The Industrial Research Assistance Program (IRAP) is the workhorse of Canadian R&D funding. It’s been around since 1962, and it’s still the first program most technology companies interact with when they start looking for government support. In 2026, NRC made several changes that affect who qualifies, how much you can get, and how IRAP fits alongside other programs.

What changed with IRAP in 2026?

Three significant updates landed in the 2026 fiscal year:

  • Contribution limits increased. Maximum project contributions moved up to reflect actual R&D costs. Typical IRAP projects now fund $50K–$500K in eligible R&D costs, with larger contributions available for complex projects.
  • Expanded eligibility for medium-sized companies. IRAP historically focused on small firms, typically under 500 employees and $50 million in revenue. The 2026 update raised the practical revenue threshold, bringing more mid-market companies into scope.
  • Streamlined application for returning clients. Companies that have successfully completed a previous IRAP project can now apply for subsequent funding with a simplified process. Less duplication of company background information, faster time to assessment.

Who qualifies for IRAP now?

The core criteria haven’t changed in principle, but the practical boundaries have shifted. To be eligible, your company must be:

  • A Canadian corporation (incorporated in Canada or a Canadian subsidiary)
  • A small or medium-sized enterprise with growth potential
  • Pursuing R&D or technology innovation with commercial objectives
  • Willing to share results with your assigned NRC Industrial Technology Advisor (ITA)

The "small or medium-sized" definition is where the practical change sits. IRAP has always had some flexibility here, but the 2026 guidance makes it clearer that companies with 200–500 employees and $20M–$80M in revenue are solidly in scope. If you previously assumed your company was too large for IRAP, it’s worth checking again.

IRAP is not just cash. Every funded company gets an NRC Industrial Technology Advisor — a senior technical professional who provides strategic R&D advice, helps identify additional funding sources, and connects you to NRC’s research facilities and expertise. That advisory relationship alone is worth the application.

IRAP vs. other R&D programs: when to use which

This is the question we answer more than any other. Canadian companies doing R&D have at least four major federal options. Here’s when each one fits:

IRAP vs. SR&ED

They’re not either/or. IRAP is a contribution, direct cash funding for a specific R&D project. SR&ED is a tax credit — a retroactive refund on eligible R&D expenditures. Most companies should be doing both. IRAP funds the project. SR&ED refunds a portion of the broader R&D spend, including work not covered by IRAP.

One important nuance: IRAP contributions reduce your SR&ED eligible expenditures. If IRAP pays $200K toward a project, you can’t also claim that $200K under SR&ED. But the rest of your R&D spend (salaries, materials, subcontracting on non-IRAP work) remains fully eligible.

IRAP vs. NGen

NGen (Next Generation Manufacturing Canada) funds collaborative advanced manufacturing projects. If your R&D is in manufacturing technology (AI-driven production, automation, Industry 4.0) and involves at least one industry partner, NGen may offer larger funding than IRAP. NGen projects range from $100K for pilot studies to $8M+ for advanced manufacturing. But NGen requires a consortium structure, which adds complexity.

IRAP vs. SRF

The Strategic Response Fund is for large-scale projects, typically $10M+ in total project cost. If your R&D is part of a bigger commercialization play, SRF is the right vehicle. Many companies start with IRAP for early-stage R&D, then scale into SRF when the project reaches commercialization. We’ve structured that transition for dozens of clients.

How IRAP absorbed SDTC programming

In June 2024, Sustainable Development Technology Canada (SDTC) was abolished following an Auditor General investigation. The government transferred SDTC’s mandate — funding clean technology development and demonstration — to NRC IRAP.

What does this mean in practice? IRAP now has an explicit clean technology stream. Companies that would previously have applied to SDTC for demonstration-stage funding (projects between $500K and $5M, typically) now apply through IRAP. The NRC added staff and expanded its advisory network to handle the increased volume.

If you had an active SDTC project at the time of transition, NRC honoured existing agreements. New applications go through IRAP’s standard process, but with dedicated ITAs who specialize in clean technology assessment.

Your first step: get assigned an ITA

Before anything else, your company needs to contact NRC directly and get assigned an Industrial Technology Advisor (ITA). This is a relationship your team needs to own. Your ITA becomes your primary point of contact within the program — they assess your R&D capacity, help shape your project scope, and ultimately champion your application internally.

We can help prepare applications, build projections, write technical narratives, and guide strategy on the back end — but the ITA relationship is one task that needs to be done by your team directly. Call NRC toll-free at 1-877-994-4727 to get started.

Don’t wait until you have a polished project plan. NRC wants to hear from you early. Your ITA can help shape the project before you apply. The earlier you build that relationship, the stronger your application will be.

Getting the most from your IRAP engagement

After helping companies through hundreds of IRAP projects, here’s what separates the ones that maximize the program from the ones that leave value behind:

  1. Start early. Don’t wait until the R&D is half-done. IRAP funds prospective work, not retrospective. The earlier you engage, the more of your project costs are eligible.
  2. Treat your ITA as a strategic resource. Your Industrial Technology Advisor isn’t a bureaucrat. They’re a senior technical professional with deep networks. Use them. Ask about other programs, NRC facilities, and industry connections.
  3. Plan for the SR&ED interaction. Structure your IRAP project budget so you know exactly which costs are IRAP-funded and which remain eligible for SR&ED. This isn’t complicated if you plan it upfront, but it’s a headache to sort out retroactively.
  4. Think in sequences. IRAP is rarely the only program. Use it as the entry point, then layer on SR&ED, NGen, SRF, or provincial programs as the project evolves. That’s what Fundspoke does. We map the full funding trajectory, not just one application.

If you’re doing R&D in Canada and you’re not talking to IRAP, you’re leaving the most accessible source of non-dilutive capital on the table. And if you’re already in the IRAP ecosystem but not layering other programs on top, you’re still leaving money behind.

We can help with both. Here’s how it works.