15 active digital transformation and technology funding programs for Ontario businesses. From the 40% OIDMTC for game studios to the $5M AMIC ceiling for manufacturers — the post-CDAP landscape is smaller but deeper.
Organization: Government of Ontario
Level: provincial
Amount: 8% refundable rate
A refundable tax credit for Ontario CCPCs conducting eligible SR&ED activities. Prior-year taxable capital (associated group) must not exceed $50 million. The credit phases out above that threshold. File via annual T2 corporate tax return with federal SR&ED claim.
Organization: Ontario Creates / CRA
Level: provincial
Amount: 40% refundable (original IP); 35% for fee-for-service
No cap makes this one of Canada's most valuable gaming and digital media incentives. Studios routinely claim millions annually. Requires Ontario Creates certification and a Canadian-controlled corporation with permanent establishment in Ontario. Applies to video games, educational software, e-learning, and informational products.
Organization: Canada Revenue Agency / Government of Ontario
Level: provincial
Amount: 3.5% rate (non-refundable)
Often overlooked because it is non-refundable and "only" 3.5%, but it is essentially free money for profitable Ontario corporations already claiming federal SR&ED. Must file federal SR&ED expenditure claim on Form T661. Stacks with OITC and federal SR&ED on the same eligible expenditures.
Organization: Federal Economic Development Agency for Southern Ontario
Level: federal
Amount: Up to $10M (repayable contribution)
A repayable contribution (0% interest loan up to 50% of eligible costs) for southern Ontario businesses scaling digital operations, entering new markets, or enhancing productivity. Requires 2+ years of operation, 5–500 FTEs, confirmed co-funding from non-government sources, and a physical address in southern Ontario.
Organization: FedDev Ontario
Level: federal
Amount: $125K–$1M (non-repayable)
Rolling intake until funds exhausted. For tariff-impacted businesses in southern Ontario with 3+ years of operation, 5–499 FTEs, and a physical business address. Steel and automotive supply chain companies receive priority. Explicitly select "Non-repayable RTRI" on the application form — failure to specify can result in repayable-stream assessment only.
Organization: Ontario Ministry of Economic Development, Job Creation and Trade
Level: provincial
Amount: Up to $5M
Covers up to 15% of eligible project costs for Ontario manufacturers adopting advanced manufacturing technologies. Requires 3+ years of operation, 10+ FTEs, and a project that improves competitiveness through technology. Deadline: September 23, 2026. Rural SME stream ($500K max) is less competitive than the strategic stream.
Organization: Ontario Centre of Innovation (OCI)
Level: provincial
Amount: Up to $1M
For Ontario companies developing electric vehicle, connected vehicle, or autonomous vehicle technologies. Stream 1: up to $100K with 50% co-investment. Stream 2: up to $1M with 33–50% co-investment. Securing a strong industry partner (OEM, Tier 1 supplier, transit authority) before applying is the single most important factor.
Organization: Ontario Health / Ontario Ministry of Health
Level: provincial
Amount: $1.5M–$5M per project
Rolling intake. Funds health service providers to purchase commercially ready health technologies (TRL 8+), not the company directly. Must demonstrate value to Ontario patients and health budget. Out of scope: pharma, vaccines, HIS, infrastructure. Made-in-Ontario preference applies. Contact Innovation Concierge first.
Organization: Ontario Centre of Innovation (OCI)
Level: provincial
Amount: Up to $500K
Co-investment for Ontario life sciences or healthcare technology companies raising a pre-seed or seed round of $1M–$5M. OCI co-invests as a round participant, not a standalone funder. You must already have Ontario-based accredited investors committed before applying. Complete the interest form early in your round process.
Organization: Government of Ontario
Level: provincial
Amount: Up to $150K per project
Between intakes — Round 7 closed April 16, 2026; Round 8 timing TBD. For Ontario automotive suppliers with 30%+ of revenue from the automotive sector, fewer than 500 employees, and 2+ years of audited financials. Round 7 explicitly prioritizes AI-enabled solutions for predictive maintenance, quality control, and production optimization.
Organization: Communitech
Level: private
Amount: $10,000 non-repayable
For women and/or non-binary founders from equity-deserving groups running early-stage tech companies in Ontario. Must have completed market validation with paying customers or pilot agreements. No matching requirement. The program has graduated 20+ founders and Communitech publicly profiles alumni.
Organization: DMZ at Toronto Metropolitan University
Level: private
Amount: $500K–$1M in perks and services
Toronto-based incubator taking 2–2.5% equity. No cash grants — value is in-kind services, tech credits, and investor network access. Apply Pre-Incubator with early traction; Incubator when you have MRR and an active fundraising plan. Spring 2026 intake closed; Fall cohort TBA.
Organization: MaRS Discovery District
Level: private
Amount: Up to $500K in advisory support
Zero equity, zero fees — 100% funded by government economic development mandates. The Capital Program connects Canadian tech startups to VC firms and family offices. Eligible sectors include health, cleantech, fintech, and enterprise technology. Must be planning to raise seed or Series A within 1–12 months.
Organization: Invest Ottawa
Level: private
Amount: Mentorship + workspace
Ottawa-specific accelerator with no cash and no equity. Purely mentorship and network access. IO Launchpad for very early-stage founders; IO Accelerator for companies with $100K revenue or $1M raised. Rolling intake means apply anytime. Strong connections to Ottawa's government tech and defence ecosystem.
Organization: Global Affairs Canada
Level: federal
Amount: Up to $50,000 per project (50% cost-share)
The most accessible e-commerce-adjacent funding for Ontario businesses entering new international digital markets. Covers foreign marketplace fees, international digital marketing, and website localization. Up to $99,999 per company per fiscal year. Requires a CRA Business Number and export-readiness.
| Program | Rate | Type | Cap / Phase-Out | Best For |
|---|---|---|---|---|
| Ontario Innovation Tax Credit (OITC) | 8% | Refundable | Phased out above $50M taxable capital | CCPCs doing SR&ED in Ontario |
| Ontario Interactive Digital Media Tax Credit (OIDMTC) | 40% (original IP) / 35% (fee-for-service) | Refundable | No cap | Game studios, e-learning, interactive media |
| Ontario R&D Tax Credit (ORDTC) | 3.5% | Non-refundable | No cap | Profitable Ontario corporations claiming SR&ED |
| Program | Amount | Type | Matching | Best For |
|---|---|---|---|---|
| BSP (Business Scale-Up and Productivity) | Up to $10M | Repayable (0% interest) | 50% matched funding | Scaling digital operations |
| RTRI — Non-Repayable Stream | $125K–$1M | Non-repayable grant | 50% matched funding | Tariff-impacted firms (steel, auto) |
You have built an MVP, incorporated in Ontario, and are based in Toronto. You need non-dilutive capital to hire your first developer or invest in cloud infrastructure. You have no revenue yet, no university partnership, and you are not sure whether your work qualifies as "R&D."
Your first move is to determine whether your development involves technical uncertainty. If you are solving a software engineering problem with known approaches, it does not qualify for SR&ED. If you are building a novel algorithm, data pipeline, or system architecture where the outcome was uncertain in advance, it likely does. File Form T661 with your T2 return — you can refine eligibility through the CRA review process, but you cannot file late. The Ontario Innovation Tax Credit (8% refundable) stacks with federal SR&ED (35% refundable on up to $6M). For a Toronto SaaS startup spending $200K on eligible R&D salaries, the combined refundable credit is approximately $86,000 per year. If you do not have SR&ED-eligible work, consider DMZ Pre-Incubator or MaRS Capital Program for network access and investor introductions — though neither provides direct cash grants.
Source: Ontario Innovation Tax Credit; CRA SR&ED ProgramBudget 2025 raised the enhanced CCPC limit to $6M, making this stack accessible to more Ontario startups than before. File Form T661 within 18 months of your fiscal year-end even if eligibility is uncertain. Source: CRA SR&ED Technical Guide; OITC Program Page
You run a 50-employee manufacturing business in Kitchener-Waterloo with 5+ years of operation and audited financials. You want to add robotics, IoT sensors, or AI-driven quality control to your production line. You have revenue and can match funds, but you have never applied for a government manufacturing grant.
Your best path is Ontario AMIC, which covers up to 15% of eligible advanced manufacturing project costs with a hard deadline of September 23, 2026. You need 10+ FTEs and 3+ years of operation — both of which you meet. The application requires a clear productivity improvement narrative: quantify units-per-hour improvement, defect-rate reduction, or energy consumption savings. Projects with measurable metrics score significantly better. Pair with NRC-IRAP advisory services for the technical narrative — an ITA in the Waterloo Region can help scope the R&D component of your automation project. If you are an automotive supplier, also watch for O-AMP Round 8 (Round 7 closed April 16, 2026). O-AMP explicitly prioritizes AI-enabled solutions and offers up to $150K per project.
Source: AMIC Program Page; O-AMP Program PageYou need 10+ FTEs and 3+ years of operation. The Rural SME stream ($500K max) is less competitive than the strategic stream — apply strategic if your project exceeds that threshold. Source: AMIC Official Page
| Program | Value | Equity? | Cash? | Location |
|---|---|---|---|---|
| Fierce Founders Uplift | $10K non-repayable | No | Yes | Ontario (Communitech, Kitchener) |
| DMZ Incubator | $500K–$1M perks | 2–2.5% | No | Toronto |
| MaRS Capital Program | Up to $500K advisory | No | No | Toronto |
| IO Venture Path | Mentorship + workspace | No | No | Ottawa |
You sell products online from Ottawa and want to expand into US or EU markets. You need funding for marketplace integration, international digital marketing, and website localization. You are incorporated, have a CRA Business Number, and 3+ employees. You are not doing R&D — you are executing a proven business model in new markets.
CanExport SMEs is your best fit. It provides up to $50,000 per project at 50% cost-share for entering new international markets, covering foreign marketplace fees, digital marketing in foreign markets, and website localization. You can receive up to $99,999 per company per fiscal year. Unlike R&D tax credits, CanExport does not require technical uncertainty — it requires export-readiness and a concrete market entry plan. If you are also scaling digital operations domestically, FedDev Ontario BSP (repayable, $500K–$10M) is a secondary option, but only if you have 5+ FTEs, 2+ years of operation, and 50% matched funding. Most Ottawa e-commerce businesses under 10 employees should start with CanExport and grow into BSP later.
Source: CanExport SMEs; FedDev OntarioYou need a CRA Business Number and export-readiness. The maximum is $99,999 per company per fiscal year. Apply through the Trade Commissioner Service portal with a concrete market entry plan. Source: CanExport SMEs Official Page
| Program | Amount | Cost-Share | Type | Best For |
|---|---|---|---|---|
| CanExport SMEs | Up to $50K/project | 50% | Non-repayable | Digital export market entry |
| FedDev BSP | $500K–$10M | 50% matched | Repayable | Scaling digital operations |
| AMIC | Up to $5M | ~15% of costs | Non-repayable grant | Manufacturing digitization |
You identify as a woman or non-binary founder from an equity-deserving group. You have an early-stage tech company in Hamilton with some market validation — paying customers or pilot agreements. You have not raised significant capital and you find most grant programs require matching funds you cannot provide.
Fierce Founders Uplift through Communitech is designed exactly for your situation. It provides $10,000 non-repayable with no matching requirement, specifically for equity-deserving founders who have completed market validation. The program is based in Kitchener-Waterloo but accepts Ontario-wide applicants (majority of spots). If you do not qualify for Fierce Founders, your next step is to evaluate whether your product development involves technical uncertainty. If it does, SR&ED + OITC is accessible regardless of founder demographics — the tax credit system is neutral. If it does not, Ontario's post-CDAP landscape has very few small non-repayable grants for generic digital adoption. Consider municipal Hamilton economic development incentives or the Ontario Trillium Foundation Seed Grant if you operate as a non-profit.
Source: Fierce Founders Uplift; Ontario Trillium Foundation Seed GrantYou must have paying customers or pilot agreements. Applications open periodically at communitech.ca. Two of ten spots are reserved for Canada-wide applicants; the majority are for Ontario founders. Source: Fierce Founders Official Page
You are a GTA-based AI company with $1M+ in revenue, 20+ employees, and a growing R&D team. You are already claiming SR&ED but want to maximize your stack and access larger provincial or federal grants. You have a permanent establishment in Ontario and your taxable capital is under $50M.
Your priority is stacking all three Ontario R&D tax credits with federal SR&ED. The combined incentive rate on eligible Ontario R&D is up to 46.5%: 35% federal SR&ED refundable + 8% OITC refundable + 3.5% ORDTC non-refundable. With the Budget 2025 $6M enhanced limit, a GTA AI company spending $3M annually on eligible R&D receives approximately $1.395M in refundable credits per year. Beyond tax credits, if you have a strong industry partner, OVIN Stream 2 offers up to $1M with 33–50% co-investment for EV, connected, or autonomous vehicle AI applications. For health AI, HTAF funds $1.5M–$5M per project but purchases through health service providers, not direct company funding. For general AI scale-up, FedDev BSP provides up to $10M in repayable contributions if you have a credible growth plan and matched funding.
Source: CRA SR&ED; OITC; OVIN; FedDev OntarioA GTA AI company spending $3M annually on eligible R&D receives approximately $1.395M in refundable credits. The ORDTC adds a further 3.5% non-refundable credit for profitable years. Source: CRA SR&ED; OITC; ORDTC
| Program | Type | Timing | Application | Stackable? |
|---|---|---|---|---|
| Federal SR&ED | Tax credit | Annual T2 filing | Retrospective (Form T661) | Yes — with OITC, ORDTC, OIDMTC |
| Ontario Innovation Tax Credit (OITC) | Tax credit | Annual T2 filing | Retrospective (with T661) | Yes — with SR&ED and ORDTC |
| NRC IRAP | Non-repayable grant | Rolling | Prospective via ITA | Yes — reduces SR&ED claimable base |
| Ontario AMIC | Grant | Deadline Sept 23, 2026 | Prospective application | Yes — with disclosure |
CDAP ended in spring 2025 with no direct replacement. The Canada Digital Adoption Program, which provided $15,000 grants to over 90,000 Canadian businesses, officially wound down. No federal successor has been announced. Ontario businesses previously relying on CDAP must now navigate programs with higher barriers but larger ceilings — primarily through SR&ED tax credits, FedDev Ontario, and OCI channels.
Budget 2025 raised the SR&ED enhanced expenditure limit directly from $3M to $6M. The enhanced 35% refundable ITC for CCPCs now applies on up to $6M in qualified SR&ED expenditures — maximum enhanced credit is $2.1M/year, up from $1.05M. For Ontario digital companies spending $3M–$6M annually on R&D, this is a material cash-flow improvement. There was no intermediate $4M step. Source: CRA SR&ED — Budget 2025 Amendments
Ontario Interactive Digital Media Tax Credit (OIDMTC) remains at 40% for original IP with no cap. The 2025 Ontario budget clarified eligibility for cross-platform content including web, mobile, and XR. Ontario studios and digital media teams creating qualifying interactive content can stack OIDMTC with SR&ED for eligible R&D work on the same products. The 40% rate for original IP and 35% for fee-for-service work are unchanged. Source: Ontario Creates OIDMTC
FedDev Ontario launched the Regional Tariff Response Initiative non-repayable stream. Created in response to 2025 US tariffs, the non-repayable RTRI stream offers $125K–$1M for tariff-impacted businesses in southern Ontario. Rolling intake continues until funds are exhausted. Steel and automotive supply chain companies receive priority. Applicants must explicitly select "Non-repayable RTRI" on the form — failure to specify defaults to repayable assessment. Source: FedDev Ontario RTRI
Ontario Automotive Modernization Program (O-AMP) Round 7 closed April 16, 2026; Round 8 timing is TBD. Round 7 explicitly prioritized AI-enabled solutions — predictive maintenance, quality control, and production optimization. Ontario automotive suppliers should prepare now for Round 8 by documenting 30%+ automotive revenue and gathering 2+ years of audited financials. The 30% threshold is strictly enforced. Source: O-AMP Program Page
Ontario Advanced Manufacturing and Innovation Competitiveness (AMIC) deadline is September 23, 2026. This is a hard deadline for the current intake cycle. Projects that clearly demonstrate productivity improvement metrics — units per hour, defect rates, energy consumption — score significantly better. Rural SME stream ($500K max) and strategic stream (up to $5M) run concurrently. Source: AMIC Program Page
| Program | Incorporation Required? | Matching Funds? | Key Document | Timing |
|---|---|---|---|---|
| OITC | Yes | No | Form T661 + T2 return | Annual (within 18 months) |
| OIDMTC | Yes | No | Ontario Creates cert + T2 | Annual tax filing |
| AMIC | Yes | Yes (~85% applicant) | Growth plan + financials | Deadline Sept 23, 2026 |
| RTRI Non-Repayable | Yes | Yes (50%) | 3-year operation proof | Rolling until exhausted |
| Fierce Founders | No | No | Market validation proof | Cohort-based |
Toronto and the Greater Toronto Area host the largest concentration of tech startups, scale-ups, and venture capital in Canada. MaRS Discovery District, the DMZ at Toronto Metropolitan University, and the Ontario Centre of Innovation (OCI) serve as the primary innovation infrastructure for GTA companies. Communitech — headquartered in Kitchener-Waterloo — supports the Waterloo Region's dense startup ecosystem, including the University of Waterloo and Wilfrid Laurier University, making OCI partnership applications particularly accessible for local firms. Waterloo Region manufacturers benefit from proximity to both academic research and FedDev Ontario's southern Ontario eligibility zone.
Ottawa — home to Invest Ottawa and the federal government technology ecosystem — is the strongest location for companies seeking defence and security-adjacent digital contracts. Hamilton and London have emerging tech corridors with lower competition for regional program attention than Toronto. Windsor and Mississauga host significant advanced manufacturing and automotive supply chain operations, making AMIC and O-AMP applications natural fits. Brampton has a growing logistics and e-commerce sector that benefits from CanExport SMEs for international marketplace expansion.
In Eastern Ontario, the Ontario Ministry of Economic Development, Job Creation and Trade administers provincial programs, while the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) handles federal economic development for the 37 census divisions south of the Canadian Shield. Northern Ontario businesses access digital innovation funding through the Northern Ontario Heritage Fund Corporation (NOHFC) and FedNor, with the Ontario Ministry of Agriculture, Food and Agribusiness supporting rural digitization. Invest Ontario promotes the province's tech sector internationally, while Ontario Centre of Innovation (OCI) remains the province's primary innovation agency connecting industry with research institutions across all regions.
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