Value: The tax credit is based on salaries and wages paid to an apprentice. Qualifying businesses can claim 25 per cent of eligible expenditures (30 per cent for small businesses) made during the first 36 months of an apprenticeship program that commenced on or after April 24, 2015. The maximum credit for each apprenticeship is $5,000 per year. The maximum credit over the first 36 month period of the apprenticeship is $15,000.
The apprenticeship training tax credit is a refundable tax credit. It is available to employers who hire and train apprentices in certain skilled trades during the first 36 months of an apprenticeship program that commenced on or after April 24, 2015.
For apprenticeship programs that commenced before April 24, 2015, for eligible expenditures incurred after March 26, 2009, the first 48 months of the apprenticeship program qualify for purposes of the tax credit.
- Have permanent establishments in Ontario
- Pay Ontario income tax
- Incur eligible expenses in training apprentices in certain skilled trades
- Must involve a qualifying skilled trade. See list here
- Salaries and wages, including taxable benefits (i.e., amounts generally reported on the apprentice’s T4 slip) paid or payable to an apprentice in a qualifying skilled trade for services performed by the apprentice for the corporation or unincorporated business
- Eligible expenditures also include fees paid or payable to an employment agency by a corporation or unincorporated business for services performed by the apprentice in a qualifying apprenticeship
Contact: Canada Revenue Agency | 1 800 959 5525