NRC IRAP
Up to 80% of your R&D project costs — funded by the NRC, not a loan
Overview
$1.3 billion distributed annually to Canadian SMEs through IRAP
NRC IRAP is the federal government's flagship program for pre-commercialization R&D. Unlike SR&ED (which refunds past expenses), IRAP funds future projects — you get money to build, not money back for what you already spent.
IRAP assigns you a dedicated Industrial Technology Advisor (ITA) who evaluates your project and, if approved, co-funds salary costs for R&D employees working on the project. Coverage ranges from 50% to 80% of eligible costs.
The program is rolling intake — no fixed deadline. But competition is fierce. Projects with clear technical uncertainty and commercial potential get funded. Feature work and routine engineering do not.
Who Qualifies
Hard Gates — Must Have
Incorporated in Canada
Must be a Canadian corporation
500 employees or fewer
Headcount at time of application
Revenue under $50M
Annual gross revenue threshold
For-profit
Not eligible for non-profits or government entities
Soft Gates — Nice to Have
Active R&D spending
Demonstrates innovation capacity
Technical uncertainty
Project must push beyond known solutions
Commercial potential
Clear path to market or revenue
How Much
Range
$50K – $500K
Rate
50–80% of eligible costs
Example Recovery
$150K – $240K
IRAP covers salary costs (including benefits) for employees working directly on the funded project. Coverage percentage depends on project stage and company maturity.
Worked Example
Your spend
$300K R&D project (3 developers × 12 months)
You recover
$150K – $240K
Note
Based on 50-80% of $300K eligible salary costs
Application Process
Contact your local ITA
NRC assigns an Industrial Technology Advisor to your region. They're your first point of contact.
Project scoping meeting
ITA reviews your project for technical uncertainty and commercial potential.
Formal application
Submit detailed project plan, budget, and technical narrative with ITA guidance.
Review and approval
NRC committee evaluates the proposal. ITA advocates for your project.
Project execution
Quarterly check-ins with ITA. Submit expense claims as you go.
Common Mistakes
Applying for routine development
IRAP funds innovation, not feature work. If you already know how to build it, IRAP won't fund it. You need genuine technical uncertainty.
Underestimating the ITA relationship
Your ITA is your advocate inside NRC. Companies that engage early and often get better outcomes than those who submit and wait.
Confusing IRAP with SR&ED
IRAP is forward-looking project funding. SR&ED is backward-looking tax credits. You can and should stack both — IRAP for the project, SR&ED for the tax return.
Key Deadlines
Intake
Rolling (no fixed deadline)
Apply anytime, but budget cycles mean early-year applications have more funding available
Best time to apply
January – March
New fiscal year funding unlocks in April. Applications submitted Q1 are positioned best.
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Check if you qualify for NRC IRAP
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