Ontario apprenticeship training tax credit

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

The credit is equal to a specified percentage (25% to 30%) of the eligible expenditures incurred by the corporation for a qualifying apprenticeship. The maximum credit for each apprentice is $5,000 per year to a maximum of $15,000 over the first 36-month period of the qualifying apprenticeship.

For eligible expenditures incurred after March 26, 2009, the eligible percentage is increased (35% to 45%) and the maximum credit for each apprentice is $10,000 per year to a maximum of $40,000 over the first 48 month period 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. Keep a copy of the training agreement or contract of apprenticeship to support your claim.

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)