British Columbia training tax credit

You can claim a refundable tax credit if you are a taxable corporation with a permanent establishment in the province and you paid salary and wages to an employee who was registered in a prescribed program administered through the BC Industry Training Authority.

You can claim one or more of the following three credits in the year for each qualified employee:

1. Basic tax credit for non-Red Seal training programs;
2. Completion tax credit for both Red Seal and non-Red Seal training programs; and
3. Enhanced tax credit for First Nations individuals and persons with disabilities.

You can also claim these credits for former qualified employees for the time they were employed by you during an eligible period, even though they were no longer working for you when they completed a specific level of the apprenticeship program.

Basic tax credit

The basic tax credit is 20% of the salary and wages (net of designated assistance) that were paid to an employee who was in the first 24 months of a non Red Seal apprenticeship program in the tax year. The maximum basic tax credit you can claim is $4,000, per employee. This credit is not available to Red Seal trades and cannot be claimed if you are claiming the federal apprenticeship job creation tax credit for the same employee.

Before July 1, 2009, the basic tax credit was 10%, up to a maximum of $2,000 per employee.

Completion tax credit

The completion tax credit is 15% of the salary and wages (net of designated assistance) that was paid to an employee within the 12 month period ending on any day in the month that the employee completed level three or higher. The maximum completion tax credit you can claim is $2,500 per employee who has completed level three, and $3,000 per employee who has completed level four or higher. This credit applies to both Red Seal and non-Red Seal trades.

Enhanced tax credit

The enhanced tax credit applies to employees who are registered as Indians under the Indian Act or qualify for the disability amount on their income tax return. Do not claim the basic tax credit or the completion tax credit if you are claiming the enhanced tax credit as these credits are included in the calculation of the enhanced tax credits. An employer claiming the enhanced tax credit for a qualifying employee should only complete Part 3 when filing Schedule 428. The enhanced tax credits are as follows:

• for the first 24 months of a Red Seal program, 15% of the salary and wages (net of designated assistance) that was paid to an employee who was in the first 24 months of a Red Seal apprenticeship program in the tax year. The maximum tax credit you can claim is $1,000 per employee. You can claim this credit in addition to the federal apprenticeship job creation tax credit in respect of the same employee;
  
  Note
  For salary and wages paid on or after June 3, 2010, the enhanced tax credit rate for the first 24 months of a Red Seal apprenticeship program is reduced from 15% to 5.5%.
  
  
• for the first 24 months of a non-Red Seal program, 30% of the salary and wages that was paid to an employee who was in the first 24 months of a non-Red Seal apprenticeship program in the tax year. This amount is reduced by any assistance you received or were entitled to receive for this employee. The maximum tax credit you can claim is $6,000 per employee. This credit is not available to Red Seal trades and cannot be claimed if you are claiming the federal apprenticeship job creation tax credit in respect of the same employee.
  
  Note
  Before July 1, 2009, this enhanced tax credit was 15%, up to a maximum of $3,000 per employee.
  
  
• for level 3 or higher of a Red Seal or non-Red Seal program, 22.5% of the salary and wages that was paid to an employee within the 12 month period ending on any day in the month that the employee completed level three or higher. This amount is reduced by any assistance you received or were entitled to receive for this employee. The maximum tax credit you can claim is $3,750, per employee who has completed level three and $4,500, per employee who has completed level four or higher.
  

For the completion and enhanced tax credits, the salary and wages can be dually applied to overlapping periods when more than one level is completed during the tax year.

Claiming the credit

File a completed Schedule 428, British Columbia Training Tax Credit, with your return.

Corporations who are members of a partnership, other than specified members (such as limited partners), can each claim their share of the partnership's tax credit.

Special rules apply for related employers who wish to claim the training tax credit for the same employee.

For more information about these credits, see Part 9 of the British Columbia Income Tax Act.

On line 679 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the total amount of the credits you are claiming.

You must claim these credits no later than 36 months after the end of the tax year in which you paid the eligible salaries and wages.

Forms and publications

• Schedule 428, British Columbia Training Tax Credit
• Schedule 5, Tax Calculation Supplementary - Corporations
• CIT 013, Training Tax Credits for Employers

Government partners

• British Columbia (provincial site)