What Can the Industrial Research Assistance Program Fund: Eligible Expenses and Coverage
The Industrial Research Assistance Program (IRAP) provides Canadian businesses with financial support to fuel technology-driven innovations. Managed by the National Research Council of Canada (NRC), IRAP helps small and medium-sized enterprises (SMEs) by sharing the costs of research and development (R&D) projects. This guide will detail the eligible expenses, funding amounts, and coverage scope under IRAP to help you plan your innovation projects effectively.
Program Funding Overview
IRAP is designed to support various stages of the innovation cycle by providing financial assistance to Canadian SMEs. With funding amounts reaching up to $10 million for larger R&D projects, IRAP aims to facilitate transformative growth within five years, significantly impacting the Canadian economy.
Funding Amounts & Rates
Maximum Funding: Up to $10 million per project
Funding Model: Non-repayable contributions covering a portion of eligible expenses
Percentage Coverage: Varies based on project specifics and assessment
Eligible Expenses
IRAP funding covers a comprehensive range of costs related to R&D projects. The program supports:
Salaries and Wages: Salaries for employees directly involved in the R&D project, including technical staff and project managers.
Contractor Fees: Costs for external consultants providing specialized expertise.
Equipment and Supplies: Expenses for equipment purchases or rentals necessary for project execution.
Travel Expenses: Costs related to project-specific travel, such as attending conferences or meetings.
Professional Services: Fees for legal, accounting, and patent services that directly support the project.
Ineligible Expenses
IRAP does not cover the following expenses:
Marketing and Sales Costs: Expenses related to the commercialization and promotion of products.
General Overhead: Indirect costs such as office rent or administrative salaries outside the project scope.
Non-R&D Activities: Activities not directly contributing to the research and development process.
Expense Documentation Requirements
To receive IRAP funding, companies must maintain accurate records of all project-related expenses. Required documentation includes:
Invoices and Receipts: Proof of purchase for equipment and services.
Payroll Records: Detailed records of employee hours and wages.
Contracts: Agreements with external consultants or service providers.
Examples of Funded Projects
IRAP has supported a wide variety of projects across different sectors. Examples include:
Technology Development: Creating new software solutions for the healthcare industry.
Product Improvement: Enhancing manufacturing processes for greater efficiency.
Innovative Research: Conducting exploratory research leading to new market opportunities.
Funding Disbursement & Claiming Process
Funding is disbursed through monthly reimbursement claims submitted to NRC IRAP. Companies must provide detailed documentation supporting each claim, and funds are released based on the assessment of these claims.
Stacking Rules
IRAP allows for stacking with other government funding programs, provided the total public funding does not exceed 75% of the project costs. Applicants must disclose all sources of funding to ensure compliance.
Real-World Budgeting Tips
Plan for Ineligible Costs: Allocate resources for costs not covered by IRAP, such as marketing expenses.
Optimize Eligible Expenses: Maximize funding by aligning project activities with eligible expense categories.
Prepare for Audits: Keep detailed records to facilitate potential audits by NRC IRAP.
Conclusion
Understanding what IRAP can fund is crucial for planning successful R&D projects. By aligning your project expenses with IRAP's funding scope, you can leverage this program to drive innovation and growth. For more information on applying, contact NRC IRAP directly.
