Apprenticeship Training Tax Credit
The Apprenticeship Training Tax Credit (ATTC) is a refundable tax credit available to employers who hire and train apprentices in certain skilled trades. The maximum credit available to employers is $5,000 per qualifying apprentice per taxation year.
The Benefit
The ATTC is a 25 per cent refundable tax credit on wages and salaries paid for the first 36 months of the apprenticeship program. To qualify, the wages and salaries must be paid after May 18, 2004 and before January 1, 2015. Smaller businesses with payroll cost not exceeding $400,000 in the previous taxation year are eligible for a higher credit rate of 30%. The maximum credit is $5,000 per qualifying apprentice per taxation year.
An eligible employer may claim a refundable tax credit from 25% to 30% of eligible expenditures paid for each qualifying work placement ending in the tax year. The formula required to calculate this tax credit plus a definition of eligible expenditures can be found in the Apprenticeship Training Tax Credit Information Bulletin.
The maximum tax credit is $5,000 per qualifying apprentice employed for the entire year. This credit may be claimed for each apprentice up to a maximum of $15,000 over a 36-month period.
Eligibility
Eligible to a business which hires and trains qualifying apprentices in certain skilled trades.
Eligible employers must:
- have a permanent establishment located in Ontario, and
- be subject to Ontario income tax, and
- incur eligible expenditures associated with hiring an eligible apprentice in a qualifying skilled trade.
Eligible employers must keep a copy of the training agreement or contract of apprenticeship.
Although members of a partnership may share the ATTC, limited partners are not entitled to this credit.
The tax credit can be claimed on the return of a person who died in the tax year.
Claim your tax credit on form ON479, Ontario Credits included in your federal income tax return.
Eligible corporations may claim this tax credit on Schedule 114 of their CT-23 or CT-8 tax return.
After May 18, 2004, this refundable tax credit is available for employers operating unincorporated businesses which employ apprentices in certain skilled trades during the first 36 months of an apprenticeship program.
Certain qualifying leading-edge technology apprenticeship work placements previously included in the Co-operative Education Tax Credit (CETC), will now be claimed under the ATTC.
How to Apply
Incorporated Business
To claim the ATTC, complete CT23 Schedule 114
and enter the amount on Line 203 and the total number of apprentices on Line 202 of the tax return.
Unincorporated Business
Claim your tax credit on form ON479, Ontario Credits included in your federal income tax return.
Additional Information
The Ministry of Training, Colleges and Universities provides tips on hiring an apprentice for your workplace.
