Training Tax Credits
for Employers 

Apprenticeship Training Tax Credits for Employers

The Provincial and Federal Government provide income tax credits for Employers of Apprentices registered with the Industry Training Authority (ITA) apprenticeship programs. For additional details and information please see the BC Government website.

Contact the JLATA office to get your Training Tax Credit report print out for each fiscal year of your Apprentice records to apply for your training tax credits.

Apprenticeship Job Creation Tax Credit

The Apprenticeship Job Creation Tax Credit (AJCTC) provides a non-refundable investment tax credit (ITC) equal to 10% of the eligible wages payable, up to a maximum of $2,000 per year for each Apprentice for the first two years of their apprenticeship training.

Apprenticeship Job Creation Tax Credit 10% of eligible salary and wages up to $2,000

Claiming the credit

If you are an employer, you will be able to claim the AJCTC on your individual income tax return, on line 41200 – Investment tax credit by filing form T2038(IND), Investment Tax Credit (Individuals).

Any unused credit may be carried back three 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

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.

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

Eligible Period

The eligible period is the period that ends at any time in a month that includes the Apprentice’s completion date, doesn’t exceed 12 months, and begins on or after January 1, 2007, to December 31, 2019. Budget 2020 proposes that the credit be extended until December 31, 2022.

Enhanced Tax Credit

An enhanced tax credit is available to Employers of Apprentices who are First Nations individuals if you:

  • Are entitled to a completion tax credit, or
  • Received the federal apprenticeship job creation tax credit for the year.

Eligible First Nations individuals are persons registered as Indians under the Indian Act (Canada).

Enhanced Tax Credit Amounts

Tax Credits Enhanced Tax Credit Total Maximum
Tax Credit
Federal Apprenticeship Job Creation
Tax Credit Year 1
5.5% of eligible salary and wages paid up to $1000 Up to $1000
Federal Apprenticeship Job Creation
Tax Credit Year 2
5.5% of eligible salary and wages paid up to $1000 Up to $1000
Completion Tax Credit Level 3 50% of completion tax credit for level 3 up to $1250 Up to $3750
Completion Tax Credit Level 4 50% of completion tax credit for level 4 up to $1500 Up to $4500

 

Claiming the Credits

You can claim more than one credit in a year as long as the Apprentice meets the requirements for each level in the year. The training tax credit is refundable but must first be applied against the total income tax payable.

Corporations can claim these credits by completing Schedule 428, British Columbia Training Tax Credit, and submitting it with their T2 Corporation Income Tax Return.

Individual Employers can claim these credits by completing the 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 and the enhanced completion tax credit no later than 36 months after the end of the tax year in which the employee completed the requirements for a tax credit level. 

Required Documentation 

If you’re claiming a completion tax credit, you may be required to provide:

  • A copy of your employee’s transcript from the ITA
  • A copy of the certificate your employee received if they are required to have graduated the program to be eligible for the tax credit

If you’re claiming an enhanced tax credit for your Apprentice, who’s a First Nations individual, you may be required to provide a copy of your Certificate of Indian Status card.

For more information, visit the BC Government website.

 

Example 1

Your Apprentice Jason is registered with the Industry Training Authority on June 16, 2011.  completes technical training level 3 in March 2014 and graduates (receives his Certificate of Qualification) in August 2015. You have a September 30 year-end.

You can claim the Federal Apprenticeship Job Creation Tax Credit for the first 24 months of the apprenticeship program and the following completion tax credit:

In your fiscal year:  You can claim: 
September 30, 2014
  • Level 3 completion tax credit for eligible salary and wages paid from April 2013 to March 2014
September 30, 2015
  • Level 4 completion tax credit for eligible salary and wages paid from September 2014 to August 2015

There is no level 3 tax credit for the September 2013 fiscal year because the level 3 completion requirements weren’t met until the September 2014 fiscal year.

There is no level 4 tax credit for the September 2014 fiscal year because the level 4 completion requirements weren’t met until the September 2015 fiscal year.

 

Example 2 

Your Apprentice, John, is a status Indian under the Indian Act.  John is registered as an Apprentice on January 9, 2011, completes Level 3 on November 15, 2013, and receives his Certificate of Qualification on January 28, 2015. Your year end is September 30.

You can claim the federal Apprenticeship Job Creation Tax Credit for the first 24 months of the apprenticeship program as well as the following  enhanced and completion tax credits:

In your fiscal year: You can claim: 
September 30, 2011
  • Enhanced tax credit for eligible salary and wages paid from January 9, 2011 to September 30, 2011
  • Federal apprenticeship job creation tax credit
September 30, 2012
  • Enhanced tax credit for eligible salary and wages paid from October 1, 2011 to September 30, 2012
  • Federal apprenticeship job creation tax credit
September 30, 2013
  • Enhanced tax credit for eligible salary and wages paid from October 1, 2012 to January 8, 2013 (the end of the 24 month period)
  • Federal apprenticeship job creation tax credit
September 30, 2014
  • Level 3 completion tax credit
  • Enhanced tax credit for eligible salary and wages paid from December 2012 to November 2013
September 30, 2015
  • Level 4 completion tax credit
  • Enhanced tax credit for eligible salary and wages paid from February 2014 to January 2015

 

Powering BC Through Excellence in Training

The Joint Line Apprenticeship Training Association has the managerial oversight for the program to assure Apprentices in the Powerline Technician Apprenticeship Program are provided the best training and learning experience within the trade.