Stacking IRAP With Other Canadian Funding
Most Canadian tech companies combine several programs. The rules are simple in principle: declare all government assistance, respect the limits in each agreement, and don’t claim the same dollar twice.
Can you stack IRAP with other funding?
Yes, you can combine IRAP with other funding, but your contribution agreement sets limits on total government assistance for the project, and you must declare other assistance. IRAP also reduces the SR&ED expenditures you can claim on the same costs. Plan the combination with your ITA and accountant before the project starts.
What can IRAP be combined with?
Common combinations are SR&ED on costs IRAP didn’t cover, IRAP’s own youth hiring support, provincial programs, federal procurement such as Innovative Solutions Canada, and export support. Each has its own rules and eligible costs, so check them one by one and declare each to the others.
| Program | How it combines with IRAP | Watch for |
|---|---|---|
| SR&ED tax credits | Claim on eligible costs; IRAP assistance reduces qualified expenditures | Report IRAP to your accountant |
| IRAP youth hiring support | Separate IRAP support for hiring graduates aged 15 to 30 | Placement rules and eligibility |
| Provincial programs | Often combinable if declared | Stacking limits in each agreement |
| Innovative Solutions Canada | Government as first customer for your innovation | Separate program and rules |
| Export support | Market development rather than R&D | Different eligible costs |
How does SR&ED interact?
CRA says qualified SR&ED expenditures are reduced by government assistance received, receivable or reasonably expected, which includes IRAP contributions. So if IRAP reimbursed part of a salary, SR&ED can only apply to the rest (CRA assistance policy). Details are on IRAP vs SR&ED.
What is IRAP’s youth hiring support?
IRAP offers financial assistance to help small and medium-sized businesses hire young post-secondary graduates aged 15 to 30, for placements of 6 to 12 months at 30 or more hours a week. You access it the same way: connect with IRAP and work with an ITA (NRC IRAP funding to hire young graduates).
One register, every source.
A simple list of all your government funding prevents most stacking problems and makes every proposal faster.
How do stacking limits work?
Stacking limits cap the total government assistance a project can receive, as a share of its eligible costs. Your contribution agreement states the limit that applies. Declare every other source when you prepare the proposal and whenever new funding arrives, so NRC can confirm you stay within it. Federal procurement and export programs are in the Canadian Startups guide.
This page is general information, not financial or tax advice. Confirm details with your ITA and your accountant.
Frequently asked questions
Can I combine IRAP with other grants?
Yes, within the stacking limits in your contribution agreement, and only if you declare all other assistance.
Can I get IRAP and SR&ED together?
Yes, but IRAP assistance reduces the SR&ED qualified expenditures on the same costs.
What is a stacking limit?
A cap on total government assistance for a project, stated in your contribution agreement.
Does IRAP help with hiring graduates?
Yes. It offers youth hiring support for graduates aged 15 to 30, for 6 to 12 month placements.
Do I need to tell IRAP about provincial funding?
Yes. Declare all other government assistance for the project.
Can IRAP be used with Innovative Solutions Canada?
They are separate programs with their own rules; declare each to the other.
Sources & further reading
Program rules, timings and figures come from NRC and CRA pages, checked on the date shown. Your contribution agreement and ITA have the final word.