Ontario Chamber Report

Tax Credits for Apprenticeship Training and Co-operative Education

You can develop young people for the workforce and get credit for your efforts. The provincial government has in place both an enriched Apprenticeship Training and Co-operative Education Tax Credits. As a result of the Ontario Chamber of Commerce (OCC) lobbying, these credits are now more cost-effective and accessible to small and medium businesses.

The credit was recently enriched, so that now 45% of expenses related to apprenticeships (up from 30%) and 30% of expenses related to co-op placements (up from 15%) can be claimed by small businesses. Organizations with payrolls of $400,000 or less are considered to be small businesses for the purpose of the credits. The percentage a business is entitled to decreases gradually and is capped at 35% for apprenticeships and 25% for co-ops for businesses with payrolls over $600,000.

The credit can be claimed by both incorporated and unincorporated businesses. Eligible corporations claim the Apprenticeship Training Tax Credit on Schedule T2SCH552 of their T2 Corporation Income Tax Return, and claim the Co-operative Education Tax Credit on Schedule T2SCH550 of their T2 Corporation Income Tax Return. Eligible employers operating unincorporated businesses claim both credits on Form ON479, ‘Ontario Credits’ included in their personal income tax return.

Increasing the profile of apprenticeship training in the province continues to be a top priority for the OCC. Enabling greater participation in apprenticeship programs is a much-needed step towards addressing Ontario’s growing skilled trade shortage to create more opportunities for Ontario’’s skilled workforce and facilitate Ontario’s transition to the new economy.