Quebec Digital Transformation Grants 2026

Post-CDAP guide to 9 digital transformation programs for Quebec businesses. NRC IRAP (bilingual advisors in Montreal), SR&ED with Budget 2025 $6M expansion, Quebec IDMTC (37.5% refundable), MEI programs, and CED Quebec Regional Development.

9Programs
QCProvince
37.5%IDMTC refundable
$6MSR&ED limit (2025)

Quebec Digital Funding in 2026: Post-CDAP Landscape

The Canada Digital Adoption Program (CDAP) officially wound down in spring 2025, closing the easiest $15K adoption grant channel for Quebec businesses. The programs that remain require more effort — but most are larger and more impactful than CDAP's ceiling. Quebec businesses have a distinctive advantage: bilingual federal channels (IRAP, CED Quebec, SWPP) plus a rich provincial ecosystem (MEI, Investissement Québec, IDMTC, Crédit d'impôt pour la R&D) that other provinces lack.

This guide covers the 9 active digital transformation programs Quebec businesses should evaluate in 2026 — with honest classification of grants versus loans versus tax credits. For the biggest 2026 change, see What's Changed for Quebec Digital Funding in 2026.

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Available Programs (9)

Industrial Research Assistance Program (IRAP) — Quebec

Organization: National Research Council Canada

Level: federal

Amount: Up to $10 million

Canada's largest non-repayable R&D program, with bilingual Industrial Technology Advisors (ITAs) based in Montreal, Quebec City, Sherbrooke, and Gatineau. Funds technical uncertainty — building custom AI, ML, IoT, or proprietary data infrastructure. Strongest CDAP replacement for Quebec companies doing genuine digital innovation. Applications in French or English.

Digital R&DAI / MLBilingual
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Quebec Interactive Digital Media Tax Credit (IDMTC)

Organization: Revenu Québec / Investissement Québec

Level: provincial

Amount: 37.5% refundable on eligible wages

Quebec-exclusive refundable tax credit for digital media content producers — games, interactive entertainment, educational software, XR applications. Up to 37.5% of eligible labour costs refundable. Quebec's game industry (Ubisoft, Ludia, Behaviour) relies heavily on IDMTC. Montreal and Quebec City are the primary beneficiary cities. Stacks with federal SR&ED for R&D portions.

Digital MediaGamingRefundable Tax Credit
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CED Quebec REGI Business Scale-up

Organization: Canada Economic Development for Quebec Regions

Level: federal

Amount: $150,000 – $1,000,000 (repayable)

Quebec-exclusive federal program for scaling digital operations. Repayable contributions for Quebec firms enhancing digital productivity, entering new markets, or technology adoption. Strong alternative to CDAP for established Quebec businesses with revenue track record. Applications bilingual, often decided in 8–12 weeks.

Digital Scale-upQuebec-onlyRepayable
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Scale AI Acceleration / Training (Montreal)

Organization: Scale AI — Canada's AI Global Innovation Cluster

Level: federal

Amount: $37,500 – $5 million

Scale AI is headquartered in Montreal and is the federal Global Innovation Cluster focused on AI supply-chain applications. Investment Voucher ($37.5K), Acceleration ($500K), and Mission Critical ($5M+) tracks. Quebec AI companies — particularly those integrating AI into manufacturing, retail, or logistics — are priority applicants. Bilingual intake.

AI / MLGlobal Innovation ClusterMontreal HQ
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Investissement Québec — Programme d'innovation

Organization: Investissement Québec / MEI

Level: provincial

Amount: Varies (grants, loans, equity)

Quebec's provincial innovation funding arm offers grants, loans, and equity for Quebec-incorporated digital companies. MEI's Programme d'innovation covers R&D acceleration, technology adoption, and Industry 4.0 transformations. Accessible to Quebec startups through SMEs. Particularly strong for AI, life sciences, and clean tech in Québec Innovation Districts (Montreal, Quebec City, Sherbrooke).

Quebec InnovationR&D / Industry 4.0MEI
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Canada Media Fund

Organization: Canada Media Fund

Level: federal

Amount: Varies (grant or recoupable investment)

Supports the creation of Canadian content in television, digital media and interactive platforms through various funding streams (development, production, marketing).

Media ProductionCanadian ContentDigital Media
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Telefilm Canada Funding Programs

Organization: Telefilm Canada

Level: federal

Amount: Varies

Supports the Canadian audiovisual industry through investments and funding for film, television, and digital media projects (production, development, marketing funds).

Film ProductionTelevisionAudiovisual Content
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Skills for Success Program

Organization: Employment and Social Development Canada

Level: federal

Amount: Up to $5 million

Supports the development of foundational and transferable skills (like literacy, numeracy, digital skills) for Canadians through funding to organizations that deliver training and upskilling projects.

Skills TrainingWorkforce DevelopmentEducation
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Digital Skills for Youth Program

Organization: Innovation, Science and Economic Development Canada

Level: federal

Amount: Up to $15,000 per participant (wage subsidy)

Provides funding to organizations to create internships that offer underemployed youth training and work experience in digital skills, helping them transition to careers in the digital economy.

Digital SkillsYouth TrainingTechnology Careers
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What's Changed for Quebec Digital Funding in 2026

A year after CDAP ended, Quebec's digital funding landscape has shifted toward larger programs with distinctive bilingual and provincial advantages. These are the 2026 updates that matter most.

SR&ED expenditure limit raised from $3M to $6M (Budget 2025). Federal Budget 2025 doubled the enhanced SR&ED refund ceiling for CCPCs from $3M to $6M. Paired with Quebec's Crédit d'impôt pour la R&D salariale (14-24% refundable depending on corporation size), the combined effective refund on qualifying R&D can reach 65%+ for Quebec SMEs — among the highest effective rates in North America. Montreal AI, fintech, and gaming companies are the largest users. Source: Department of Finance Canada, Budget 2025 SR&ED measures (April 2025); Revenu Québec, Crédit d'impôt R&D salariale.

AI Compute Access Fund launched, with Montreal a primary beneficiary. ISED began deploying the $2B AI Compute Access Fund (Budget 2024) throughout 2025-2026. Quebec AI companies — particularly those connected to Mila, IVADO, and the Montreal AI ecosystem — have been major early beneficiaries. Applications continuous through ISED's Pan-Canadian AI Strategy channel. Particularly valuable for Quebec generative AI, foundation model, and AI infrastructure startups. Source: Innovation, Science and Economic Development Canada, AI Compute Access Fund.

Scale AI received $125M Budget 2025 renewal through 2028. Scale AI (Canada's AI Global Innovation Cluster, headquartered in Montreal) received a renewed federal commitment through 2028. Investment Voucher ($37.5K), Acceleration ($500K), and Mission Critical ($5M+) tracks continue with expanded eligibility for supply-chain AI, logistics AI, and retail AI applications. Quebec continues to be the center of gravity for Scale AI funding. Source: Innovation, Science and Economic Development Canada, Global Innovation Clusters renewal announcement (2023/2025).

Quebec IDMTC remains at 37.5% refundable, with XR eligibility clarified. The Quebec Interactive Digital Media Tax Credit was confirmed at 37.5% refundable on eligible labour in Budget 2025-26 for qualifying interactive digital media. The 2025 update clarified eligibility for extended reality (XR, VR, AR) content, cross-platform interactive educational media, and digital children's content. Quebec's game industry (Montreal, Quebec City, Sherbrooke) and interactive media sector remain the primary beneficiaries. Source: Revenu Québec and Investissement Québec, IDMTC program updates 2025-26.

CED Quebec Regional Development: REGI priorities shifted toward AI and biotech. Canada Economic Development for Quebec Regions (CED) announced Q4 2025 that REGI and QEDP priority sectors have been adjusted for 2026-2028 to emphasize AI/ML applications, biomanufacturing, and clean technology — reflecting Quebec's Strategic Industrial Policy. Quebec digital businesses in these sectors have improved approval odds. Source: Canada Economic Development for Quebec Regions, REGI program priority updates 2025.

Strategic Response Fund replaces SIF for large-scale Quebec digital projects. Budget 2025 allocated $16B over 5 years to the Strategic Response Fund, replacing the Strategic Innovation Fund for new commitments. Quebec's large digital anchors (Bombardier digital transformation, Ubisoft AI R&D, Alimentation Couche-Tard digital platforms) with $10M+ projects should target SRF for 2026-2028. First SRF intake expected Q3 2026. Source: Government of Canada, Budget 2025 Strategic Response Fund announcement (April 2025).

CDAP legacy: no direct replacement, but rich provincial alternatives. Unlike other provinces where municipal BIA programs absorbed CDAP functions, Quebec's distinct advantage is its rich MEI and Investissement Québec ecosystem. Quebec businesses seeking the type of simple adoption grant CDAP provided should check MEI's Programme d'aide aux entreprises (PAFE) and regional Centres locaux de développement (CLDs) — these provincial channels genuinely don't exist at the same scale elsewhere in Canada. Source: Innovation, Science and Economic Development Canada, CDAP program wind-down summary (Spring 2025).

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