Software, SaaS & AI
Turn Your Hardest Technical Problems Into Non-Dilutive Capital
For Ontario software and IT firms, SR&ED is more than a tax credit. It is a strategic engine for scaling: Canada's largest source of federal R&D support, paying out over $4 billion every year. If your team is solving genuine technical uncertainty, Innovotis turns that work into refundable cash that extends your runway, funds senior talent, and lets you grow without giving up a single point of equity.
Why It Matters
How SR&ED creates value for software & it
Recover Up to ~64% of R&D Wages
Combining the 35% federal refundable credit with Ontario's incentives, eligible R&D salaries return roughly $60,000+ in cash for every $100,000 spent. That is real runway, not a future deduction.
Scale Without Dilution
SR&ED is non-dilutive funding. You extend runway and hire senior developers and data scientists without giving up equity or taking on high-interest debt to do it.
The Government Co-Invests in Your Risk
SR&ED rewards the attempt, not just the outcome. The CRA effectively co-invests in your most ambitious, high-risk engineering work, whether the project ultimately succeeds or fails.
Cash Now, Not in 12 Months
Credits are valuable but the CRA takes time. Innovotis bridges your approved refund with financing at competitive rates, so you can reinvest in the product now instead of waiting two quarters.
2026 Incentives
The credits you can stack
| Incentive | Rate | Detail |
|---|---|---|
| Federal Enhanced ITC | 35% | Refundable for CCPCs on the first $6M of eligible spend, raised from $3M in 2026. |
| Ontario Innovation Tax Credit (OITC) | 8% | Refundable credit aimed specifically at small and medium-sized Ontario businesses. |
| Ontario R&D Tax Credit (ORDTC) | 3.5% | Non-refundable credit that offsets Ontario provincial taxes payable. |
Returned in combined credits for every $100,000 of eligible R&D salary
Eligibility
What qualifies in software & it
If your team is resolving genuine technological uncertainty, this work likely counts. Here's what we typically see qualify.
Architectural Challenges
Building highly scalable distributed systems, novel API integrations, or data architectures where off-the-shelf patterns and documentation could not tell you whether your approach would work.
AI & Machine Learning
Developing custom algorithms and models where existing libraries and frameworks fall short, and the path from problem to working solution was genuinely uncertain.
Cybersecurity
Creating new encryption methods, advanced threat detection protocols, or security approaches that go beyond applying known, documented techniques.
Performance Optimization
Solving stubborn latency or throughput problems that demanded experimentation and iteration rather than routine coding or standard tuning.
Systems Integration & Scaling
Engineering work to make incompatible systems interoperate, or to push a platform far past its tested limits, where the outcome was not obvious from the start.
What Our Clients Say
Results in Software & IT
The Innovotis team quickly understood our technology roadmap and identified SR&ED-eligible activities that previous advisors had missed. Their collaborative approach and deep technical knowledge gave us confidence throughout the process. The funding we recovered enabled us to expand our engineering team and accelerate product development. We highly recommend Innovotis to any technology company serious about scaling innovation.