Can you combine grants? Stacking rules explained

Yes, you can often combine grants, loans and tax credits for the same project, but most programs limit how much total government help one project can get. That limit is called a stacking rule. Each program sets its own, so read the applicant guide and tell every funder about your other funding.

Combining funding is normal. A business might use a grant for part of a project, a loan for another part, and claim a tax credit at year end. What matters is that you follow each program's rules and never get paid twice for the same cost.

What is stacking?

Stacking means using more than one source of funding for the same project. Funders care about it because they don't want public money to cover more of a project than they intended, or to pay for a cost that someone else already paid for.

Most programs answer two questions in their guide:

How much total government help can this project get? This is often called the stacking limit. It usually counts federal, provincial and municipal help together.
What do you have to tell us? Most programs ask you to list every other source of funding, whether you have it yet or have only applied.

What counts toward a stacking limit?

It depends on the program, so check the program page and its guide. In general, funders look at all public help for the project, which can include:

Grants and non-repayable contributions from any level of government.
Repayable contributions, which some programs count in full and others count differently.
Loans from public lenders or Crown corporations, in some programs.
Tax credits, in some programs. Some funders reduce their share if you will also claim a tax credit on the same costs.
Help from a delivery partner that passes on government money.

Private money, such as your own cash, a bank loan or an investor, usually doesn't count toward the limit. Many programs actually require some of it, through cost-sharing or matching funds.

Can two programs pay for the same cost?

Usually not. Even when a program allows stacking for a project, it rarely lets two funders pay for the exact same invoice. The cleanest approach is to split the project so each funder covers a different set of eligible costs.

For example, a technology company might ask one program to help with developer wages, and another to help with trade show travel for a new market. Each funder sees a clear, separate share. Keep your records so you could show which receipt went to which claim.

How do tax credits fit with grants?

Tax credits follow their own rules. With a credit like SR&ED, the amount you can claim may go down when part of the same work was paid for by government help. That doesn't mean you can't use both. It means you need to account for the grant when you calculate the credit. Our post on SR&ED and IRAP explains how these two often work side by side.

If you're unsure, ask your accountant before you sign anything, and check the program page.

What happens if you don't disclose other funding?

Funders take this seriously. If you don't report other funding and they find it later, they can reduce what they pay, ask for money back or end the contribution agreement. Audits often look at exactly this. Being upfront costs you nothing and protects you.

Tell each funder:

Every other program you have applied to for this project, even if you haven't heard back.
Any approvals, with what they cover.
Any change later, such as a new approval or a withdrawn application.

How do you plan a stacked project?

A few habits make stacking simpler:

Start with one budget. Build a single project budget that shows every cost and every source of money.
Map costs to funders. Mark which funder covers which line, and what you pay yourself.
Read each stacking rule early. Note the limit and what counts, then check that your plan stays under it.
Watch the timing. Many programs only cover costs after approval. See apply before you spend.
Think in layers. Federal, provincial and city programs often fit together. Our post on funding layers shows how.

To find programs that fit your project, try the eligibility check or browse growth funding and funding for small businesses.

Frequently asked questions

Can I get a federal grant and a provincial grant for the same project?

Often yes, as long as you stay within each program's stacking limit and you disclose both. Many programs expect several funders on larger projects. Check each program page for its rules.

Does a loan count toward the stacking limit?

It depends on the program. Some count public loans or repayable contributions, others don't, and some count them in a different way. The applicant guide usually explains it. When in doubt, ask the funder.

Do I have to tell a funder about an application that hasn't been approved yet?

Most programs ask you to list pending applications as well as approved ones. It helps the funder plan and avoids problems later. Update them if anything changes.

Can a grant and a tax credit cover the same wages?

Sometimes, but the tax credit may be reduced by the grant. Check the program page and talk to your accountant before you count on both.

This article explains how funding generally works. Each program sets its own rules, amounts and dates: check the program page and the funder’s site before you apply. A CanGrant editor hasn’t reviewed this article yet.