# IRAP — Industrial Research Assistance Program | GrantOps

IRAP (Industrial Research Assistance Program) is Canada's premier innovation assistance program for small and medium-sized enterprises (SMEs). Administered by the National Research Council of Canada (NRC), IRAP provides non-repayable contributions of up to $10 million to help Canadian SMEs increase their innovation capacity and commercialize R&D.

GrantOps automates IRAP project documentation and application preparation, integrating IRAP with your SR&ED claims for maximum recovery.

## What is IRAP?

The NRC Industrial Research Assistance Program (NRC IRAP) has been supporting Canadian SMEs for over 75 years. It provides:

- **Non-repayable financial contributions** — up to $10 million per project for R&D and commercialization activities
- **Advisory services** — access to a national network of Industrial Technology Advisors (ITAs) who provide business and technical guidance
- **Connections** — introductions to potential partners, customers, and other government programs

IRAP is not a tax credit like SR&ED — it is a direct funding contribution. IRAP funds are provided upfront or on a milestone basis and do not need to be repaid.

## IRAP Funding Amounts

- **Youth Employment Program**: Up to $30,000 per position (salary subsidy for recent graduates)
- **Small R&D projects**: $50,000 - $500,000
- **Standard R&D projects**: $500,000 - $2,000,000
- **Large-scale projects**: Up to $10,000,000 (for transformative R&D)
- **CanExport Innovation**: Up to $75,000 for international R&D partnerships (delivered through IRAP)

## IRAP Eligibility Requirements

To be eligible for IRAP, your company must:

- Be a **Canadian SME** (incorporated in Canada, 500 or fewer full-time equivalent employees)
- Have the **objective to grow and generate profits** through development and commercialization of innovative, technology-driven products, services, or processes
- Be a **for-profit corporation** (not a not-for-profit, sole proprietorship, or partnership — though exceptions exist)
- Have a **technically feasible project** with clear R&D objectives, timelines, and milestones
- Demonstrate **financial capacity** to complete the project (IRAP typically funds 50-80% of eligible costs, not 100%)

### What IRAP Funds

- Salaries and wages of employees working directly on the R&D project
- Subcontractor costs (Canadian subcontractors preferred)
- Project-related travel (domestic and international)
- Materials and supplies consumed in R&D
- Prototype development costs
- Testing and certification costs
- IP-related costs in some cases

### What IRAP Does NOT Fund

- Capital equipment purchases (in most cases)
- Ongoing operations or maintenance
- Marketing and sales activities (use CanExport instead)
- Projects that are already completed
- Projects funded entirely by other government programs

## How to Apply for IRAP

1. **Contact your regional NRC-IRAP office** or apply online at the NRC IRAP website
2. **Assigned an Industrial Technology Advisor (ITA)** who assesses your company and project
3. **Develop a project proposal** with the ITA, including technical objectives, milestones, budget, and timeline
4. **Submit a formal application** through your ITA
5. **Review and approval** — IRAP evaluates technical merit, commercial potential, management capability, and financial capacity
6. **Contribution agreement** signed — funds are disbursed on a milestone or claim basis
7. **Project execution and reporting** — regular progress reports and financial claims

The process typically takes 2-4 months from initial contact to contribution agreement.

## IRAP vs. SR&ED — Key Differences

| Feature | IRAP | SR&ED |
|---------|------|-------|
| Type | Direct funding (non-repayable) | Tax credit |
| Amount | Up to $10M per project | 15-35% of eligible expenditures |
| Timing | Upfront/milestone-based | After fiscal year end (retroactive) |
| Eligibility | SMEs only (500 employees or fewer) | All Canadian businesses |
| Application | Competitive, requires approval | Tax filing, available to all eligible |
| Administration | NRC | CRA |
| Repayable | No | No (it's a tax credit) |

## Stacking IRAP with SR&ED

IRAP and SR&ED can be used together, but there are important rules:

- **IRAP contributions reduce SR&ED-eligible expenditures** — you cannot "double-dip" on the same costs
- However, the **net benefit of combining IRAP + SR&ED** is almost always greater than either alone
- GrantOps automatically calculates the optimal allocation between IRAP-funded and SR&ED-claimed expenditures to maximize your total recovery
- Many companies use IRAP for project-specific funding while claiming SR&ED on their broader R&D program

## How GrantOps Helps with IRAP

GrantOps automates and streamlines the IRAP process:

- **Project documentation**: Auto-generates IRAP project summaries, technical objectives, and milestone plans from your connected development tools
- **Application preparation**: Produces draft IRAP applications aligned with NRC evaluation criteria
- **Progress reporting**: Automatically compiles progress reports from your Git commits, tickets, and project data
- **Financial claims**: Tracks eligible expenditures and prepares IRAP financial claims
- **SR&ED coordination**: Optimizes the split between IRAP-funded and SR&ED-claimed expenditures for maximum combined recovery
- **5,500+ program matching**: While preparing your IRAP application, GrantOps also identifies other programs you may qualify for

## Get Started

- Automate your IRAP applications: https://app.grantops.ai
- SR&ED automation: https://grantops.ai/en/sred/
- CanExport grants: https://grantops.ai/en/canexport/
- Browse 5,500+ programs: https://grantops.ai/en/programs/
- Partner Program for advisors: https://grantops.ai/en/grantops-partner-program/