Ontario apprenticeship training tax credit

You can claim this refundable tax credit if you are a corporation that provided a qualifying apprenticeship at a permanent establishment in Ontario for an apprentice enrolled in a qualifying skilled trade.

The credit is equal to a specified percentage of the eligible expenditures incurred by the corporation for a qualifying apprenticeship.

• The credit is equal to a specified percentage (35% to 45%) of the eligible expenditures incurred by the corporation for a qualifying apprenticeship. The maximum credit for each apprentice is $10,000 per year to a maximum of $40,000 over the first 48 months of the qualifying apprenticeship.
• For eligible expenditures incurred before March 27, 2009, the eligible percentage is 25% to 30%. The maximum credit for each apprentice is $5,000 per year to a maximum of $15,000 over the first 36 months of the qualifying apprenticeship.
• If the qualifying apprenticeship straddles March 26, 2009, the maximum amounts are prorated.

Eligibility

To be a qualifying apprenticeship, the apprenticeship must meet the following conditions:

• the apprenticeship must be in a qualifying skilled trade approved by the Ministry of Training, Colleges and Universities (Ontario); and
• the corporation and the apprentice must be participating in an apprenticeship program in which the training agreement has been registered under the Ontario College of Trades and Apprenticeship Act, 2009 or the Apprenticeship and Certification Act, 1998 or in which the contract of apprenticeship has been registered under the Trades Qualification and Apprenticeship Act.

Eligible expenditures are:

• salaries and wages (including taxable benefits) paid to an apprentice in a qualifying apprenticeship; or
• fees paid to an employment agency for the provision of services performed by an apprentice in a qualifying apprenticeship.

Claiming the credit

To claim the credit, file a completed Schedule 552, Ontario Apprenticeship Training Tax Credit, with your return.

You must keep a copy of the training agreement or contract of apprenticeship to support your claim. If you have lost or misplaced this document, please request a copy from the apprentice or the Ontario Ministry of Training, Colleges and Universities (MTCU) if you are an original party to the contract.

If you are employing an apprentice who previously registered a contract with the MTCU, you must obtain a copy of the original contract of apprenticeship or training agreement from the apprentice, or obtain written consent from the apprentice before contacting the MTCU.

Note
If you are unable to provide this documentation upon request, your claim may be denied.

For more information on the credit, see the schedule and section 89 of the Taxation Act, 2007 (Ontario).

On line 454 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of the refundable credit you are claiming.

Forms and Publications

• Schedule 5, Tax Calculation Supplementary - Corporations
• Schedule 552, Ontario Apprenticeship Training Tax Credit

Government partners

• Ontario (Ministry of Revenue)
• Ontario (e-Laws)