• About Us
    • Our Team
    • What We Offer
    • Process
    • Success Stories
    • Newsletter Signup
  • Partner With Us
    • Swoop Canada
    • Venbridge
  • SR&ED Tax Credit
    • SR&ED Calculator
    • SR&ED Planning
    • SR&ED Filing Deadlines
    • SR&ED Reviews
    • SR&ED Free Webinars
  • Industries We Service
  • IRAP Funding
  • Recent News
  • 1-416-499-2861
  • info@braithwaite.ca
Free Consultation
  • About Us
    • Our Team
    • What We Offer
    • Process
    • Success Stories
    • Newsletter Signup
  • Partner With Us
    • Swoop Canada
    • Venbridge
  • SR&ED Tax Credit
    • SR&ED Calculator
    • SR&ED Planning
    • SR&ED Filing Deadlines
    • SR&ED Reviews
    • SR&ED Free Webinars
  • Industries We Service
  • IRAP Funding
  • Recent News
Twitter
Linkedin
Facebook
Envelope
  • 1-416-499-2861
  • info@braithwaite.ca
Free Consultation
  • About Us
    • Our Team
    • What We Offer
    • Process
    • Success Stories
    • Newsletter Signup
  • Partner With Us
    • Swoop Canada
    • Venbridge
  • SR&ED Tax Credit
    • SR&ED Calculator
    • SR&ED Planning
    • SR&ED Filing Deadlines
    • SR&ED Reviews
    • SR&ED Free Webinars
  • Industries We Service
  • IRAP Funding
  • Recent News
Twitter
Linkedin
Facebook
Envelope

IRAP Funding

Canada is one of the leading, research, science, development, and innovation hubs in the world. To assist companies across Canada with their innovation, Canada has invested heavily in lucrative grants and tax incentives. One specific program introduced over 70 years ago is the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP). The main goal of the IRAP program is to boost the Canadian economy through job growth as well as bringing new and innovative Canadian products/services to the market. To apply for IRAP funding, many steps and qualifications must be met. Below we take a look at the IRAP application as well as how it will affect a companies SR&ED Tax Credit.

Who Can Qualify For IRAP Funding?
To qualify for IRAP funding the applicant must be a small or medium-sized business incorporated within Canada. Non-for-profit or government bodies are excluded. The applicant must have less than 500 full-time employees and is seeking innovation or technological growth through a product and/or service in Canada.

Who Do Companies Need To Contact Before Applying?
To apply for IRAP funding, an applicant must first contact NRC to see if they meet all eligibility requirements. The contact number for NRC is 1-877-994-4727. Once approved by NRC a dedicated Industrial Technology Advisor (ITA) in your area will be assigned to your company.

What Is The Role Of An Industrial Technology Advisor (ITA)?
The dedicated ITA in your area will assist the applicant through the entire process from beginning to end. The ITA will conduct either a face-to-face meeting or a telephone meeting at the being to get a better understanding of your company. He/she will establish what is needed to qualify. Please note that the ITA will not write the business plan and technical reports.

What Are The Stages To Apply?
Project Definition
NRC is looking for the applicant to identify their need. Is the decision to purchase a product or develop new technology. A definition of the project’s objectives, resources, timelines, and deliverables are required.

Proposal For Financial Support
At this stage, the applicant will provide an overview of their business. This will include a clear description of what is necessary to achieve the project and how the objectives will be measured/achieved. Providing a budget on how the applicant will assist in the funding is imperative.

Proposal Evaluation
The ITA will now assess the proposal to understand the business opportunity, evaluate the applicant’s firm, and will consider the technical projects written. An overview of financials to support the funding will be taken into consideration.

Project Management & Follow-up
The ITA will work with the applicant from being to end adding support where needed on the business objective and technical reports.

How Long Does It Take To Receive Funding?
Once the IRAP funding has been approved, an applicant can expect the following funding timeframe:

  • 20 business days for projects with a contribution of $50,000 or less.
  • 30 business days for projects with a contribution greater than $50,000 up to $500,000.
  • 45 business days for projects with a contribution greater than $500,000 up to $3 million.
  • 65 business days for projects with a contribution greater than $3 million up to $10 million.

The applicant must submit monthly reimbursements to share the costs.

Can I Use An External Consultant For Assistance?
A company applying for IRAP funding can use an external consultant for assistance with writing the projects and business plan. Please note that the ITA will only work directly with the applicant and will not speak to the external consultant. IRAP funding does not cover the external consultants’ costs.

How Does Claiming IRAP Effect My SR&ED Tax Credit Claim?
IRAP only covers labour costs: a maximum of 80% for T4 employees and 50% for sub-contractors related to the R&D projects. SR&ED covers labour costs, additional overhead expenses, test materials, subcontractors and research payments. Since IRAP only covers limited costs, a company would be missing out on thousands of dollars in a cash or credit return if they are not applying for SR&ED. Below we have illustrated an example of a combined IRAP and SR&ED claim.

For additional information on the IRAP program and how to maximize your innovation return by stacking both the IRAP and SR&ED program together, please contact Braithwaite Canada. 

Get Innovation Funding Today

Engage our experts to optimize your SR&ED claim process, manage the compliance burden and reduce uncertainty
Contact Us

NAVIGATION

SR&ED Tax Credit
SR&ED Calculator
SR&ED Planning
SR&ED Filing Deadline
SR&ED Reviews
IRAP Funding
Industries We Service

NAVIGATION

Our Team
What We Offer
Process
Success Stories
Newsletter Signup
Recent News
Contact Us

TORONTO

900-2235 Sheppard Ave E
Toronto, ON M2J 5B5
Office: 1-416-499-2861
Email: info@braithwaite.ca
eFax: 1-437-889-0955

MONTREAL

102-165 Saint-Zotique West
Montréal, QC H2S 1P5
Office: 1-514-495-6590
Email: contact@abgi-canada.com

Twitter
Linkedin
Facebook
Envelope
© Braithwaite Technology Consultants Inc 2023. All rights reserved.
Privacy & Cookie Policy
CACCEPT
Manage consent

Privacy Overview

We use necessary cookies to enable you to move around our website and use its features. You may disable these by changing your browser settings, but this may affect how our website functions.
We would also like to set optional analytics cookies to help us improve our website by collecting and reporting information on how you use it. However, we will not set these cookies unless you enable them by using the on/off tool below and click the save and close button. Using this tool will set a cookie on your device to remember your preferences.

For more detailed information about the cookies we use, see our Cookies Policy.
You can give or withdraw your consent at any time by clicking the ‘C’ icon at the bottom left of the website.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

SAVE & ACCEPT