Value: 25% of eligible expenditures, up to $3000 per placement.
The Co-operative Education Tax Credit is a refundable tax credit. It is available to employers who hire students enrolled in a co-operative education program at an Ontario university or college.
Ontario businesses that hire students enrolled in a post-secondary co-operative education program.
A qualifying co operative education program is an educational program or course of study that formally integrates students’ academic studies with work placements.
- For an educational program other than an internship program:
- Each work component must be at least 10 consecutive weeks and the student is required to finish 50% of the work components to complete the educational program
- The total time spent in the work components is not more than 75 per cent of the total time spent in required academic study, and
- The total time for mandatory work components must be at least 30 per cent of the total time spent in required academic study
- If the educational program is an internship program:
- There is an optional work component of at least eight consecutive months but not more than 16 consecutive months, and
- The total time spent in the work component is at least 30 per cent and not more than 75 per cent of the time spent in required academic study
- All optional work placements must be completed before the start of the final academic term and must be recorded in the student’s transcripts
- The educational program provides credit towards a post secondary degree, diploma or certificate by an eligible educational institution
- The appropriate governing body for the eligible educational institution, through its authorized delegate, has provided to the Minister of Finance, or to his or her delegate, a list of programs that meet the requirements listed above
- Salaries and wages including taxable benefits (i.e., the amounts reported on the T 4 slip) paid or payable to the student for the placement. The student’s salary must be attributable to an Ontario permanent establishment (place of business)
- Fees paid or payable to an employment agency for the work placement for services of a student carried out primarily at an Ontario place of business
Contact: Canada Revenue Agency | 1 800 959 5525