Funding for AI and software projects in Canada
As of 4 November 2026, three federal programs can pay part of an AI or software project: RAII, NRC IRAP and the SR&ED tax credit. CanExport Innovation opens a round on 1 December. The business applies in its own name; INNOVA Consult, in Ottawa, scopes and builds the work the program pays for.
Northstar Professional Services is a fictional 30-person firm. Every number is what the engine computes for it.
The programs, side by side
Status on 4 November 2026
| Program | Who it is for | Status | What it pays | What INNOVA does |
|---|---|---|---|---|
| RAII, southern Ontario FedDev Ontario | Businesses in southern Ontario, including Ottawa, that adopt or commercialize AI. | Open until 19 January 2027. Projects whose costs start before 31 March 2027 apply by 24 November 2026. | A repayable, interest-free contribution of $125,000 to $5 million, up to 50% of eligible costs. | Maps and scores the process, writes the technical scope and cost estimate, builds and measures. |
| RAII, Quebec CED Québec (DEC) | Quebec SMEs ready to adopt AI, AI start-ups and the non-profits that support them. | Accepting applications. Costs count from the day the application is submitted. | For SMEs, repayable support of up to 50% of authorized costs. | The same work as in Ontario, for a business that applies to CED. |
| RAII, northern Ontario FedNor | Incorporated SMEs and Indigenous-led businesses in northern Ontario; retail and service businesses are not considered. | Applications are assessed as they are received, while funding lasts. | Normally repayable; all government funding is capped at 50% of eligible capital costs and 75% of other eligible costs. | The same adoption work, scoped to FedNor’s rules. |
| NRC IRAP National Research Council Canada | Incorporated, for-profit businesses in Canada with up to 500 employees that develop technology-driven products. | Ongoing. The first step is a call to NRC IRAP, then a meeting with an industrial technology advisor. | Advice and, in some cases, funding for the R&D of a technology-driven product or service. | Builds the software side of the R&D and keeps the technical record. |
| IRAP AI Assist NRC IRAP | Firms that develop and adapt generative AI and deep learning solutions. | NRC’s 2026–27 plan says it will continue in 2026–27. | Contributions to the firm’s AI development project. | Builds and tests the AI components with the firm’s own data. |
| CanExport SMEs Trade Commissioner Service | Canadian SMEs with a plan to sell in a new export market. | Closed. The 2026–27 intake has been processed; the next intake is not announced. | Up to $50,000 per project for international business development. | Plans and runs market entry work for Latin America. |
| CanExport Innovation Trade Commissioner Service | SMEs, universities and research centres setting up an R&D partnership with a foreign partner. | The next round opens on 1 December at noon Eastern, for 24 hours. | Up to 75% of eligible costs, at most $37,500 per project, until the partnership is signed. | Builds the software side of the R&D once the partnership is signed. |
| SR&ED tax credit Canada Revenue Agency | Businesses that do experimental development in Canada. | Claimed for each tax year. | Most CCPCs: a 35% credit on qualified spending up to $6 million a year, fully refundable on current expenditures; 15% above the limit. | Keeps the technical record during the build. The client’s accountant or SR&ED preparer files the claim. |
| Canada Digital Adoption Program ISED | Small businesses adopting digital technology. | Ended on 31 March 2025. | The program has concluded and takes no new applications. | For AI adoption, RAII is the open federal program. |
Which program fits
Adopting AI in an established business
In southern Ontario, the RAII adoption stream fits a business with at least three years of operations and 5 to fewer than 500 full-time equivalent employees. In Quebec, CED takes RAII applications from SMEs ready to adopt AI.
Solving a technical problem in a product
NRC IRAP works with incorporated, for-profit businesses of up to 500 employees that develop technology-driven products and services. The first step is a call to NRC IRAP.
Selling into a new export market
CanExport SMEs pays up to $50,000 per project for international business development; its 2026–27 intake is closed. CanExport Innovation pays part of the cost of setting up an R&D partnership with a foreign partner.
Doing experimental development
SR&ED gives most Canadian-controlled private corporations a 35% credit on qualified spending, fully refundable on current expenditures, up to $6 million a year for tax years beginning after 15 December 2024. The client’s accountant or SR&ED preparer files the claim.
Inside a funded project
INNOVA Consult
- Check the project against the program’s published criteria.
- Map and score the process, or write down the technical question.
- Write the technical scope, the milestones and the cost estimate.
- Build it, with tests and a person approving what needs approval.
- Measure the result and keep the technical record.
The business
- Applies in its own name.
- Names the consultants it works with where the program asks for them.
- Keeps the financial records and reports as its agreement requires.
Maksym Stepanenko leads and does the work; specialist contractors are brought in when a project needs them.
Questions about funding
Is there still a digital adoption grant in Canada?
The Canada Digital Adoption Program ended on 31 March 2025. For AI adoption, the Regional Artificial Intelligence Initiative is open in southern Ontario until 19 January 2027 and accepts applications in Quebec. Its support to businesses is repayable.
Which program pays for AI adoption in Ontario?
The Regional Artificial Intelligence Initiative. FedDev Ontario runs it in southern Ontario, including Ottawa: repayable, interest-free contributions of $125,000 to $5 million, up to 50% of eligible costs. In northern Ontario, FedNor runs it and assesses applications as they arrive.
Which program pays for AI adoption in Quebec?
The Regional Artificial Intelligence Initiative, run in Quebec by CED. It accepts applications from SMEs ready to adopt AI and gives them repayable support of up to 50% of authorized costs. Costs count from the day the application is submitted.
Does RAII pay for preparing the application?
In southern Ontario, no: FedDev Ontario states that costs related to preparing an application cannot be reimbursed. INNOVA’s part of a funded project is the scoped work that follows: the build, its tests and the measured result.
Can SR&ED and RAII cover the same costs?
FedDev Ontario counts SR&ED tax incentives as other government assistance and asks applicants to leave SR&ED-eligible costs out of an RAII application when possible. Decide which costs go to which program before either one is written.
Is CanExport open?
As of 4 November 2026, CanExport SMEs is closed: all applications for the 2026–27 intake have been processed and the next intake is not announced. CanExport Innovation opens its next round on 1 December at noon Eastern, for 24 hours.
Does INNOVA guarantee funding?
No. Each program decides on its own criteria and budget. INNOVA scopes the project against the published criteria, writes the technical parts the business needs, and builds the work once the project goes ahead.
What does INNOVA charge?
Each quote is built from the scoped work and sent in writing before anything starts. Send a short description of the project and the program you have in mind; the reply says what the scope would cover.
Tell us which program you have in mind and what the project should change.
Maksym Stepanenko, founder, in business since 2012. Products in public use, one of them in the App Store.