Top Montreal Software Development Grants, Tax Credits, and Loans

Unlocking financial support can be a game-changer for software development companies in Montreal.  

With a variety of government grants, tax credits, and loans available, businesses have numerous opportunities to fuel their growth and innovation. This blog delves into the top government funding programs tailored for Montreal’s software development sector. 

Government Grants and Loans for Montreal Software Development  

CanExport – PME  

The CanExport – PME program can help Montreal businesses expand into international markets by offsetting export marketing costs. This funding is particularly beneficial for small and medium-sized enterprises (SMEs).   

Eligible businesses can access funding for up to 50% of eligible costs, with a maximum of $50,000 per project.    

Timeline:   

• Applications are accepted year-round but must be submitted at least 60 days before incurring any eligible expenses.  

Eligibility Criteria:  

• SMEs with 1–499 employees  
• Minimum annual revenue of $100,000 and maximum of $100 million 
• Projects that focus on new export market activities, such as trade shows, marketing campaigns, or market research 

CED Business Scale-Up and Productivity (BSP) for Québec 

Delivered by Canada Economic Development (CED), this program provides financial support to businesses seeking to scale up and increase productivity through investments in technology, equipment, and process optimization.   

Eligible businesses can access up to 50% of eligible project costs.    

Timeline:   

• Applications are ongoing. It’s advisable to apply early, as funding is limited.  

Eligibility Criteria:  

• Businesses must operate in Québec and demonstrate growth potential.  
• Projects should focus on scaling operations, adopting advanced technologies, or improving productivity. 

MFOR 100 K$ et plus – Les Projets de formation d’envergure  

This program supports large-scale training projects aimed at developing workforce skills, particularly in high-demand industries. Designed for medium and large organizations, this grant enables businesses to create tailored training initiatives for employees.  

Timeline:   

• Applications are open year-round. Businesses should apply early to secure funding for their planned training projects.  

Eligibility Criteria:  

• Businesses must operate in Québec. 
• The project budget must be upwards of $150,000 CAD.  
• Projects should focus on upskilling or reskilling employees.  
• Collaboration with recognized training providers is recommended. 

Primo-Adoptant  

The Primo-Adoptant program helps tech startups collaborate with incubators or accelerators to bring their innovations to market. This program encourages the adoption of new technologies by fostering collaboration.  

Eligible businesses can access funding that covers up to 60% of eligible costs, with a maximum of $75,000.    

Timeline:   

• Applications are open year-round.  

Eligibility Criteria:  

• Startups must be based in Québec.   

• Collaboration with a recognized incubator or accelerator is required. 

Prompt – Partenar-IA for AI Projects  

Prompt’s Partenar-IA program supports collaborative artificial intelligence (AI) projects involving SMEs and large corporations. The program’s goal is to advance AI technologies through partnerships, increasing the technology readiness level (TRL) of AI solutions.  

Eligible businesses can access funding that covers 50% of eligible costs, up to $1.5 million.   

Timeline:   

• Applications are reviewed in cycles. Check Prompt’s website for submission deadlines.  

Eligibility Criteria:  

• Projects must involve a partnership between at least one SME and a large corporation. 

• Focus areas include developing and advancing AI technologies.  

 Regional Artificial Intelligence Initiative (RAII) 

The RAII program, also delivered by CED, supports regional economic development by funding innovative projects. With a total budget of $38.2 million, this program aims to drive growth in Québec’s industries.   

Eligible businesses can access funding that covers up to 50% of eligible costs, with the possibility of loans and/or grants depending on the project’s scope.    

Timeline:   

• Applications are open throughout the year, with decisions typically made within 60 days.  

Eligibility Criteria:  

• Businesses must operate in regional areas of Québec.  
• Projects must demonstrate innovation and economic benefits for the region. 

SWPP – for Co-op Hires  

The Student Work Placement Program (SWPP) supports businesses hiring students through co-op placements. It’s a fantastic opportunity to bring fresh talent into your organization while receiving financial support.   

The subsidy provided is up to $7,000 per student.    

Timeline:   

• Funding is available on a rolling basis, but businesses should align their applications with academic semesters for optimal placement opportunities.  

Eligibility Criteria:  

• Businesses must hire students in co-op or work-integrated learning positions.  
• The position must provide meaningful and relevant work experience.  
• Eligible employers must be one of the following: a private company, non-profit, or post-secondary institution.  

Tax Credits for Montreal Software Development  

In addition to government grants and loans, Montreal’s software development businesses can benefit from several tax credit programs designed to reduce operational costs and encourage growth:  

E-Business Tax Credit  

Designed to support the software and IT industries, this program provides a tax credit of 30% of eligible labour costs for companies developing or integrating e-business systems such as management software and transactional platforms. 

Design Tax Credit  

The Design Tax Credit supports industrial manufacturing companies in the fashion and industrial design sector. Product design, whether it be apparel or furniture, requires employing fashion or industrial designers, graphic designers, and pattern makers. This program provides a tax credit of up to 24% for eligible design activities of manufactured goods. 

Multimedia Tax Credit  

This tax credit supports the development of multimedia titles, including video games and web applications. Eligible businesses can claim up to 37.5% of labour costs associated with production activities.  

Scientific Research and Experimental Development (SR&ED) 

The Scientific Research and Experimental Development (SR&ED) tax credit is the largest single source of Canadian federal government support that incentivizes business-led research and development projects. The SR&ED program provides more than $3 billion in tax incentives to over 20,000 claimants annually.  

A SR&ED tax credit may be allotted for up to 69% of labour and overhead costs, 36% of contractor costs, and 45% of material costs. Please note that there are provincial variants of this program SR&ED applicants should explore.  

Timeline:  

The reporting deadline for this program is 18 months from the end of the tax year in which the qualifying expenses were incurred.  

To learn more about the SR&ED program, visit our comprehensive Scientific Research and Experimental Development (SR&ED) program page.  

Eligibility Criteria:    

• Applicants must be conducting basic research, applied research, or experimental development in Canada. They must also be developing new products or processes or making incremental improvements.  
• Eligible expenditures include labour, contractors, materials, and overhead costs that directly relate to and commensurate with the needs of the activity required to attempt to resolve the technological uncertainty, obstacle, or challenge. 

Government Funding Support for Montreal Software Development Businesses 

Navigating grants, loans, and tax credits may seem complex, but these government funding programs present substantial opportunities for Montreal’s software developers.  

By strategically leveraging available financial support, businesses can significantly enhance innovation, expand operations, and strengthen their competitive advantage in the rapidly evolving tech landscape. 

Stay informed and strategically plan your funding approach to maximize your business potential in 2025 and beyond by signing up for one of our upcoming events.