Funding programmes for digitalisation in Baden-Württemberg

Many SMEs in Baden-Württemberg have a software project in mind: replacing spreadsheets with a proper system, connecting machines, building a customer portal or using AI on their own documents. Funding can lower the cost, but the programme landscape changes often. This article gives an overview as of November 2026 and shows how to prepare.

Important: we are a software company, not a funding adviser. Conditions, rates and deadlines change, sometimes at short notice. Always check the current conditions with the funding body, your bank, your IHK or Handwerkskammer before you plan with a programme. Most programmes require you to apply before you sign a contract or start the project.

What happened to the Digitalisierungsprämie Plus?

For years, the Digitalisierungsprämie Plus was the best-known digital funding programme in Baden-Württemberg, with grants or loans with a repayment bonus for digitalisation projects of small and medium-sized companies. The grant variant has ended: applications are no longer accepted since mid-2025.

Since then, the state supports digitalisation mainly through the L-Bank Digitalisierungsfinanzierung: a promotional loan, combined with a repayment bonus (Tilgungszuschuss), applied for through your bank. The conditions, such as the bonus rate, loan amounts and eligible costs, have been adjusted several times. Check the current L-Bank conditions before planning.

Programmes worth checking

State level (Baden-Württemberg)

• L-Bank Digitalisierungsfinanzierung: promotional loan with repayment bonus for digitalisation projects, including software, hardware and related services. Applied for through your bank (Hausbankprinzip).
• Innovationsgutscheine: the state has offered vouchers for innovation projects with external research or development partners. Check whether a round is currently open and whether your project fits.
• Mittelstand-Digital Zentren and regional digital hubs: free, independent advice, workshops and demonstrations for SMEs. A good first step before investing.

Federal level

• KfW ERP-Digitalisierungs- und Innovationskredit: promotional loan for digitalisation and innovation projects, also applied for through your bank.
• BAFA Förderung von Unternehmensberatungen: subsidises consulting services for SMEs, for example a digitalisation strategy. Applications are currently possible until the end of 2026.
• Forschungszulage: a tax incentive for research and development, including software development that solves a technical problem in a new way. It is claimed through your tax return after certification of the project, and it is available for companies of all sizes.

Earlier federal programmes such as "Digital Jetzt" and "go-digital" have ended. Older articles that still recommend them are out of date.

What can usually be funded

The details depend on the programme, but typical eligible costs include:

• Development of individual software and apps.
• Software licences and cloud services within the project period.
• Hardware and IoT components that are part of the project.
• Consulting, concept and training related to the digitalisation project.
• IT security measures.

Ongoing operating costs after the project, and projects that have already started, are usually not eligible.

How to prepare an application

1. Describe the project in business terms: what problem you solve, which processes change and what you expect, such as hours saved, fewer errors or new services.
2. Define the scope and timeline: phases, milestones and a realistic start date after the application.
3. Get a cost breakdown: a detailed quote from your software partner, split into development, licences, hardware and services.
4. Talk to your bank early: for loans with a repayment bonus, the bank submits the application. Bring the project description and quote.
5. Use free advice: your IHK, Handwerkskammer or a Mittelstand-Digital Zentrum can tell you which programme fits and what the current conditions are.
6. Wait for approval before signing: starting too early usually makes the project ineligible.

How we help

We do not give funding advice, but we help with the parts that funding bodies and banks need from your software partner: a clear project description, a phased plan with milestones and a detailed, itemised quote. For projects with a technical challenge, we can also document the development work in a way that supports a Forschungszulage application. Our engagement models and the app cost estimator are a good starting point for a first budget.

Conclusion

Funding for digitalisation in Baden-Württemberg still exists, but it has shifted from grants towards promotional loans with repayment bonuses and tax incentives. Check the current conditions, apply before you start, and prepare a clear project description and quote. See our custom software development services or talk to us about your project.

Get a project description and quote