Do you hire apprentices? If yes, did you know there are specific grants and credits you could receive just for doing that?
Here are 3 things you need to know about apprenticeship hiring credits.
1. What are the grants and credits?
Apprenticeship Job Creation Tax Credit
– This is a non-refundable investment tax credit equal to 10% of eligible salaries and wages
– An employer can claim up to $2,000 a year per eligible apprentice
Certain provinces also offer provincial support for employers. Please contact EVAMAX for more information regarding types of apprenticeship grants.
Ontario Apprenticeship Training Tax Credit
– Employers can claim up to 25% of eligible expenditures and 30% of expenditures for small businesses
– The maximum credit an employer can receive for each apprenticeship is $5,000 a year
B.C. Training Tax Credit
– This program offers refundable income tax credits for businesses that employ apprentices
– Sole proprietors, partnerships and corporations are all eligible for this tax credit
– There are three main elements:
o Basic credit for up to $4,000 for the first 24 months of non-Red Seal training programs
o Completion credit for between $2,500 and $3,000 for higher levels of Red Seal and non-Red Seal training programs
o Enhanced Credit for up to $2,000 for First Nations individuals and people with disabilities
Apprentices themselves too can also apply for grants while they finish their training
Apprenticeship Incentive Grant
– This grant helps apprentices pay for their expenses while they train as an apprentice in a designated Red Seal trade
– The AIG is a taxable grant worth $1,000
– It is awarded to registered apprentices
– An apprentice can apply for this grant twice during their training
2. How can you assess your eligibility?
– You can see which grants apply to your business by following the eligibility criteria for all of the following grants:
3. How can you apply?
– You can apply for these grants and credits as an employer as a part of your T2 Corporate Tax Filing.
– You can also find additional information here about the applications for each grant:
o Ontario Apprenticeship Training Tax Credit
For any additional questions regarding grants and tax credits, please contact EVAMAX.