Food & Beverage Mfg
Turn Test Kitchen Trial-and-Error Into Government R&D Funding
In Ontario's food and beverage sector, innovation drives scale, and most of the technical work that earns it qualifies for SR&ED. Reformulating for clean-label, extending shelf life, and scaling a recipe from a 5kg batch to a 5,000kg continuous run are exactly the kinds of problem-solving Canada's R&D program rewards. Innovotis recovers roughly $60,000+ for every $100,000 of eligible R&D salary, then bridges the wait so your line keeps moving.
Why It Matters
How SR&ED creates value for food & beverage
Recover Up To 64% of R&D Wages
SR&ED isn't just white-coat lab work, it covers the everyday technical problem-solving on your plant floor and in your test kitchen. Between the 35% federal credit and Ontario's refundable credits, you recover a meaningful share of eligible R&D salaries plus a portion of contractor and materials costs.
Subsidize Custom Machinery
Capital expenditures are eligible again in 2026. Pair SR&ED with the Ontario-Made Manufacturing Investment Tax Credit to offset the cost of custom-engineered equipment, line retrofits, and the process modernization needed to de-risk production.
Fund Growth Without Dilution
Launch new product lines, extend shelf life, or expand capacity without giving up equity or taking on high-interest loans. SR&ED is a federal entitlement that pays out over $4B a year, not a grant you compete for.
Get Capital Now, Not in 12 Months
CRA refunds take time. Innovotis bridges your approved SR&ED claim with financing at competitive rates, so seasonal cash flow and reinvestment never wait on the refund cycle.
2026 Incentives
The credits you can stack
| Incentive | Rate | Detail |
|---|---|---|
| Federal Enhanced ITC | 35% | Refundable on the first $6M of eligible spend for CCPCs, raised from $3M in 2026. |
| Ontario Innovation Tax Credit | 8% | Refundable credit aimed at small to mid-sized food and beverage innovators. |
| Ontario-Made Mfg Credit | 15% | Refundable credit on new machinery and equipment for qualifying manufacturers. |
recovered per $100,000 of eligible R&D salary
Eligibility
What qualifies in food & beverage
If your team is resolving genuine technological uncertainty, this work likely counts. Here's what we typically see qualify.
Alternative Formulations
Developing clean-label, gluten-free, plant-based, or sugar-reduced products that must hold the same texture, taste, and mouthfeel as the original, where the answer isn't in any cookbook.
Shelf-Life Extension
Experimenting with novel natural preservatives or Modified Atmosphere Packaging (MAP) to extend freshness without compromising quality, safety, or sensory profile.
Scale-Up Challenges
Resolving the technical failures that appear when moving from a 5kg test batch to a 5,000kg continuous production run, viscosity, heat transfer, yield, and consistency at volume.
Process & Equipment Engineering
Designing or modifying custom processing lines, automation, and CIP systems to hit new throughput, food-safety, or efficiency targets that off-the-shelf equipment can't meet.
Sustainability & Waste Upcycling
Developing biodegradable or recyclable packaging, or engineering new ways to turn manufacturing by-products and waste streams into value-added ingredients.