Canadian Programs for Startups: SR&ED and IRAP

Canada offers several programs to support innovation in businesses, particularly for startups. Two key programs are the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program and the Industrial Research Assistance Program (IRAP). This page provides an overview of these programs and how startups can leverage them.

SR&ED Tax Incentive Program

1. Overview of SR&ED:

  • SR&ED is a federal tax incentive program designed to encourage Canadian businesses of all sizes, and in all sectors, to conduct research and development (R&D) in Canada.
  • It is one of the largest sources of federal government support for industrial R&D.

2. Eligibility and Benefits:

  • Companies can receive refunds or tax credits for expenditures on eligible R&D work.
  • Eligible work includes experimental development, applied research, and certain types of basic research.

3. How to Apply:

Industrial Research Assistance Program (IRAP)

1. Overview of IRAP:

  • IRAP is administered by the National Research Council of Canada (NRC).
  • It provides technical and business advisory services and potential funding to help Canadian small and medium-sized enterprises (SMEs) undertake technology innovation.

2. Eligibility and Support Offered:

  • Designed for SMEs looking to develop new technologies or to significantly improve existing ones.
  • Financial assistance, technical and business advice, and connections to other innovation resources.

3. Application Process:

SR&ED and IRAP are powerful tools available to Canadian startups and SMEs to support innovation and technological advancement. Understanding and accessing these programs can provide a significant boost in terms of funding and expert guidance.