Top 9 Canadian Grants You Can Stack Together (Without Disqualifying Yourself)
Nine Canadian funding programs — SR&ED, IRAP, Mitacs Accelerate, OITC, Alberta IEG, Innovative Solutions Canada, FedDev Ontario, ACOA, and Ontario ORDTC — are explicitly designed or officially confirmed to stack without disqualifying each other. Ranked by how central each program is to a real funding stack, this list includes the government-assistance offset rules you must apply, three worked dollar examples, and the sequencing order that prevents you from accidentally shrinking one program's base by applying for another first.
What stacking actually means
Stacking = claiming multiple programs on the same project, applying each to different eligible expense dollars. Every program that counts as "government assistance" reduces the expenditure base the next program can claim on — so order and segmentation matter. This list ranks by stacking centrality, not by award size alone.
Who this list is for
You're spending real money on software, hardware, or life-sciences R&D but only claiming SR&ED. This list shows you the three to four additional programs that explicitly coordinate with SR&ED and explains the expense-segmentation rules so you don't reduce your federal credit by accident.
OITC and ORDTC are Ontario-only programs that layer on your federal SR&ED claim. Combined, a profitable Ontario CCPC can recover over 50 cents on every dollar of eligible R&D spending — but only if you apply them in the right order and understand the government-assistance reduction mechanics.
Alberta's IEG is an 8%/20% incremental credit that stacks with SR&ED on the same payroll. New R&D operations start at a $0 historical base, meaning your first year of qualifying salary spend may attract the full 20% enhanced rate — on top of SR&ED's 35% refundable ITC for CCPCs.
Mitacs Accelerate is purpose-built to sit alongside IRAP (salary vs. intern split) and SR&ED (your $7,500 partner contribution is SR&ED-eligible). If you're already doing IRAP-funded R&D and not running Mitacs interns in parallel, you're leaving a straightforward funding layer on the table.
ACOA (Atlantic) and FedDev Ontario (Southern Ontario) both explicitly confirm SR&ED compatibility on uncovered R&D expense categories. The combination of a repayable regional development contribution for commercialization costs plus SR&ED for the underlying R&D work is one of the most predictable stacking sequences in the catalog.
Already using one of these? See what pairs with it
As of October 23, 2026, SR&ED and the Industrial Research Assistance Program (IRAP) each pair with all eight other programs on this list, and the other seven pair with two to four. Pick the program you have and where you are: you get each partner, what it pays for, and the rule to watch.
You have IRAP. On this list, 3 more fit a company elsewhere in Canada.
- Tax credit · all of CanadaSR&EDPays for R&D wages, materials and contractors, claimed with your T2 corporate return.WatchMoney from your other program comes off this claim for the costs it paid.CRA, amounts to deduct:
Provincial and territorial assistance
andOther types of government assistance
- Grant · all of CanadaIRAPPays for wages of technical staff on R&D, and subcontractors, through an NRC advisor.WatchIf you claim SR&ED, leave the costs IRAP paid out of it.CRA, amounts to deduct from SR&ED costs:
Other types of government assistance
- Grant · all of CanadaMitacs AcceleratePays for a graduate intern's research project, run with a university supervisor.WatchPay your share of the Mitacs cost from private money, not from a government grant such as IRAP.Mitacs:
Private sector funds are funds that are not sourced from government aid.
- Grant or contract · all of CanadaInnovative Solutions CanadaPays for R&D that solves a federal department's posted challenge.WatchIf you claim SR&ED, leave the work ISC paid for out of it.CRA, amounts to deduct from SR&ED costs:
Other types of government assistance
andNon-government assistance and contract payments
- Tax credit · Ontario onlyOntario Innovation Tax CreditPays back part of your SR&ED work performed in Ontario.WatchIt comes off the costs your federal SR&ED claim is figured on.CRA, amounts to deduct:
Provincial and territorial assistance
- Tax credit, non-refundable · Ontario onlyOntario R&D Tax Credit (ORDTC)Lowers the Ontario tax you owe on SR&ED work done in Ontario.WatchIt comes off the costs your federal SR&ED claim is figured on.CRA, amounts to deduct:
Provincial and territorial assistance
- Repayable · Southern OntarioFedDev OntarioPays for projects to commercialize, scale up or improve productivity.WatchBudget it as a loan: it is paid back, with no interest.FedDev Ontario:
No-interest, repayable contributions
- Tax credit · Alberta onlyAlberta Innovation Employment GrantPays back part of your R&D wages and materials in Alberta.WatchIt comes off the costs your federal SR&ED claim is figured on.CRA, amounts to deduct:
Provincial and territorial assistance
- Repayable · Atlantic CanadaACOAPays for capital costs, training, marketing and productivity work.WatchBudget it as a loan: it is paid back, with no interest.ACOA:
Our repayable funding is interest-free and unsecured.
More for other regions
These are the nine we rank. See every program your company qualifies for
For dollar figures, run the stack check or the SR&ED calculator.
Every pairing, program by program
- SR&ED pairs with all eight others.
- IRAP pairs with all eight others. Five are regional: OITC, ORDTC and FedDev in Ontario, the IEG in Alberta, ACOA in Atlantic Canada.
- Mitacs Accelerate: SR&ED and IRAP.
- OITC: SR&ED, IRAP, ORDTC and FedDev Ontario.
- Alberta IEG: SR&ED and IRAP.
- ISC: SR&ED and IRAP.
- FedDev Ontario: SR&ED, IRAP and OITC.
- ACOA: SR&ED and IRAP.
- ORDTC: SR&ED, IRAP and OITC.
- None yet: start with SR&ED if you already do R&D, or IRAP if you want an advisor and money during the project.
A pairing counts when either program's "Stacks with" row in the list below names the other.
The 9 most stackable Canadian funding programs
SR&ED is the universal anchor of every R&D stack. Canada Revenue Agency's refundable investment tax credit — 35% for CCPCs on the first $6M in eligible expenditures (raised from $3M by Budget 2025) — formally coordinates with IRAP, Mitacs, OITC, Alberta IEG, FedDev, ACOA, and ISC. Almost every other program on this list explicitly names SR&ED as a compatible pairing.
| Attribute | Value |
|---|---|
| Amount | 35% refundable ITC for CCPCs (first $6M); 15% non-refundable for others |
| Deadline | File within 18 months of fiscal year-end |
| Approval rate | Entitlement — 90% accepted as filed (FY 2024–25) |
| Stacks with | All 8 other programs on this list |
Stack verdict: Apply for SR&ED on every project first — it is the mathematical denominator. Any government assistance you receive (IRAP funding, OITC credits, provincial grants) reduces your SR&ED Qualified Expenditure pool, so document all expense categories before accepting other funding. Filing Form T661 within the 18-month deadline is non-negotiable.
IRAP is the most frequently paired program in the catalog. NRC's Industrial Technology Advisors actively encourage SR&ED coordination: IRAP funds employee salaries on eligible R&D, while SR&ED covers the remaining expenditure pool after the IRAP contribution is deducted. Mitacs interns slot into a third payroll category, leaving all three claims on distinct expense lines.
| Attribute | Value |
|---|---|
| Amount | Typically $75,000–$200,000 for first-time SMEs; larger projects up to $10M |
| Deadline | Ongoing (rolling ITA engagement) |
| Approval rate | Moderate — ~34% of clients engaged received funding (FY 2024–25) |
| Stacks with | SR&ED, Mitacs, CanExport Innovation, provincial R&D credits |
Stack verdict: The IRAP–SR&ED pairing is the closest thing to a guaranteed stack in Canadian funding. IRAP funding received reduces your SR&ED Qualified Expenditure pool dollar-for-dollar, so the combined recovery is less than 35% + 100%, but it is still significantly higher than either program alone. Build your ITA relationship before submitting any formal application.
Key stacking rule
- IRAP contributions paid on project expenses must be deducted from SR&ED Qualified Expenditures in the same year
- IRAP and Mitacs can cover the same project but not the same employee's salary — split payroll categories clearly
- Contact your ITA before applying to Mitacs or regional programs to confirm expense segmentation
Mitacs Accelerate subsidizes graduate student and postdoctoral research talent: your $7,500 per internship unit (standard) brings a $15,000 research award. That $7,500 partner contribution is itself SR&ED-eligible. IRAP explicitly names Mitacs as a complementary program with no prohibited-overlap clause when expense categories are separated.
| Attribute | Value |
|---|---|
| Amount | $15,000 award/unit (standard), your cost $7,500; $20,000 for postdocs, your cost $10,000 |
| Deadline | Rolling — minimum 4–6 months per internship unit |
| Approval rate | High (>40%) — effective approval ~99% for qualified projects |
| Stacks with | SR&ED (your $7,500 is eligible), IRAP, NSERC Alliance |
Stack verdict: Mitacs is the lowest-overhead addition to an existing IRAP or SR&ED stack. The real work is finding a qualified academic supervisor and project fit before you submit. Once the relationship is in place, the application is straightforward and the approval rate reflects it. The $7,500 partner contribution being SR&ED-eligible makes it one of the few program costs that genuinely returns more than it costs.
Ontario's 8% refundable R&D tax credit applies to the same eligible Ontario expenditures as federal SR&ED — but the OITC credit counts as government assistance, reducing your federal SR&ED Qualified Expenditure pool. Despite this offset, the combined federal plus provincial recovery rate for an Ontario CCPC routinely exceeds 50% of eligible spending. OITC must be claimed before ORDTC (item 9).
| Attribute | Value |
|---|---|
| Amount | 8% refundable ITC on up to $3M eligible Ontario expenditures (max $240,000) |
| Deadline | File with Ontario corporate tax return (18-month rule mirrors SR&ED), alongside your SR&ED T661 |
| Approval rate | Entitlement for qualifying Ontario corporations |
| Stacks with | Federal SR&ED, ORDTC, IRAP, FedDev Ontario |
Stack verdict: Ontario R&D companies have a three-layer provincial stack available — federal SR&ED (35% refundable), then OITC (8% refundable), then ORDTC (3.5% non-refundable) — each applied to the adjusted expenditure base left by the prior credit. This is one of the most predictable recovery sequences in Canada for profitable Ontario CCPCs.
Alberta's IEG pays 8% on R&D employment spending at or below your two-year rolling average — and 20% on incremental spending above that average. For a company with no prior R&D history, the entire first year of qualifying payroll attracts the 20% enhanced rate. Like OITC, IEG counts as government assistance that reduces your federal SR&ED Qualified Expenditure base, but the net combined recovery exceeds SR&ED alone.
| Attribute | Value |
|---|---|
| Amount | 8% base / 20% enhanced rate on up to $4M annual eligible expenditures (max $800K/yr) |
| Deadline | File with Alberta corporate tax return |
| Approval rate | Entitlement for qualifying Alberta corporations |
| Stacks with | Federal SR&ED, IRAP (with budget coordination) |
Stack verdict: The 20% incremental rate for new R&D programs is IEG's standout feature. Alberta companies launching their first formal R&D function can recover up to 20 cents on every dollar of qualifying payroll at the provincial level, stacked on top of SR&ED's 35%. The combined first-year recovery rate — before any grants — can exceed 55% of eligible employment costs.
ISC's challenge-based procurement — Phase 1 up to $150,000, Phase 2 up to $1M — is explicitly designed to stack with SR&ED on uncovered R&D expenses. IRAP advisory services and complementary funding are compatible for different project phases. ISC funding received must be deducted from SR&ED Qualified Expenditures on the same project, but the combined non-dilutive recovery makes the sequence worthwhile.
| Attribute | Value |
|---|---|
| Amount | Phase 1: up to $150,000 ($300,000 in some cases); Phase 2: up to $1,000,000 ($2M in some cases) |
| Deadline | Challenge-specific (varies by issuing department) |
| Approval rate | Moderate — 20–40% per challenge |
| Stacks with | SR&ED (on uncovered expenses), IRAP advisory, CanExport Innovation |
Stack verdict: ISC's challenge-response format means success depends almost entirely on how directly you address every Essential Outcome in the challenge notice — not on your overall company quality. Companies that study the challenge document carefully before applying have meaningfully higher conversion. The SR&ED stack on uncovered expenses is straightforward because ISED's program officers are familiar with the pairing.
FedDev Ontario's Business Scale-up and Productivity program funds commercialization and scaling — the expenditure categories typically left unfunded after SR&ED and IRAP absorb the R&D payroll. The BSP stream is a 0% interest repayable contribution up to 50% of eligible project costs, not a non-repayable grant; understanding this distinction is essential for financial modelling a stack.
| Attribute | Value |
|---|---|
| Amount | BSP: $250,000–$750,000 typical (0% interest, repayable); RTRI: up to $3M non-repayable |
| Deadline | Rolling intake; one active application at a time across all FedDev programs |
| Approval rate | ~15–25% estimated (81 projects funded under BSP in 2023–24) |
| Stacks with | SR&ED (on R&D components not covered by FedDev), IRAP, CanExport SMEs |
Stack verdict: FedDev stacks cleanly with SR&ED because the two programs target different expense lines — FedDev covers commercialization and scale-up costs, SR&ED covers the underlying R&D. The highest-risk mistake is confusing BSP's repayable contribution with a non-repayable grant. Model the repayment schedule before accepting funding; the 0% interest rate is valuable but the obligation is real.
ACOA's Atlantic Innovation Fund (closed to applications as of October 23, 2026) and Business Development Program both explicitly confirm SR&ED compatibility on different expense categories. The typical Atlantic stack pairs ACOA (domestic business development and innovation) with SR&ED (R&D tax recovery) and CanExport SMEs (export market development), covering all three phases of a growth trajectory without overlap. Average ACOA project: approximately $295,000.
| Attribute | Value |
|---|---|
| Amount | $100,000–$500,000 typical BDP project; the Atlantic Innovation Fund is closed to applications (ACOA, checked October 23, 2026) |
| Deadline | Rolling intake; relationship-based intake process |
| Approval rate | High — ~1,260 projects/year approved with ~$294M a year (951 projects and $281M in 2024) |
| Stacks with | SR&ED, IRAP (different scales), CanExport SMEs, provincial Atlantic programs |
Stack verdict: ACOA is a relationship-first program — submitting a cold application without engaging your regional office first is the single most common avoidable failure. Call 1-888-576-4444 before preparing any documents. Once a relationship exists, ACOA explicitly works alongside SR&ED on the same project and provincial agencies such as NSBI, NBIF, and Innovate NL on complementary workstreams.
ORDTC is the third layer of the Ontario R&D stack: a 3.5% non-refundable credit on the SR&ED-eligible Ontario expenditure base after OITC has been applied. It is non-refundable, meaning it only offsets Ontario corporate tax payable — it has no value for companies in a loss position. For profitable Ontario companies, ORDTC is effectively free additional recovery on R&D the company is already undertaking.
| Attribute | Value |
|---|---|
| Amount | 3.5% non-refundable; $17,500 on $500K in eligible Ontario SR&ED |
| Deadline | File with Ontario corporate tax return (same 18-month window), alongside your SR&ED/OITC return |
| Approval rate | Near-entitlement for properly filed returns |
| Stacks with | Federal SR&ED, OITC (OITC claimed first, reduces ORDTC base) |
Stack verdict: ORDTC is frequently overlooked because the 3.5% rate sounds small. For a profitable Ontario corporation with $3M in Ontario SR&ED expenditures, ORDTC adds $105,000 in tax credits, filed alongside an existing SR&ED return. The ratio of recovery to incremental effort is among the highest of any program in this list.
Which of the nine stackable programs are actually grants?
Two of the nine are grants you apply for, plus Innovative Solutions Canada, which pays by grant or contract; four are tax credits you claim with your corporate return; two are repayable or loan-type money (GrantCompass catalogue and ISED, as of October 23, 2026). So grant stacking on this list really means mixing several kinds of money, and "stackable grants" is shorthand: the kind decides when you get it and whether it comes back.
- 2 grants
- 1 grant or contract
- 4 tax credits
- 2 repayable
| Program | What it is | How you get it |
|---|---|---|
| IRAP | Grant | Through an NRC industrial technology advisor |
| Mitacs Accelerate | Grant | Apply with a university researcher who supervises the intern |
| Innovative Solutions Canada | Grant or contract, set by each challenge | Bid on a federal department's posted challenge |
| SR&ED | Tax credit | Claim with your T2 corporate return |
| OITC | Tax credit, refundable | Claim with your corporate return |
| Alberta IEG | Tax credit, despite the name | Claim with your Alberta corporate return |
| ORDTC | Tax credit, non-refundable | Claim with your corporate return |
| FedDev Ontario | "No-interest, repayable contributions" | Apply to FedDev Ontario |
| ACOA | Repayable, "interest-free and unsecured" | Apply to ACOA |
A repayable contribution is a different decision from a grant. It has to be paid back, so it belongs in your cash plan as a loan with no interest, not as money you keep. The four tax credits are claimed after your tax year with your return, not applied for in advance, so they arrive last.
Sources: GrantCompass program records (kind of funding), checked October 23, 2026; ISED, Innovative Solutions Canada grant instructions, Call 004 ("challenges that use grants as the funding mechanism" and "contracts as the funding mechanism"); FedDev Ontario, "Funding for businesses in southern Ontario"; ACOA, Business Development Program; Government of Ontario, Ontario innovation tax credit. Read October 23, 2026.IRAP is the grant that pairs with the most programs here. See who IRAP funds and how to start
Three worked stack blueprints
These are illustrative dollar examples using program rules described above. Actual recoveries depend on specific project costs, corporate tax position, and expense segmentation decisions. Treat these as order-of-magnitude guides, not guarantees. Verify with your SR&ED consultant and ITA before submitting any application.
Blueprint 1 — The R&D Core Stack
SR&ED + IRAP + Mitacs · Best for: tech SME, $750K annual R&D budget, anywhere in Canada
Example recovery: $340,000–$400,000SR&ED (anchor): $500K in IRAP-uncovered eligible wages + $200K other eligible costs = $700K Qualified Expenditure. Federal ITC at 35% for a CCPC = $245,000 refundable.
IRAP (layer 2): $150K covering additional employee salaries on the same project (different expense dollars from the SR&ED claim) = $150,000 contribution grant.
Mitacs Accelerate (layer 3): Two interns × 2 internship units each = 4 IUs. Partner cost: $30,000 (4 × $7,500). Mitacs contribution: $30,000 (a $60,000 research award with your share). Your $30,000 partner cost is SR&ED-eligible, adding ~$10,500 to the refund.
Combined: $245,000 SR&ED + $150,000 IRAP + $30,000 Mitacs = ~$425,000 before SR&ED adjustment for IRAP assistance deduction. Post-adjustment estimate: $340,000–$400,000 net.
Illustrative. Based on program rules from CRA SR&ED guide T4088, NRC IRAP terms 2025, Mitacs program guide 2025.Blueprint 2 — The Ontario Scale-Up Stack
SR&ED + OITC + ORDTC + FedDev Ontario · Best for: Ontario CCPC, $2M R&D spend, profitable, scaling product
Example recovery: $800,000–$1,000,000Federal SR&ED: $2M in eligible Ontario expenditures × 35% refundable ITC for CCPC = $700,000 federal refund (before OITC assistance reduction).
OITC (layer 2): $2M eligible × 8% = $160,000 Ontario refundable credit. OITC counts as government assistance; reduces federal SR&ED Qualified Expenditure pool by $160,000 in the subsequent year.
ORDTC (layer 3): Applied to remaining OITC-adjusted Ontario base (~$1.84M) × 3.5% = ~$64,400 non-refundable credit against Ontario corporate tax.
FedDev Ontario BSP (layer 4): Commercialization costs not covered by SR&ED (marketing, sales headcount, equipment) = $500,000 contribution at 0% interest (repayable). The commercialization expense categories are outside SR&ED's eligible cost definition, so no government-assistance offset applies to the R&D credits.
Combined non-repayable recovery: approximately $924,400 (SR&ED + OITC + ORDTC). Plus $500,000 in 0%-interest repayable FedDev funding. Verify OITC reduction impact on SR&ED with your tax advisor.
Illustrative. CRA T4088 guide, Ontario CT23 guide, FedDev Ontario BSP terms 2025.Blueprint 3 — The Atlantic Growth Stack
SR&ED + ACOA + Mitacs · Best for: Atlantic Canada CCPC, R&D-active, targeting national market expansion
Example recovery: $420,000–$520,000 + $295,000 ACOAFederal SR&ED: $800K in eligible R&D wages and materials × 35% CCPC enhanced ITC = $280,000 refundable federal credit (before ACOA assistance deduction on any covered expenses).
ACOA BDP (layer 2): Business development project — market expansion and technology demonstration costs excluded from SR&ED eligible categories. Average project ~$295,000. ACOA explicitly confirms SR&ED compatibility when expense categories are distinct.
Mitacs Accelerate (layer 3): One intern × 2 units = $15,000 Mitacs contribution. Partner cost $15,000, which is SR&ED-eligible, adding ~$5,250 to the federal refund.
Combined: $285,250 SR&ED + $295,000 ACOA + $15,000 Mitacs = ~$595,250 combined recovery and funding. ACOA portion subject to project approval and relationship engagement.
Illustrative. CRA T4088, ACOA BDP program terms 2025, Mitacs Accelerate guide 2025.Outside Ontario, Alberta and Atlantic Canada: your provincial layer
The federal pair, SR&ED and IRAP, works in every province, as of October 23, 2026. What changes by province is the provincial R&D tax credit that plays the part OITC plays in Ontario or the Innovation Employment Grant plays in Alberta, and the regional development agency that plays FedDev Ontario's part.
Whole stacks by province: the Quebec, Alberta and Ontario grant stacking blueprints. In New Brunswick and Nova Scotia, the provincial credit sits beside ACOA. Rates in detail: SR&ED tax credit rates by province.
The regional agency in FedDev Ontario's place
Alberta, Saskatchewan or ManitobaPrairiesCan
British ColumbiaPacifiCan
QuebecCED Quebec
How to stack without disqualifying yourself
The phrase "stacking rules" covers two separate concepts that frequently get conflated. The first is the government-assistance offset: any cash grant or tax credit you receive counts as government assistance and reduces the expenditure base the next credit can claim on. This does not disqualify you — it simply adjusts the numbers. The second, rarer concept is an explicit prohibition: some programs forbid simultaneous claims on the same expense dollar. Most programs in this list do not have explicit prohibitions; they have offsets.
Expense segmentation is the practical solution to both. SR&ED funds R&D wages and materials. IRAP funds additional R&D wages on a different employee set or a different phase. FedDev and ACOA fund commercialization costs that are outside SR&ED's eligible expense definition entirely. CanExport funds international market development activities that neither SR&ED nor ACOA touches. When each program sits on its own distinct expense category, the government-assistance offset still applies, but the combined recovery is highest.
Sequencing also matters because government-assistance offsets apply in the fiscal year the assistance is received, not when you apply. If you receive an IRAP contribution in Year 1, it reduces your Year 1 SR&ED Qualified Expenditures. Planning the timing of funding receipts — and which fiscal year each claim lands in — can meaningfully change your net recovery. Most companies do not model this until they have an SR&ED consultant and an ITA working together, which is the right time to get into the arithmetic.
One reliable signal that a stacking plan is well-structured: your ITA (for IRAP) and your SR&ED consultant have both reviewed the budget segmentation before any application is filed. Both parties are familiar with the combined structure. IRAP ITAs in particular are experienced at validating that an IRAP-plus-SR&ED plan is appropriately designed. Starting that conversation early — not after you have accepted an IRAP contribution — is the single most effective risk-mitigation step available.
Money founders add to a funding stack that is not on this list
A funding stack can carry money for work that is not R&D. As of October 23, 2026, four programs outside the nine pay for export trips, equipment and property, tariff recovery in southern Ontario, and new hires. Each is a different kind of money, so check the kind before you count it.
| Program | What it pays for | Kind |
|---|---|---|
| CanExport SMEs | Entering a new international market: travel, trade shows, marketing | Grant, taken in set intake periods |
| Canada Small Business Financing Program | Equipment, vehicles, property and leasehold improvements | Loan |
| FedDev Ontario tariff response (RTRI) | Liquidity and pivot projects for southern Ontario businesses hit by tariffs | Non-repayable |
| Hiring wage subsidies | Part of a new employee's wage | Varies by program |
- Goes in your cash plan: a loan or a repayable contribution
- Lowers what the work costs: a grant or a tax credit
How each kind combines with the others is set out under Stacking Rules by Funding Type in our grant stacking guide.
Sources: GrantCompass program records for CanExport SMEs, the Canada Small Business Financing Program and the RTRI non-repayable stream, checked October 23, 2026.Questions about using these together
Short version: you can hold IRAP and SR&ED together. IRAP money on a cost comes off the SR&ED claim for that cost, and the rest of the claim stays.
Can IRAP and SR&ED be combined?Yes, minus IRAP-paid costs
Yes, and SR&ED shrinks only on the costs IRAP paid for. As of October 2026, CRA lists "Other types of government assistance" among the amounts you deduct when you work out SR&ED qualified expenditures, so IRAP money on a wage comes off that wage. Costs IRAP did not pay stay in the claim, and you keep both programs.
IRAP or SR&ED first?Usually both
Usually both, so the order is about timing. Talk to an IRAP industrial technology advisor while you plan the project; SR&ED is claimed after your tax year, with your T2 corporate return, on the costs IRAP did not pay. The full comparison is in IRAP vs SR&ED.
Can Mitacs interns sit on an IRAP project?Keep the costs apart
The list above names them as partners on one R&D program. Keep the costs apart: Mitacs funds an intern's research project with a university supervisor, and IRAP funds your own technical staff's wages. We hold no funder sentence on one salary drawing on both, so confirm the split with your IRAP advisor. More in IRAP vs Mitacs.
Is FedDev Ontario money a grant?Mostly repayable
Mostly not. FedDev Ontario describes its business funding as "No-interest, repayable contributions from $125,000 up to $10 million per project". Its Regional Tariff Response Initiative has a non-repayable stream for southern Ontario businesses hit by tariffs. Count the repayable kind as a loan with no interest.
Is there a limit on how much government money one project can take?Each funder sets its own
Each funder sets its own, where it has one. CanExport Innovation's applicant guide says "Canadian government assistance must not exceed 75%", and it adjusts its funding to stay under that limit. Our grant stacking guide explains stacking limits and how to check yours.
What’s Changed in 2026
- SR&ED enhanced-rate expenditure limit raised to $6M (Budget 2025). The previous $3M cap on the 35% refundable enhanced ITC for CCPCs was doubled to $6M, effective for taxation years ending on or after Budget Day 2025. The maximum annual enhanced credit is now $2.1M per year (35% × $6M). Stacking plans should be re-modelled against the new cap if your eligible R&D spend exceeds $3M annually. Source: Budget 2025 — Chapter 1: Canada's Economic Plan
- IRAP-specific advisory services extended to 2026–27 cycle. NRC confirmed continuation of IRAP Industrial Technology Advisor coverage through the current fiscal cycle with no announced structural changes to the program's stacking compatibility rules with SR&ED, Mitacs, and CanExport. Source: NRC IRAP — program updates, April 2025
- Mitacs Accelerate 2025 refresh: $15,000 per standard unit maintained. Mitacs confirmed the per-internship-unit value for industry partners is unchanged at $15,000 (standard) and $20,000 (postdoc) for the 2025–26 academic year. Partner contribution of $7,500 per standard unit remains SR&ED-eligible. Source: Mitacs Accelerate guide 2025–26
- FedDev Ontario RTRI stream opened for tariff-impacted businesses (2025). The new Regional Tariff Response Initiative (RTRI) non-repayable grant — now up to $3M for businesses impacted by US-Canada trade tensions — is explicitly stackable with SR&ED on R&D expense categories not covered by the RTRI award. Unlike BSP, RTRI is non-repayable. Applications are open: FedDev Ontario's site says "Apply now" for the expanded RTRI (read October 23, 2026). Source: FedDev Ontario — RTRI program announcement, 2025
- Ontario ORDTC: no rate change in 2026 provincial budget. The 3.5% non-refundable ORDTC rate was maintained without change in Ontario's 2025 and 2026 provincial budgets. OITC's 8% rate and $3M expenditure cap were also unchanged. Ontario companies modelling a three-layer provincial R&D recovery can continue to use 8% + 3.5% as their planning figures. Source: Government of Ontario — 2025 Budget: Building Ontario