NRC IRAP Program: a guide to funding your R&D in 2026

Your SME is developing a promising technology, but every dollar invested in research weighs heavily on cash flow. The NRC IRAP Program addresses exactly this need. It combines direct funding with technical advice to help innovative companies carry out projects without exhausting their liquidity.

The challenge is that many business leaders do not know how the program works, which costs it covers or where to begin. They therefore miss one of the main federal entry points for funding innovation.

This guide explains the essentials. You will learn what IRAP funds, which rates may apply, the central role of an advisor, the eligibility criteria and the process for submitting a credible proposal.

What is the NRC IRAP Program?

The Industrial Research Assistance Program is administered by the National Research Council of Canada. For more than 75 years, it has supported innovation at Canadian small and medium-sized businesses through financial assistance and advisory services.

Its strength lies in this dual approach. On one hand, it offers financial contributions that reduce the cost of research and development projects. On the other, it gives companies access to a national network of specialists who guide them from concept through commercialization.

IRAP primarily targets the development and commercialization of innovative, technology-driven products and services, along with other innovation activities that support business growth. It is often one of the first federal programs considered by a young technology company.

The government has announced the eventual integration of IRAP into the Canada Innovation Corporation. However, the 2026–27 Departmental Plan confirms that NRC IRAP continues to provide services and funding to Canadian SMEs while the federal structure evolves.

What NRC IRAP funds and at what rate

IRAP may contribute to a portion of a project’s eligible technical R&D costs. Terms are established project by project and depend on the funding stream, assessment and available funds.

In several recent calls for proposals administered by NRC IRAP, the published maximum rates for certain cost categories are:

Type of expenditure	Indicative maximum coverage
Eligible salaries for staff assigned to the project	Up to 80%
Eligible contractor and subcontractor fees	Up to 50%

These percentages are not an automatic offer for every project under the general program. The contribution agreement confirms the expenditures, rates, maximum contribution and stacking rules that apply to each recipient.

Internal salaries often represent the largest share of funding. Contractor fees may supplement the assistance when a company outsources part of the technical development.

Other public assistance must be disclosed. The contribution agreement sets out the stacking rules and prohibits claiming the same expenditure twice. Once the agreement is signed, the company submits eligible expenditures with the required supporting documents. The NRC’s current service standard is to issue payment within 35 business days after receiving all required documents and a correctly completed claim.

For example, an SME allocating $200,000 in eligible technical salaries to a project could receive a significant contribution, although no rate or amount is guaranteed before assessment and execution of the agreement.

The role of an Industrial Technology Advisor

Industrial Technology Advisors are at the heart of IRAP. This national network supports SMEs across Canada and often makes the difference in structuring a fundable project.

The advisor assesses the project’s technical and commercial potential, directs the company to appropriate resources and reviews its eligibility before a complete proposal is submitted. Establishing this relationship early—before an urgent funding need arises—is one of the best strategic steps a company can take.

Which businesses are eligible for NRC IRAP

IRAP works with a specific business profile. Checking your eligibility before investing time in a proposal helps avoid unnecessary work.

The main eligibility criteria are:

• Be an incorporated, for-profit SME operating in Canada.
• Employ up to 500 people on a full-time-equivalent basis.
• Develop and commercialize an innovative, technology-driven product or service.
• Be ready to generate economic benefits in Canada, such as new jobs or increased innovation capacity.
• Have the business, management and financial capacity needed to complete the project.

The program assesses the technical aspects of the innovation, the likelihood of achieving results, commercialization plans, market potential and benefits to Canada. It does not fund day-to-day operating costs, purely commercial activities, work performed outside Canada or research with limited commercialization potential.

IRAP supports many sectors, from manufacturing and information technology to clean technology and biomedicine. Specialized initiatives also target artificial intelligence, clean technology, cybersecurity, intellectual property and international co-innovation.

If your company operates in the technology sector, other programs may apply as well. Our article on Quebec technology industry grants outlines complementary assistance to consider.

Would you like to know whether your project fits IRAP? Speak with a specialist to validate your eligibility and build a strong proposal.

How to apply to NRC IRAP

IRAP is not simply a form completed in isolation. The process is built around discussions with an advisor and the strength of the proposal.

The typical steps are:

1. Contact the NRC to introduce your company and its innovation needs.
2. Discuss the project, technical objectives and commercial potential with an Industrial Technology Advisor.
3. Prepare a documented proposal if the project is invited to proceed to the funding stage.
4. Provide the technical, commercial and financial information requested for the formal assessment.
5. Receive the decision and, if approved, execute the agreement before claiming eligible expenditures.

Once the complete proposal and requested documentation have been received, NRC service standards provide for a decision within 20 to 65 business days, depending on the requested contribution. Funding remains subject to a formal assessment and the availability of funds.

Combining NRC IRAP with SR&ED and other assistance

IRAP may be combined with other measures, which significantly increases its value. The most common pairing is with the Scientific Research and Experimental Development tax credit.

A company may receive an IRAP contribution during the project and then claim an SR&ED tax credit on its remaining eligible expenditures. However, government assistance received or receivable for SR&ED work reduces the qualified expenditures used to calculate the credit. IRAP therefore does not make the project ineligible for SR&ED, but it reduces the credit that can be earned on the same costs. Consult the official page explaining SR&ED tax incentives to understand this interaction.

For a broader view of available options, our guide to Quebec funding programs and our grants and tax credits portal can help you build a coherent strategy.

Use NRC IRAP as a springboard for your R&D

The NRC IRAP Program remains one of the most accessible ways to fund innovation at a Canadian SME. Potential contributions toward salaries and contractors, support from an advisor and the ability to combine IRAP with SR&ED make it a valuable tool for reducing the financial risk of a technology project.

Success depends on establishing a relationship with an advisor early and presenting a rigorous proposal. To validate your project and improve its likelihood of approval, book a consultation with a specialist as soon as your idea begins to take shape.

FAQ

What percentage of costs does NRC IRAP fund?

Rates are established according to the project and funding stream. Several recent IRAP calls publish maximum rates of up to 80% of eligible salary costs and 50% of eligible contractor costs. These rates are not guaranteed for every application: the contribution agreement confirms the costs, percentages, maximum contribution and stacking rules that apply.

Which businesses are eligible for NRC IRAP?

IRAP works with incorporated, for-profit SMEs operating in Canada with up to 500 full-time-equivalent employees. The company must develop and commercialize a technology-driven innovation and be ready to generate economic benefits in Canada. Meeting these minimum criteria does not guarantee advisory support or funding.

Can NRC IRAP be combined with the SR&ED tax credit?

Yes. A company may receive an IRAP contribution during its work and then claim the SR&ED tax credit. However, government assistance related to the same work reduces the expenditures qualified for the credit, and the same expenditure cannot be funded twice. Planning the combination helps ensure compliance while optimizing the project’s overall funding.