Ontario Automotive Modernization Program guidelines

Read the full program guidelines for submitting your project to the Ontario Automotive Modernization Program.

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Purpose of O-AMP

The Ontario Automotive Modernization Program (O-AMP) supports small- and medium- sized companies in the automotive sector to improve their operational efficiency and competitiveness and/or expand their product offering through the adoption of Industry 4.0 related technologies, tools and technologies that support new product development and/or Lean Manufacturing processes.

You can apply for up to $150,000 to support a project with activities in at least one of the following categories:

Technology adoption for process efficiency

O-AMP provides support to eligible industry projects to adopt advanced manufacturing hardware, software and/or training to improve processes and enhance competitiveness, such as Enterprise Resource Planning (ERP) systems, production tracking systems and advanced hardware implementation.

Tools and technologies to support new product development

O-AMP provides support to eligible projects to adopt technology and tools to assist with the engineering and design of new products such as Computer-Aided Design & Computer-Aided Manufacturing (CAD/CAM) systems, Finite Element Analysis (FEA) software, Design for Manufacturing (DFM) tools, rapid-prototyping tools, or other tools to support the New Product Introduction (NPI) process.

Lean manufacturing

O-AMP provides support to eligible industry projects to improve operational efficiency and competitiveness through the adoption of techniques related to Lean or Lean Manufacturing, and by procuring the services of an external mentor/consultant to assist with Lean implementation.

The mentor/consultants must be automotive industry experts with background and expertise in Lean Manufacturing process efficiency. The mentor/consultants will assist suppliers with specific business development needs. They will be identified through collaboration between the applicant company and the Automotive Parts Manufacturers’ Association (APMA) or proposed by the company through the application and based on program guidelines and project outcomes. The services provided by the mentor/consultants will qualify as an eligible expense for approved projects.

Program objectives

The O-AMP program objectives include:

increase suppliers’ ability to deliver shorter design cycle times so they can be more responsive to market changes and business opportunities with auto assemblers
encourage the adoption of new technology – software and hardware – that increases efficiency and decreases costs
support the development of new tools and technologies to innovate a product line and/or modernize the process
increase capabilities at small- and medium- sized suppliers to enhance their ability to compete in the global marketplace
help suppliers identify and solve manufacturing problems, such as production bottlenecks and other inefficiencies
contribute to the development of capable, qualified, and innovative suppliers that will be able to support auto assemblers in Ontario to remain competitive

Eligibility

Check the following criteria to determine if the company may be eligible to apply to O-AMP.

Eligible companies include:

small- and medium- sized Ontario-based enterprises (firms with fewer than 500 employees in Ontario and consolidated global revenues (for example, sales) in its most recently completed fiscal year of less than $1 billion). At least 30% of the company’s total sales revenue must come from the automotive sector
companies must also have a CRA Business Number (BN)

Eligible companies must be:

in the automotive supply chain to Original Equipment Manufacturers (OEMs) of passenger and commercial vehicles. This includes companies that supply machinery, software or components directly to OEMs. The aftermarket parts industry is not eligible; however, companies supplying products, components, software, or technologies for electric vehicles (EVs) or EV battery components are eligible
a for-profit legal entity or limited partnership duly registered to carry on business in Ontario
an owner or lessee in actual possession of a manufacturing facility in Ontario that will be the location of the proposed project by the time the project start date
provide a minimum of the most recently completed two consecutive years of financial statements (must be submitted as two separate documents) audited in accordance with International and Canadian Audit Standards (IAS/CAS) (preferred) or review engagement financial statements prepared in accordance with the Canadian Standard on Review Engagements (CSRE) 2400
if total sales revenue is under $5 million (in the most recently completed fiscal year) it may be possible to submit compilation engagements financial statements prepared in accordance with the Canadian Standard on Related Services (CSRS) 4200 (formerly known as notice to reader) at the application stage, but should your project be approved for funding you may be required to provide a minimum of review engagement financial statements
compliant with all applicable laws
free and clear of any fees, levies, charges, or taxes owed to His Majesty the King in right of Ontario or any of his agencies
compliant with the Accessibility for Ontarians with Disabilities Act, 2005, S.O. 2005, c. 11

Additional conditions

Stacking with other provincial programs is not permitted. Total funding from any federal sources plus O-AMP for this project must not exceed 50% of the total eligible project costs. A company that is currently receiving funding from another provincial program for an unrelated project is eligible to apply for O-AMP funding, provided the O-AMP project is distinct and separate.

If a company has a previous O-AMP project, the project must have been successfully completed by the intake deadline (see program website for intake deadline date) before the company is eligible to re-apply.

O-AMP is a discretionary, non-entitlement program. Even if an applicant meets all of the program objectives and eligibility criteria, the Government of Ontario is under no obligation to approve funding for your proposed project.

For questions concerning eligibility requirements or other criteria, contact a Ministry Senior Business Advisor in your region to obtain information or clarification prior to submitting an application (please refer to Section 12 below for contact information).

Eligible projects

Eligible projects must focus on either one or a combination of the following elements:

advancing hardware, software and/or training to improve processes and competitiveness, production cycle management and capabilities and/or
adopting technologies to assist with the design, engineering, or manufacturing of new products and/or
operational efficiency and competitiveness improvements through the adoption of Lean Manufacturing practices. Adoption of advanced technology may be part of the overall project scope

Eligible projects must also:

be achievable (for example, applicants must demonstrate that they possess the necessary financing, project management structure, skills and experience to implement the project)
demonstrate that project outcomes align with O-AMP objectives of advancing economic gains, business improvements and operational improvements (for example, cost savings, increase in revenue, and contributions to regional and/or automotive sector development)
be no more than two years in duration

What project costs are eligible for funding?

Only eligible project costs may be claimed for reimbursement by a successful applicant.

Please refer to the Eligible Project Costs Guidelines for O-AMP for full details of the expenses that may be claimed as eligible project costs.

The ministry will acknowledge only eligible project costs incurred and paid for on or after the application intake close date (project start date). In cases where an application is not approved and/or there is no funding agreement in place, any project costs incurred are at the risk of the applicant.

Application and evaluation process

In preparing an application, companies may consider contacting either the Automotive Parts Manufacturers’ Association (APMA) (o-amp@apma.ca) or our Business Advisors (please refer to Section 12 below for contact details) for assistance in developing their applications. Applicants are under no obligation to contact the APMA or the Business Advisors, and consultations will not affect the evaluation of applications.

Applications to the program must be submitted through the Transfer Payment Ontario (TPON) platform (refer to Section 10 below). To submit an application to TPON, please include all of the following:

completed TPON application form signed by an individual with the authority to bind the company
copy of Articles of Incorporation or Limited Partnership Agreement
the company’s most recently completed two consecutive years of financial statements (balance sheets, income statements, and cash flow statements) (must be submitted as two separate documents) audited in accordance with International and Canadian Audit Standards (IAS/CAS) (preferred) or review engagement financial statements prepared in accordance with the Canadian Standard on Review Engagements (CSRE) 2400
if total sales revenue is under $5 million (in the most recent fiscal year) it may be possible to submit compilation engagements financial statements prepared in accordance with the Canadian Standard on Related Services (CSRS) 4200 (formerly known as notice to reader) at the application stage, but should your project be approved for funding you may be required to provide a minimum of review engagement financial statements
quotes from contractors/vendors for eligible cost items
letter of financial attestation from the signing authority of the company (CEO, CFO, etc.) indicating that the company has the financial resources in place to complete the project. The letter must indicate the funding amount that the company will contribute to the project
project team member resumes

Only completed applications that are submitted on or before the application period’s closing date will be assessed. Applications should be as detailed as possible as its assessment will be based on the information provided in the application.

Tax compliance verification

Provide the Ontario Tax Compliance Verification (TCV) number in the application form. If the company is approved for funding, a Ontario TCV certificate will be required before any funds are disbursed. We require the certificate to ensure that the company is compliant federally and provincially with its tax obligations.

Working with an external firm (for example, mentor or consultants) for the purposes of preparing an application has no bearing on whether an application will be successful. Applications may only be submitted by the prospective recipients – any applications submitted by a third party on behalf of an applicant will not be considered. Any costs associated with the use of a consultant for preparing an application are not eligible project costs under O-AMP. The primary contact on the application form must be an employee of the applicant company.

All applications must be submitted by the deadline outlined on the TPON website.

Evaluation criteria

Applications are evaluated on their completeness, clarity, the feasibility of the project being proposed and its alignment with the goals and objectives of O-AMP. For all projects, funding decisions are at the ministry’s sole discretion.

Smaller projects (up to $50,000 of O-AMP funding)

Following the submission deadline, applications will be assessed by a review committee comprising an external domain expert and ministry reviewer(s). Reviewers will assess and score projects and make funding recommendations.

The review committee may at its sole discretion request presentations and/or site visits from an applicant to assist with the review of their project proposal.

Larger projects ($50,000 to $150,000 of O-AMP funding)

Following the submission deadline, applications for larger projects may undergo a two-stage review process:

the review committee will assess the project
applicants whose proposals meet the objectives of O-AMP may be invited to deliver an in person or virtual presentation to the review committee. The ministry may also request to visit the project site, particularly if the project has a Lean Manufacturing component
the review committee will make funding recommendations based on the results of both review stages

Key funding conditions

O-AMP will fund up to $150,000 of eligible project costs for approved projects.

No disbursements will be made until the funding agreement has been signed and the recipient has satisfied the following conditions to the satisfaction of Ontario:

evidence of project financing
proof of insurance
compliance with the following ministries:
- Ministry of Seniors and Accessibility (MSAA): Accessibility for Ontarians with Disabilities Act, 2005
- Ministry of Labour, Immigration, Training, and Skills Development (MLITSD)
- Ministry of the Environment, Conservation and Parks (MECP)
- Ministry of Finance (MOF): Tax Compliance Certificate
supplier registration form

For previously successful O-AMP recipients, all reporting requirements related to the previously funded project(s) must have been received by the ministry.

Other conditions may need to be met before disbursements are made. Insurance is not an eligible project cost and will not count towards the final project value.

Successful applicants are expected to contribute at least 50% to eligible project costs from their internal resources or through private/bank financing.

Funding agreements

Each successful applicant will be required to enter into a funding agreement with His Majesty the King in right of Ontario on terms and conditions satisfactory to the ministry. Once funding agreements are executed and come into effect, successful applicants are obligated to report on specific milestones and performance measures that will be outlined in the funding agreement. Performance measures and milestones provide indications on the progress of the project and the achievement of commitments defined in its funding agreement. Funding agreements will include provisions requiring funds to be repaid if performance measures and/or other terms and conditions of the funding agreement are not met. Ministry funding agreements require written assurance that the contracting organization is compliant with all applicable laws, including accessibility legislation. Any company that submits an application and has outstanding compliance issues, their application will not be considered complete. Outstanding compliance issues must be resolved before the company is eligible to apply to the program.

The scope of the project cannot be significantly altered after companies have presented their proposed projects to the review committee. In particular, total eligible project costs may not be reduced by more than 10% of the original project cost prior to execution of a funding agreement with the ministry. A reduction of more than 10% of the original eligible project costs will lead to an application being reassessed and/or deemed ineligible for funding.

Project reporting and claims for eligible expense requirements

Interim progress report(s)

Interim report(s), including progress of project, proof of expenditures, and a request for disbursement shall be submitted halfway through the project.

Final report

A final report including results of the project, achievement of key performance metrics, proof of expenditures, financial attestations, job status, and a request for disbursement will be required upon project completion. A successful applicant must submit its final report within thirty days of project completion to be reimbursed for expenses incurred for eligible project costs.

Eligible expense claims for interim progress and final results report(s)

Detailed reporting instructions will be sent to successful applicants at the time of contracting. The interim progress report(s) and a final report must be received and approved by the ministry prior to the release of funds for eligible project expenditures.

Note: Successful applicants must retain all proof of purchases, paid invoices, receipts, and other relevant documentation related to expenses incurred for eligible project costs. These should be included in the interim progress report(s) and final report. Companies must maintain all financial records (including original invoices of any items that have been purchased for the project and receipts or other evidence of payment for these items) for a period of seven years from their creation.

How to apply with Transfer Payment Ontario (TPON)

TPON is the source for grants provided by a number of Government of Ontario ministries. TPON provides a one-window access to information about grants that are available to companies, how to apply for grants and how to check the status of an application.

To apply for O-AMP funding, companies must first register with TPON.

To register:

create a ONe-key account and ID. ONe-key is used for secure access to the Government of Ontario system. It is strongly recommended that Account recovery information is created during this process in case of forgotten log-in information. Administrators are not able to retrieve ONe-key IDs
register the company on TPON. The following items are required for registration: Canada Revenue Agency Business Number (CRA BN), Legal Name, Operating Name, and information on at least two contacts within the organization. Note: TPON could take up to 5 business days to process the request but is typically faster
as soon as the company is registered, a “Funding Opportunities” button will appear. From here companies can apply for O-AMP funding and manage applications. Please ensure applications are submitted during a time when the specific program is open for applications (details are available on the website for each program)

Confidentiality and public reporting

Freedom of Information and Protection of Privacy Act

The Government of Ontario (Ontario) is bound by the Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c. F.31 (FIPPA). Any information provided directly or indirectly to Ontario, including to the Ministry of Economic Development, Job Creation and Trade, may be subject to disclosure in accordance with FIPPA.

Projects funded by O-AMP may be publicly announced.

We must publicly report annually on the status of business support programs and strategic investments, including project descriptions and project investment commitments, amount of government support, and results achieved to date.

Contact information

Applicants have the option to contact the Automotive Parts Manufacturers’ Association (APMA) for assistance in developing and strengthening applications at o-amp@apma.ca.

Applicants may also seek assistance from the Ministry’s Senior Business Advisors to develop and strengthen an application.

Business Advisory Services - Southwestern Region Main Office

westernregionbas@ontario.ca

Business Advisory Services - Central Region Main Office

centralregionbas@ontario.ca

Business Advisory Services – Eastern Region Main Office

For inquiries specifically related to navigating the online application system, please contact TPON Client Care, Monday to Friday from 8:30 a.m. to 5:00 p.m. Eastern Standard Time at 416-325-6691 or 1-855-216-3090, or at tponcc@ontario.ca.

For general inquiries and questions specifically related to contracting and funding claims, please contact the O-AMP delivery team at o-amp@ontario.ca.

Eligible project cost guidelines

Eligible project costs mean those costs, net of applicable HST, which are directly attributable to, and necessary for, the completion of the project and are not wholly or partially for another purpose. Eligible project costs are incurred and paid for by the company on or after the application intake close date (project start date) up to and including the date that the project is completed (project completion date). Any costs for which the company is eligible to receive a rebate, credit or refund are not eligible project costs. The categories of eligible project costs are capital costs, training costs, salaries and benefits and travel and living costs.

O-AMP will review all expenses and will approve only those expenses directly related to the project and deemed reasonable and necessary for execution.

Capital costs

Capital costs are those costs incurred for capital items (for example, fixed assets) and include equipment, testing tools, software costs and instruments that have residual values as determined by Generally Accepted Accounting Principles (GAAP) at the end of the funding period.

GAAP is a collection of commonly followed accounting rules and standards for financial reporting. The purpose of GAAP is to ensure that financial reporting is transparent and consistent from one organization to another.

Eligible costs

Eligible costs related to capital costs include:

purchase, implementation, installation, and setup costs of hardware and software that support manufacturing, engineering, design, prototyping and/or logistics processes
software licencing costs are eligible only for the duration of the project up to the project completion date
cost of direct materials necessary for specifically identified activities and measured as having been used for the completion of the project
materials used for configuring and testing production processes, systems, and training employees

Ineligible costs

Ineligible costs related to capital costs include:

tax expenses (including, but not limited to, HST, sales taxes, tax filing, income taxes, etc.)
allowance for interest on invested capital, bonds, debentures, bank or other loans together with related bond discounts and finance charges
ongoing operations including maintenance
refinancing of existing business operations
acquisitions and buyouts of another business (in whole or in part)
insurance
costs related to the development of O-AMP application
restructurings or relocations to other jurisdictions within Ontario
routine upgrades to production and other equipment
costs of a personal nature
costs related to staff awards and recognition
monthly parking fees
cost for research and development
costs of relocation of factory/facilities
meals and entertainment costs, gifts and alcoholic beverages
costs associated with lobbying or government relations activities
costs not directly associated with meeting the deliverables and milestones as specified in the funding agreement with the ministry
cost of basic utility services
tangible capital costs such as, but not limited to, land, buildings, vehicles, equipment such as storage cabinets, tool cribs, forklifts, shelving, tooling, telephones, carts and any other equipment that is not related to technology adoption
infrastructure costs (for example, building and facilities)
costs related to research and development activities

Additional limits and conditions

Invoice amounts in foreign currencies must be converted to Canadian Dollars (CAD) at the exchange rate prevailing at the time of the transaction.

Exchange rates used must be shown either on the invoices or be drawn from the financial institution used. Proof of exchange rates used should be submitted along with the signed invoices.

Training costs

Eligible costs

Eligible costs related to training include:

costs involved in providing personnel with training and/or development in novel techniques required for the project for their role(s)
staff hours charged by non-management employees
sub-contractor and consultant fees (must be associated with LEAN mentorship/specialized expertise related to LEAN)

Ineligible costs

Ineligible costs related to training include:

meals and entertainment costs, gifts and alcoholic beverages
payments made to management (for example, Directors, business heads, CXOs, etc.) for any time or activity toward training

Salaries and benefits

Eligible costs

Eligible costs related to salaries and benefits include:

incremental salary and benefits for employees of the company working on the project activities, to a maximum specified in the funding agreement with the ministry (position and employment status must be specified)
hourly wages for training for employees who are not part of company management team
external third-party training provider costs

Ineligible costs

Ineligible costs related to salaries and benefits include:

costs related to proposal development (including staff and consultants)
management salaries, including any activity related to managing the project

Additional limits and conditions

Salaries and benefits must only be claimed in proportion to the amount of time spent working directly on project activities.

The company shall be required to maintain signed timesheets or appropriate records for all employees working directly on the project.

Hourly wages used for the staff hours being expensed must be stated in the supporting documentation.

Travel and living costs

Eligible costs

Eligible costs related to travel and living include transportation and accommodation costs that are exclusively project-related and use the most economical option (economy fare and standard hotel rooms). Any costs that are not the most-economical option will be rejected

Ineligible costs

Ineligible costs related to travel and living include:

meals and incidentals costs
reimbursement for airfare purchased with personal frequent flyer points or programs
commuting costs between residence and place of employment
passport and immigration fees

Additional limits and conditions

Travel outside of Ontario will require prior documented approval from the ministry unless travel to such location is for employee training purposes and is referred to specifically in the company’s agreement.

Updated: June 13, 2025

Published: June 09, 2025