Training Tax Credits For Employers
Employers are eligible for refundable training tax credits through the Provincial and Federal government for each year of training for registered Apprentices.
The federal government also provides a non-refundable credit for Employers for the first 24 months of Red Seal apprenticeship programs.
- Learn more about the apprenticeship job creation tax credit
Employers are eligible to claim:
10% of wages up to a maximum of $2,000 per year for each Apprentice, for the first 24 months of registration
As an Employer, you will be able to claim the AJCTC on your individual income tax return, on line 412 – Investment tax credit, by filing Form T2038(IND), Investment Tax Credit (Individuals).
Also, any unused credit may be carried back 3 years and carried forward 20 years.
When two or more related Employers employ the same Apprentice, special rules apply to ensure that the $2,000 limit is allocated to only one Employer.
For more information visit CRA‘s website.
| Completion Tax Credit Level 3 | 15% of eligible salary and wages up to $2,500 |
| Completion Tax Credit Level 4 | 15% of eligible salary and wages up to $3,000 |
Employers are eligible to claim the Completion Tax Credit for each Apprentice that completes level three (3) of their technical training and Level 4 Certificate of Qualification with Red Seal Endorsement.
The Completion credit is based on the salary and wages you pay to an Apprentice in the 12 months prior to the Apprentice completing Technical Training Level 3 and Graduating from the Apprenticeship Program.
Required Documentation
- A copy of the Apprentice transcript from the ITA
- A copy of the Apprentice’s Certificate of Qualification with an (IP) Red Seal Endorsement
Claiming the Credit
You can claim more than one credit in a year for an Apprentice, provided they meet the requirements for each level in the year. The training tax credit is refundable, but must first be applied against total income tax payable.
Employers can claim these credits by completing British Columbia Training Tax Credit (Employers) form (T1014-1) and submitting it with their T1 Individual Income Tax Return.
You must claim the completion tax credit no later than 36 months after the end of the tax year in which the Apprentice completed the requirements for a tax credit level.
| Completion Tax Credit Level 3 | 50% of completion tax credit for level 4 up to $1500 |
| Completion Tax Credit Level 4 | 5.5% of eligible salary and wages paid up to $1000 |
Employers of Apprentices who are First Nations may also be eligible for additional tax credits
Required Documentation:
- A copy of the Apprentice transcript from the ITA
- A copy of the Apprentice’s Certificate of Qualification with an (IP) Red Seal Endorsement
- A copy of your Certificate of Indian Status card.
Claiming the Credit
You must claim the basic tax credit and enhanced basic tax credit no later than 36 months after the end of the tax year for which the eligible salaries and wages are paid.