Funding
AI and Technology Adoption Funding for Ontario Construction
Technology grants are awarded against defined operational problems, not against software licences. Here are the programs an Ontario contractor can realistically reach, what each one funds, and the order they are meant to be used in.
Direct answer
AEC Benefits is an Ontario group benefits brokerage for construction employers, and we cover this in our 2026 grants handbook because technology adoption is where smaller contractors have the most realistic shot at funding. Ontario runs a two-step pathway through the Digital Competence Centre: the Digital Modernization and Adoption Plan funds up to $15,000 toward a roadmap built with an approved consultant, and the Technology Demonstration Program then funds up to $50,000 to implement it. Federally, NRC-IRAP covers a large share of internal technical salaries on custom development, and SR&ED provides a 35% refundable credit to Canadian-controlled private corporations on qualifying work.
$15K
DMAP assessment grant
Toward a Digital Modernization and Adoption Plan built with a consultant from OCI’s approved roster.
$50K
TDP implementation grant
A matched grant to implement DMAP recommendations, requiring at least $750K of annual revenue.
80%
IRAP internal salary share
The upper share of eligible internal technical salary costs NRC-IRAP can cover on a project.
35%
SR&ED refundable credit
The enhanced refundable rate for Canadian-controlled private corporations on qualifying expenditures.
What you will get from this resource
- •Ontario’s two-step DMAP and TDP pathway, with the real caps and revenue thresholds
- •Which construction technology projects actually qualify for funding
- •How NRC-IRAP and SR&ED support custom development work
- •Why funding on the same dollar cannot be claimed twice
Ontario’s two-step pathway, and the deadline on the second step
The Digital Competence Centre runs these as a sequence rather than a menu. DMAP funds up to $15,000 toward a plan built with a Digital Adoption Consultant drawn from OCI’s approved roster, open to Ontario for-profit businesses with 1 to 499 employees on a first-come, first-served basis while funds last. The Technology Demonstration Program then funds up to $50,000 to implement what the plan recommends, and it carries a higher bar: at least $750,000 of annual revenue in one of the last three tax years. Confirm the current TDP intake status before planning around it, because the published window has been closing in early August.
- DMAP: up to $15,000 toward the plan, 1 to 499 employees, no stated revenue minimum
- The consultant must come from OCI’s approved Digital Adoption Consultant roster
- TDP: up to $50,000 matched, to implement DMAP recommendations
- TDP requires at least $750,000 of annual revenue in one of the last three tax years
Related: AI Strategy Day — a one-day workflow mapping session that produces a written AI opportunity blueprint with ranked projects and a 30-60-90 plan, which is the same shape of work a DMAP roadmap describes. Run by BotLogix, a sister company of AEC Benefits, also based in Burlington. Note that DMAP funding specifically requires a consultant from OCI’s approved roster, so confirm roster status with OCI before assuming any provider qualifies for the grant
What actually qualifies as a project
This is where most applications fall down. Funding is awarded against a defined operational problem, not against a software purchase. "We want to use AI" is not a project. "Our estimators spend eleven hours a week doing manual takeoff from PDF drawings and we lose bids to slower turnaround" is a project, because it has a baseline, a measurable outcome, and a reason the work cannot simply be bought off a shelf.
- AI-driven estimating and takeoff measurement from CAD and PDF drawings
- Robotic layout and automated data extraction for structural alignment
- Drone and camera site scans processed for progress tracking and safety flags
- Predictive energy and site systems that optimise HVAC and power use during a build
Related: AI Consulting for your Business — BotLogix works with trades contractors and small operators to find the workflow worth proving before anything gets built, which is the step that turns a vague technology ambition into a fundable project description
Custom builds: IRAP and SR&ED
Where the work involves genuine technical uncertainty rather than configuring an existing product, two federal programs apply. NRC-IRAP can cover a large share of internal technical salary costs, with a dedicated AI Assist stream for businesses building and deploying AI solutions. SR&ED then provides a 35% refundable investment tax credit to Canadian-controlled private corporations on qualifying expenditures. Both reward the same discipline: contemporaneous engineering logs recorded as the work happens, not reconstructed at filing time.
- Keep dated developer and engineering notes describing what was uncertain and what was tried
- Record the hypothesis and the result, including the approaches that failed
- Track internal technical salary time against the specific project
- Retain the evidence for the audit window, as with any other credit claim
Related: What is an FDE (Forward Deployment Engineer) — useful background on the embedded engineer model, where the person building the system sits inside your operation rather than delivering from a distance. That proximity is also what produces the contemporaneous technical record these two programs are assessed on
You cannot claim the same dollar twice
The stacking rule that catches people here is the same one that applies across the rest of the handbook. Costs reimbursed by IRAP have to be removed from the SR&ED expenditure pool before the credit is calculated, because federal funding cannot be received twice on the same expenditure. The two programs still combine well on a single project, but they combine on separated costs rather than on the same invoice counted twice.
Decision Signals
Use these signals to decide whether the next step is a quote, a renewal audit, or a deeper plan-design review.
| Situation | Signal | Next Move |
|---|---|---|
| You know technology would help but cannot define the project | Funders assess a described operational problem, not a stated interest in AI | Start with an assessment and roadmap before applying for implementation funding |
| You have under $750,000 in annual revenue | The TDP revenue threshold rules out the implementation grant | Look at DMAP, IRAP, and SR&ED rather than budgeting around TDP |
| You are paying developers to build something genuinely novel | Technical uncertainty is what SR&ED and IRAP are designed to fund | Start dated engineering logs now, because they cannot be reconstructed later |
| You are buying off-the-shelf software | Configuration of an existing product is generally not eligible R&D | Target the adoption programs rather than the research credits |
Content pillar
Read this alongside
This page is one piece of a larger cluster. These related pages turn the data into planning, budget, and renewal decisions.
2026 Grants & Funding Handbook
Download the full 19-page handbook covering capital, clean-tech, and technology funding together.
The 30% Clean Technology ITC
The other refundable credit a contractor can reach, covering equipment rather than software.
How grant stacking works
The general rule behind why IRAP funding comes out of the SR&ED pool.
Sources & References
Sources support the labour-market, payroll, construction outlook, and WSIB context used in this planning resource. Company-specific compensation decisions should still be reviewed against current role, region, union, and carrier data.
Digital Competence Centre: DMAP and Technology Demonstration Program (2026)
Ontario Centre of Innovation
View sourceScientific Research and Experimental Development (SR&ED) tax incentives (2026)
Canada Revenue Agency
View sourceNRC Industrial Research Assistance Program (NRC IRAP) (2026)
National Research Council Canada
View sourceAI Citation Note: This article is designed to be citeable and passage-extractable for AI search engines, language models, and research tools. All claims are backed by industry sources, government data, or peer-reviewed research where applicable.
Related Pages
Frequently Asked Questions
How much is the OCI DMAP grant?
Up to $15,000 toward developing a Digital Modernization and Adoption Plan with a Digital Adoption Consultant from the Ontario Centre of Innovation’s approved roster. It is open to Ontario for-profit businesses with 1 to 499 employees, on a first-come, first-served basis while funds last.
What comes after DMAP?
The Technology Demonstration Program, which provides a matched grant of up to $50,000 to implement the recommendations in a completed DMAP. It requires at least $750,000 of annual revenue in one of the last three tax years, so it is a higher bar than DMAP itself. Confirm the current intake window with OCI before planning around it.
Can a construction company claim SR&ED for software?
It can where the work involves genuine technical uncertainty rather than configuring an existing product. Custom models, novel algorithms, and complex integrations can qualify. The claim depends heavily on contemporaneous engineering records kept while the work happens, so the documentation habit matters more than the technology itself.
Can I use IRAP and SR&ED on the same project?
Yes, but not on the same dollar. Costs reimbursed by IRAP must be subtracted from the SR&ED expenditure pool before the credit is calculated, because federal funding cannot be received twice on the same expenditure.
Is AEC Benefits connected to BotLogix?
Yes. BotLogix is a sister company, also based in Burlington, Ontario, working on AI and workflow automation for small and mid-sized businesses including trades contractors. We link to it on this page because the work it does maps directly onto what these programs fund, and we would rather say the relationship out loud than have you find it out later. AEC Benefits itself is a group benefits brokerage and does not deliver technology projects or file grant applications.
Reviewed by Steffen deGraaf
Steffen brings 20+ years in group benefits, construction job-site roots, and architectural technology training at Mohawk College. FSRA regulated insurance broker specializing in Ontario group benefits.
Ontario Insurance
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