NRC IRAP: How to Access Canada's AI Adoption Funding
The National Research Council's Industrial Research Assistance Program (IRAP) is one of Canada's most valuable funding programs for small and medium-sized businesses pursuing innovation. If your company is adopting AI, building new technology, or improving existing processes through R&D, IRAP could provide non-repayable contributions, advisory services, and the strategic support you need to succeed.
What Is NRC IRAP?
The Industrial Research Assistance Program (IRAP) is delivered by the National Research Council of Canada (NRC). It has been supporting Canadian innovators for over 75 years, making it one of the longest-running and most trusted innovation support programs in the country.
IRAP provides financial assistance and advisory services to qualified small and medium-sized enterprises (SMBs) in Canada. The program helps businesses increase their innovation capacity, commercialize new technologies, and adopt advanced tools -- including artificial intelligence -- to stay competitive in the global marketplace.
Unlike loans or repayable financing, IRAP contributions are non-repayable. This means the funding does not need to be paid back, provided you use it for the approved project activities and meet reporting requirements.
What sets IRAP apart from many other programs is the Industrial Technology Advisor (ITA) model. Each participating business is paired with an ITA -- a seasoned technology professional who understands your industry. Your ITA provides hands-on strategic guidance, helps scope your project, connects you with NRC resources and networks, and supports you throughout the entire funding journey.
IRAP AI Assist Program
Recognizing that artificial intelligence is a transformative force for Canadian businesses, the federal government has invested over $100 million in AI-focused initiatives -- and IRAP is a key delivery mechanism for getting that funding into the hands of SMBs.
The IRAP AI Assist stream specifically targets companies that are adopting, implementing, or developing AI solutions. Whether you are integrating machine learning into your product, automating internal workflows with AI, or building data pipelines to support predictive analytics, this stream can provide:
Non-repayable contributions
Direct funding for eligible AI project costs including salaries, contractors, and tools.
Advisory services
Your ITA helps you scope the AI project, identify technical risks, and connect with AI expertise.
Part of $100M+ federal AI investment
IRAP AI Assist is funded by the Government of Canada's national AI strategy commitment.
Project-based funding
Contributions are tied to specific, well-defined AI adoption or development projects with measurable outcomes.
AI Assist operates under the same IRAP framework and eligibility criteria. If your project involves AI adoption or development, your ITA will help determine whether the AI Assist stream is the best fit.
IRAP Eligibility Requirements
IRAP eligibility is assessed by your assigned Industrial Technology Advisor based on your company profile and proposed project. While every situation is unique, the following are the core criteria that NRC IRAP evaluates:
Canadian incorporated
Your business must be a corporation incorporated in Canada under federal or provincial legislation. Sole proprietorships and partnerships generally do not qualify.
Fewer than 500 full-time equivalents (FTEs)
IRAP is designed for small and medium-sized businesses. Your total workforce, measured in full-time equivalents, must be under 500 employees at the time of application.
Profit-oriented
Your business must be operating for profit. Non-profit organizations, charities, and educational institutions are not eligible for IRAP SMB funding (though they may access other NRC programs).
Pursuing innovation or technology adoption
You must have a specific project that involves developing or adopting new technology, improving a process, or creating an innovative product or service. AI adoption projects are strongly aligned.
Capacity to manage and exploit results
Your company must demonstrate it has the management capability, technical resources, and market strategy to carry out the project and commercialize or implement the results.
Important note
Meeting the criteria above does not guarantee IRAP funding. Eligibility is assessed on a case-by-case basis, and funding depends on available program budgets and the strength of your project proposal. Qyntral's assessment can help you understand your alignment with these criteria before you begin the process.
Types of IRAP Support
IRAP is more than a cheque. The program provides multiple forms of support that, taken together, create a comprehensive innovation ecosystem for Canadian SMBs:
Industrial Technology Advisor (ITA) Advisory
Every IRAP client is assigned a dedicated ITA who provides personalized, one-on-one strategic and technical advice. ITAs are experienced professionals with deep industry knowledge. They help you refine your innovation strategy, identify technical risks, connect with researchers and industry partners, and navigate the broader funding landscape. This advisory service alone is worth tens of thousands of dollars.
Youth Employment Program (YEP)
IRAP's Youth Employment Program provides wage subsidies to help SMBs hire post-secondary graduates for innovation-related positions. If your AI project needs a data scientist, machine learning engineer, or software developer, YEP can offset a significant portion of their salary for up to 12 months. This is an excellent way to build AI capacity within your team.
AI Assist Contributions
For companies specifically pursuing AI adoption or development, the AI Assist stream provides non-repayable contributions to cover project costs. This can include salaries of team members working on the AI initiative, third-party contractors, cloud computing costs, AI tool subscriptions, and training data acquisition.
Innovation Assistance Program
The core IRAP funding stream supports a wide range of technology innovation projects. Whether you are developing a new product, improving an existing process, or building proprietary technology, IRAP can provide contributions to de-risk the project. Many AI projects that don't fit neatly into the AI Assist stream can still receive support through this broader program.
How Much IRAP Funding Can You Get?
IRAP does not publish fixed funding amounts the way some other programs do. The contribution you receive depends on the scope, complexity, and budget of your approved project. That said, here are realistic ranges based on publicly available information and common project profiles:
$50K–$100K+
Typical AI project
Mid-range AI adoption projects -- implementing ML models, building data pipelines, or deploying AI-powered automation -- commonly receive contributions in this range.
$10K–$50K
Smaller projects
Early-stage feasibility studies, proof-of-concept development, or smaller technology adoption initiatives often fall in this range.
Up to $1M+
Large R&D projects
Multi-year, high-impact R&D initiatives with significant commercial potential have received larger contributions, though these are less common and require substantial justification.
$20K–$30K
Youth Employment (YEP)
Wage subsidies for hiring post-secondary graduates into innovation-focused roles typically cover a portion of the salary for up to 12 months.
What costs are typically covered: Employee salaries (for staff directly working on the project), contractor and subcontractor fees, materials and supplies, certain capital equipment costs, cloud computing and software licensing, and travel costs directly related to the project.
What is typically not covered: General operating expenses, marketing costs, sales activities, ongoing subscription fees unrelated to the project, and capital expenditures that primarily serve non-project purposes.
The IRAP Application Process
One of the things that makes IRAP unique is that there is no traditional “application form” you fill out and submit online. The process is relationship-driven and iterative. Here is what to expect:
Contact NRC IRAP or be referred
You can reach out to IRAP directly through the NRC website, call the toll-free number (1-877-994-4727), or be referred by a partner organization such as a regional development agency, accelerator, or industry association. There is no formal application form at this stage -- it begins with a conversation.
Meet with an Industrial Technology Advisor
An ITA in your region will schedule an initial meeting (often virtual) to learn about your business, your innovation goals, and the project you have in mind. Think of this as a two-way discovery session. The ITA wants to understand your technical capabilities, market position, and where IRAP can add the most value.
ITA assesses your innovation potential
After the initial meeting, your ITA evaluates whether your project aligns with IRAP's mandate. They assess your company's innovation capacity, the technical merit of the proposed project, the potential commercial impact, and your team's ability to execute. This is not a pass/fail test -- it is an ongoing dialogue.
Develop a project proposal with ITA support
If your ITA sees strong alignment, they will work with you to develop a formal project proposal. This includes defining the project scope, milestones, budget, timeline, and expected outcomes. Your ITA will often help you strengthen the proposal, identify risks, and ensure it meets NRC's evaluation criteria.
Formal review and approval
The completed proposal goes through NRC IRAP's internal review process. A committee evaluates the project against program criteria, available budgets, and national innovation priorities. If approved, you will receive a contribution agreement outlining the funding amount, milestones, and reporting requirements.
Receive contributions during the project
Unlike some programs that provide a lump sum, IRAP typically disburses contributions as you complete project milestones. You submit periodic claims with supporting documentation (timesheets, invoices, progress reports), and IRAP reimburses eligible costs. Your ITA remains available throughout for ongoing advisory support.
Qyntral tip: Prepare before your first ITA meeting
The more prepared you are for your first ITA meeting, the stronger the impression you make. Our free assessment helps you articulate your AI readiness, identify your strongest project candidates, and understand which IRAP criteria your business already meets.
Common Mistakes That Hurt IRAP Applications
IRAP is a competitive program, and your ITA's assessment of your company and project matters enormously. Avoid these pitfalls that commonly weaken a company's chances:
Approaching IRAP without a defined project
ITAs want to discuss specific projects, not vague aspirations. "We want to use AI" is not enough. Come with a concrete idea: what problem you are solving, how AI fits, and what the expected business impact is. You do not need every detail, but a clear project concept signals seriousness.
Treating it like a passive grant application
IRAP is relationship-driven. Companies that engage actively with their ITA, ask questions, iterate on proposals, and follow up promptly tend to have much better outcomes than those who submit paperwork and wait passively for a response.
Underestimating the documentation requirements
IRAP requires detailed record-keeping throughout the project: timesheets, invoices, progress reports, and milestone documentation. Companies that fail to maintain proper records often face delays in receiving contributions or have claims rejected. Set up tracking systems from day one.
Not budgeting for the company's share of costs
IRAP typically funds a portion of project costs, not 100%. You need to demonstrate that your company has the financial capacity to cover its share. Applicants who present unrealistic budgets or assume IRAP will cover everything raise red flags with ITAs.
Failing to articulate the innovation component
IRAP funds innovation, not routine business improvements. If your project is simply purchasing off-the-shelf software with no customization, integration challenge, or novel application, it may not meet the innovation threshold. Frame your project in terms of technical uncertainty, new capabilities, or novel approaches.
Ignoring the commercialization angle
IRAP wants to see that the project will generate economic value for Canada. Companies that focus exclusively on internal benefits without addressing how the innovation will create revenue, jobs, or competitive advantage often receive lower priority. Make the business case explicit.
IRAP vs. CDAP (Closed): How They Compared
CDAP closed to new applications in February 2024. Its successor is the BDC Data to AI advisory program. For reference, here is how IRAP and CDAP compared when both were active:
| IRAP | CDAP (Closed Feb 2024) | |
|---|---|---|
| Administering body | NRC (National Research Council) | ISED (Innovation, Science and Economic Development) |
| Focus | Technology innovation & R&D | Broad digital adoption |
| Funding type | Non-repayable contributions | Grant + interest-free loan option |
| Typical amount | $50K-$100K+ (project-dependent) | Up to $15,000 grant |
| Employee limit | Fewer than 500 FTEs | 1-499 employees |
| Revenue requirement | No minimum revenue | $500K+ annual revenue |
| Advisory support | Dedicated ITA (ongoing) | Digital advisor (plan phase) |
| AI-specific stream | Yes (AI Assist) | No dedicated AI stream |
| Best for | R&D-intensive AI projects | General digital transformation |
Since CDAP is no longer accepting applications, IRAP is now the primary federal program for AI adoption and innovation funding. The BDC Data to AI advisory program has taken over CDAP's digital adoption mandate. Read about CDAP (closed) and its successor
Stacking: IRAP + SR&ED
One of the most powerful funding strategies for Canadian companies doing AI R&D is combining IRAP contributions with SR&ED (Scientific Research and Experimental Development) tax credits. This is entirely legitimate and encouraged by both programs, as long as you follow the rules.
The key rule: You cannot claim SR&ED tax credits on expenditures that were already funded by IRAP. However, you can claim SR&ED on the portion of your project costs that you paid out of pocket. Since IRAP typically covers a percentage of total project costs (not 100%), the remaining company-funded portion is often eligible for SR&ED.
Example: Suppose your AI project has $200,000 in eligible costs. IRAP contributes $80,000 (40%), and your company pays $120,000. You could then claim SR&ED on the $120,000 your company spent, potentially recovering an additional 35%+ through federal and provincial tax credits. That means your effective out-of-pocket cost could drop from $120,000 to roughly $78,000 -- and you received $80,000 from IRAP on top of that.
How to structure this properly:
Keep meticulous records of which costs were covered by IRAP vs. company funds
Ensure your project activities meet CRA's definition of SR&ED (systematic investigation, technological uncertainty)
Work with a qualified SR&ED advisor to prepare your claim
Inform your ITA that you plan to stack -- they can help structure the project accordingly
File your SR&ED claim within 18 months of your fiscal year-end
Stacking IRAP and SR&ED can reduce your net cost of AI innovation by 50-70%. It requires careful planning, but the financial impact is significant. Our free assessment evaluates your potential fit for both programs simultaneously. Read our full SR&ED guide
Ready to explore IRAP for your business?
Take our free 10-minute AI readiness assessment to understand where you stand, then book a discovery call to discuss how we can help.
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FAQ
Frequently Asked Questions About IRAP
Is IRAP funding a loan or a grant?
IRAP provides non-repayable contributions, meaning you do not need to pay the money back. It is not a loan. Funding is disbursed as contributions toward eligible project costs as the work progresses.
Can startups apply for NRC IRAP?
Yes. IRAP supports Canadian-incorporated businesses of all stages, from pre-revenue startups to established SMBs. Your company must have fewer than 500 full-time equivalent employees and be profit-oriented (incorporated, not a non-profit). Early-stage companies with strong innovation potential are frequently supported.
How long does the IRAP application process take?
There is no single application deadline -- IRAP accepts inquiries year-round. After your initial contact, the timeline depends on how quickly you can meet with an Industrial Technology Advisor (ITA) and develop your project proposal. Typically, the process from first contact to funding approval takes 2 to 6 months, though it varies by project complexity and regional office workload.
What costs does IRAP cover?
IRAP contributions can cover a range of project costs including salaries of employees working directly on the project, contractor and subcontractor fees, materials and supplies, and certain capital equipment costs. The specific eligible costs are determined during the project scoping process with your ITA.
Can I receive IRAP funding and SR&ED tax credits on the same project?
Yes, but not on the same expenses. You can claim SR&ED tax credits on the portion of eligible R&D expenditures that were not funded by IRAP. This is called stacking, and it is a legitimate and common strategy. Your ITA can help you structure the project so both programs are maximized without overlap.
What is the difference between IRAP and CDAP?
IRAP focuses on technology innovation and R&D, supporting projects that advance a company's technical capabilities including AI adoption. CDAP (Canada Digital Adoption Program) previously focused on broader digital transformation and provided up to $15,000 for digital adoption plans, but CDAP closed to new applications in February 2024. Its successor, the BDC Data to AI advisory program, now provides digital adoption support. IRAP remains active and can provide significantly higher funding (often $50K-$100K+) and pairs you with an Industrial Technology Advisor.
Does Qyntral guarantee IRAP eligibility or approval?
No. Qyntral's assessment identifies potential alignment between your business profile and IRAP criteria. Final eligibility and funding decisions are made solely by NRC IRAP. Our tool helps you understand whether applying may be worthwhile and prepares you with the information an ITA will ask for.
What is the IRAP AI Assist program?
AI Assist is an IRAP initiative that specifically supports Canadian SMBs in adopting artificial intelligence. It is part of the federal government's broader investment in AI and provides non-repayable contributions for AI-related projects, including AI tool implementation, machine learning model development, and data infrastructure upgrades. It operates under the same IRAP framework and eligibility criteria.
Disclaimer: The information on this page is provided for general informational purposes only and does not constitute legal, financial, or professional advice. Qyntral is not affiliated with, endorsed by, or officially connected to the National Research Council of Canada (NRC), IRAP, or any Government of Canada department. Program details, eligibility criteria, and funding amounts may change without notice. The information presented here is based on publicly available program descriptions as of early 2026 and may not reflect the most current program terms. Always consult the official NRC IRAP website or speak with an NRC representative for authoritative and up-to-date information. Qyntral's assessment identifies potential program alignment only. Final eligibility and funding decisions are made solely by NRC IRAP.