Government Grants & Tax Credits For Apprentices & Employers of Apprentices

Employer Incentives

Provincial

1. Apprenticeship Training Credit

The maximum provincial tax credit available to employers of apprentices has just been increased from $5,000.00 per qualifying apprenticeship per year to $10,000 per qualifying apprenticeship per year. Moreover, the credit – previously capped at a maximum of $15,000.00 over the first three years of an apprenticeship – has been extended and increased to a maximum of $ 40,000.00 over the first four years of an apprenticeship.

The Ontario credit is refundable which means that even if the employer has no Ontario tax payable, the credit will be paid to the employer in its entirety.

For additional details, Please see www.rev.gov.on.ca/en/bulletins/ct/3020.html

2. Apprenticeship Completion Grants

Grants of up to $1,000.00 per apprentice will be available to employers once an apprentice successfully completes training. (Details to be announced)

Federal

3. Apprenticeship Job Creation Tax Credit

The federal tax credit is a maximum of $2,000.00 per qualifying apprenticeship per year with respect to the first two years of the apprenticeship. The federal credit is only a non-refundable credit which means that it can only be used to reduce federal tax otherwise payable. If the credit exceeds the federal tax payable, the excess credit is not refunded but instead can be carried back and applied to reduce federal tax in any of the three previous years, or it can be carried over for up to twenty years to reduce future tax payable.

For additional details, please see www.cra-arc.gc.ca/whtsnw/pprntcshp-eng.html

 

Apprentice Incentives

Provincial

1. Ontario Loans for Tools Program

Apprentices in the construction trades are eligible to receive $400.00 towards the purchase of tools. This interest free loan is due and payable one year after completing the apprenticeship program.

For additional details, please see www.edu.gov.on.ca/eng/training/apprenticeship/loantool.html
.

2. Apprenticeship Income Support Grant

Grants of up to $1500.00 per term will be available to help apprentices with the cost of school if they are not eligible for employment insurance.

Certain requirements must be met:

• Apprentice must successfully complete in-school training
• Notification of non-EI eligibility received from Service Canada must be provided

OR

• Copies of Records of Employment (ROEs) for period preceding in school training must be provided showing insufficient hours

3. Certificate of Qualification (C of Q) Examination Preparatory Assistance

The Ministry of Training, Colleges, and Universities (MTCU) is considering an initiative which would support apprentice and Certificate of Qualification challenger success on the C of Q exam. The initiative involves the addition of up to five days of dedicated exam preparation content to the final level of apprenticeship classroom training. The cost of the additional week would be born by the MTCU. The C of Q exam would be delivered on the last day of the additional week.

The MTCU will pilot this initiative in January 2010 with six different trades and their respective training delivery agencies. General Carpentry has been selected as one of the pilot trades; therefore, the Local 27 Training Centre will be introducing the additional week during advanced level carpentry classes.

4. Back-to-Back Schooling

MTCU will be giving apprentices the choice to complete more of their in-school training up front if work placements are temporarily unavailable.

 

Federal

1. Apprenticeship Incentive Grant (AIG)

The AIG is a taxable cash grant of $1,000.00 per year or level, up to a maximum amount of $2,000.00 per apprentice. It is available to apprentices once they have completed their first and/or second year or level of an apprenticeship program in a designated Red Seal Trade.

Applications may be obtained at: www.servicecanada.gc.ca/apprenticeship

2. Apprenticeship Completion Grant (ACG)

The ACG is a taxable cash grant of $2,000.00 for registered apprentices who complete their apprenticeship training and obtain their journeyperson certification in a designated Red Seal trade.

Applications may be obtained at: www.servicecanada.gc.ca/apprenticeship

3. Tradesperson’s Tools Deduction

The Tradesperson’s Tools Deduction provides employed tradespersons with an annual deduction of up to $500.00 to help cover the cost of new tools necessary for their trade. The deduction applies to the total cost of eligible tools if:

• The total cost exceeds $1,000.00;
• The tools were purchased after May 1, 2006;
• The purchase was made by an employed tradesperson.

For more information see www.cra-arc.gc.ca/whtsnw/tls-eng.html