1. Apprenticeship Training Credit
The maximum provincial tax credit available to employers of apprentices has just been increased from $5,000.00 per qualifying apprenticeship per year to $10,000 per qualifying apprenticeship per year. Moreover, the credit – previously capped at a maximum of $15,000.00 over the first three years of an apprenticeship – has been extended and increased to a maximum of $ 40,000.00 over the first four years of an apprenticeship.
The Ontario credit is refundable which means that even if the employer has no Ontario tax payable, the credit will be paid to the employer in its entirety.
For additional details, Please see www.rev.gov.on.ca/en/bulletins/ct/3020.html
2. Apprenticeship Completion Grants
Grants of up to $1,000.00 per apprentice will be available to employers once an apprentice successfully completes training.
3. Apprenticeship Job Creation Tax Credit
The federal tax credit is a maximum of $2,000.00 per qualifying apprenticeship per year with respect to the first two years of the apprenticeship. The federal credit is only a non-refundable credit which means that it can only be used to reduce federal tax otherwise payable. If the credit exceeds the federal tax payable, the excess credit is not refunded but instead can be carried back and applied to reduce federal tax in any of the three previous years, or it can be carried over for up to twenty years to reduce future tax payable.
For additional details, please see www.cra-arc.gc.ca/whtsnw/pprntcshp-eng.html