years for new Indigenous Tourism Fund and $4.8M to support Indigenous Tourism Associations


Climate and Environment Programs

  • Extend $5,000 Zero Emission Vehicle (ZEV) purchase incentive to March 2025 and mandate sales target of ZEV of vehicles to achieve 100% for light vehicles by 2035; 35% for heavy vehicles by 2030
  • $500M for Canada Infrastructure Bank for large urban areas for ZEV charging and refueling stations; $400M to Natural Resources Canada for ZEV charging and refueling stations for sub-urban and remote areas
  • $547.5M over four years to Transport Canada to launch new incentive program for purchase of medium to heavy ZEVs
  • $199.6M over five years and $0.4M ongoing to expand Green Freight Assessment Program (to be renamed Green Freight Program) to support assessment and retrofits of vehicles and fleets currently on the road
  • Additional $329.4 M over six years to triple funding to the Agricultural Clean Technology Program
  • $469.5M over six years to expand the On-Farm Climate Action Fund
  • Refundable investment tax credit to be established for carbon capture, utilization, and storage
  • $2.2B over seven years to expand and extend the Low Carbon Economy Fund
  • $84.2M over four years to double funding for Union Training and Innovation Program for apprenticeships
  • $15M over five years to the Canadian Northern Economic Development Agency to support indigenous economic development
  • $247M to support community infrastructure in First Nations communities
  • $121.M to the National Arts Centre to support creation, production, promotion, and tour productions and $50M to compensate arts and heritage organizations for revenue losses due public health restrictions



  • $4B over five years to the CMHC to launch new Housing Accelerator Fund with aim to double housing construction over next decade. Fund to assist municipalities with planning, delivery, and creation of housing units.  Fund will use new single flexible application system
  • Create flexibility in existing infrastructure programs to tie infrastructure funding to increased housing supply including the Community Building Fund and other programs
  • $1.5B to CMHC to extend the Rapid Housing Initiative to create at least 6,000 housing units
  • $2.9B for the National Housing Co-Investment Fund to accelerate the creation and repair of 4,300 units for vulnerable Canadians (e.g., shelters, home for seniors and the disabled)
  • $500M to expand co-op housing. Program to be designed with the Co-operative Housing Federation of Canada.
  • $200M over five years to the Deep Retrofit Accelerator Initiative to support retrofit audits and project management for large projects to accelerate deep retrofits with focus on low-income affordable housing
  • $33M to the CMHC for the Greener Neighbourhood Pilot Program for six communities
  • $485.5M to CMHC for low interest loans and grants to low-income housing providers as part of the Canada Greener Homes Loans program to make affordable housing more energy efficient
  • $200M to develop and scale up rent-to-own projects under existing Affordable Housing Innovation Fund including $100M to support non-profits, co-ops, developers, and rent-to-own companies to build new rent-to-own units


Dental Care Program

  • $5.3B over five years and $1.7B ongoing to provide dental care to Canadians. This program will be phased-in with those under 12 years old in 2022; those under 18, seniors and the disabled in 2023; and full implementation by 2025. Program to be restricted to families with income less than $90k annually and no co-pays under $70K annually

Need some advice?

Not sure if your organization qualifies for government funding? Schedule a free assessment with us today.

Let's Connect