The program is administered by the Ministry of Training, Colleges and Universities through Employment Ontario and by the Canada Revenue Agency through the federal income tax system.

The Apprenticeship Training Tax Credit is a refundable tax credit for corporations and unincorporated businesses employing apprentices in certain skilled trades during the first 48 months of an apprenticeship program.

The tax credit is available to businesses that have permanent establishments in Ontario; are subject to Ontario income tax; and incur eligible expenditures in training apprentices in designated skilled trades.

In a taxation year, for each qualifying apprenticeship, an eligible employer may claim a refundable tax credit for eligible expenditures incurred after March 26, 2009, equal to the lesser of:

• 35 per cent (45 per cent for small businesses) of the eligible expenditures made in respect of that apprenticeship and
• $10,000
• Claim up to $10,000 each year to a total of $40,000 per eligible apprentice over the first four years of training.

For eligible expenditures incurred before March 27, 2009, an eligible employer may claim a refundable tax credit equal to the lesser of:

• 25 per cent (30 per cent for small businesses) of the eligible expenditures made in respect of that apprenticeship and
• $5,000.
• Claim up to $5,000 each year to a total of $15,000 per eligible apprentice over the first three years of training.

Qualifying Skilled Trade
A qualifying skilled trade is an apprenticeship trade that is regulated under the Apprenticeship and Certification Act, 1998, the Trades Qualification and Apprenticeship Act, or the Ontario College of Trades and Apprenticeship Act, 2009 and has been designated by the Minister of Finance.

Eligible Expenditure
Eligible expenditures are salaries and wages, including taxable benefits (i.e., amounts reported on the apprentice's T4 slip) paid or payable to an apprentice in a qualifying skilled trade for services performed by the apprentice for the corporation or unincorporated business.

Eligible expenditures also include fees paid or payable to an employment agency by a corporation or unincorporated business for services performed by the apprentice in a qualifying apprenticeship.

All eligible expenditures must be attributable to an Ontario permanent establishment.

Human Resources and Training

For more information on the apprenticeship program including apprenticeship trades, trade codes and how to register, please contact your local Ministry of Training, Colleges and Universities field office, or call 1 800 387-5656.

For general tax enquiries regarding this tax credit, taxpayers may contact the Canada Revenue Agency at:

• 1 800 959-5525 (English)
• 1 800 959-7775 (French)
• 1 800 665-0354 (TTY)

Or visit:
Canada Revenue Agency website: www.cra-arc.gc.ca/whtsnw/pprntcshp-eng.html
Ministry of Revenue website: www.rev.gov.on.ca/english/credit/attc

June 2010/AW