What is Ontario apprenticeship training tax credit

Ontario apprenticeship training tax credit is a refundable tax credit to a corporation that provided a qualifying apprenceship for a student enrolled in a qualifying skilled trade.

 

What much is the credit?

The credit is equal to a specified percentage (35% to 45%) of the eligible expenditures incurred by the corporation for a qualifying apprenticeship. The maximum credit for each apprentice is $10,000 per year to a maximum of $40,000 over the first 48 months of the qualifying apprenticeship.

Eligibility

To be a qualifying apprenticeship, the apprenticeship must meet the following conditions:

  • the corporation has to have a permanent establishment in Ontario.
  • the apprenticeship must be in a qualifying skilled trade approved by the Ministry of Training, Colledges, and Universities in Ontario.
  • the corporation and the apprentice must be participating in an apprenticeship program which the training agreement has been registered under the Ontario College of Trades and Apprenticeship Act, 2009 or the Apprenticeship and Certification Act, 1998 or in which the contract of apprenticeship has been registered under the Trade Qualification and Apprenticeship Act.

Eligible expenditures are:

  • salaries and wages (including taxable benefits) to the apprentice
  • fees paid to an employment agency for the provision of services performed by the apprentice

 

 

 

 

Additional information