Financial Incentives, Assistance and Apprenticeship Tax Credits

To view or download a summarized, printable version of the information below, click here. If you want to learn more details about the different incentives the government offers, please click here to find and call your local MTCU office in your area.



Financial Incentive/Assistance for Employers


Apprenticeship Completion Grant: a $2,000 taxable cash grant for apprentices who complete their apprenticeship training and obtain Red Seal endorsement or a provincial or territorial Certificate of Qualification in a designated red seal trade

Apprenticeship Completion Grant non Red Seal Trades: The Apprenticeship Completion Bonus in non-Red Seal Trades is a taxable cash grant of $2,000 per registered apprentice after they successfully complete their apprenticeship training and obtain certification in a non-Red Seal trade, on or after April 1, 2009. The goal of the program is to encourage the apprentice’s progression through the technical and on-the-job training requirements culminating in certification. What is a non-Red Seal trade program? A non-Red Seal trade is an Ontario approved trade that is not part of the Federal Government’s Red Seal program for trades. Red seal trade.

Apprenticeship Incentive Grant (AIG): the AIG is a taxable cash grant of $1,000 per year for registered apprentices once they have successfully completed their first or second year/level (or equivalent) of an apprenticeship program in one of the red seal trades.

Apprenticeship Job Creation Tax Credit (AJCTC): a non-refundable tax credit equal to 10% of the salaries and wages paid to apprentices employed after May 1, 2006 in a red seal trade. The maximum credit is $2,000 per year for each eligible apprentice for the first two years.

Apprenticeship Training Tax Credit (ATTC): encourages the hiring of apprentices in certain skilled trades. The ATTC complements other apprenticeship program measures to help increase the availability of skilled workers in key sectors of the economy. An employer would be eligible for a tax credit of up to $10,000 per year per eligible apprentice to a maximum of $40,000 over the first 48 months of the apprenticeship. The maximum annual tax credit of $10,000 would be pro-rated for the number of days the apprentice is employed with that employer during the year.  Click here for a list of trades eligible for the Apprenticeship Training Tax Credit as listed on the Ministry of Finance Website

Apprenticeship Scholarship/ Signing Bonus (AS/SB): a $2,000 Apprenticeship Signing bonus (2 payments of $1000) for employers that hire eligible people entering into apprenticeships and requiring skills upgrades

Ontario Co-operative Education Tax Credit: a refundable tax credit available to employers that hire students enrolled in recognized Ontario University or College Co-operative education programs. Up to $3000.00 max per student per work term. Note: certain innovative apprenticeship work placements that we previously included in this credit are now claimed under the Apprenticeship Training Tax Credit. This tax credit is administered through the Canadian Revenue Agency (CRA) on behalf of the Ontario through the federal income tax system.

Job Connect: Please note, as of August 1st 2010 most Job Connect offices are now part of the Employment Ontario Employment Services network offering a full range of employment services. Click this link for an employment service delivery site in your community.

Targeted Wage Subsidy: As of August 1st 2010 The Targeted Wage Subsidy program is no longer being offered; these kinds of services can now be obtained through Employment Ontario Employment Service providers Click this link to find an Employment Service delivery site in your community.


Financial Incentive/Assistance for Job Seekers


NEW Tuition Tax Credit for Certification Exam Fees Budget 2011 extended eligibility for the Tuition Tax Credit to all occupational, trade and professional examination fees, where the examination is required to obtain a professional status, or certification or licence in a trade, that is recognized by federal or provincial statute and allows the individual to practise the profession or trade in Canada.

Apprenticeship Completion Grant: a $2,000 taxable cash grant for apprentices who complete their apprenticeship training and obtain Red Seal endorsement or a provincial or territorial Certificate of Qualification in a designated red seal trade

Apprenticeship Incentive Grant (AIG): the AIG is a taxable cash grant of $1,000 per year for registered apprentices once they have successfully completed their first or second year/level (or equivalent) of an apprenticeship program in one of the red seal trades

Loans for Tools: a program offering new apprentices a loan to assist in the purchase of the tools and equipment required of the trade

Employment Insurance: provides temporary financial assistance for unemployed Canadians while they look for work or upgrade their skills

Targeted Wage Subsidy: As of August 1st 2010 The Targeted Wage Subsidy program is no longer being offered; these kinds of services can now be obtained through Employment Ontario Employment Service providers Click this link to find an Employment Service delivery site in your community.

Ontario Student Assistance Program (OSAP): OSAP provides eligible Ontario students with financial assistance to help pay for their tuition, books, mandatory fees, living costs and transportation

Apprenticeship Scholarship/ Signing Bonus (AS/SB): a $1,000 Apprenticeship Scholarship for youth entering into apprenticeships and requiring skills upgrades

Job Connect: Please note,As of August 1st 2010 most Job Connect offices are now part of the Employment Ontario Employment Services network offering a full range of employment services. Click this link for an employment service delivery site in your community.

Self Employment Benefit: provides unemployed people who are or have recently been eligible for Employment Insurance with income and entrepreneurial support while they develop and start their business

The Holmes Foundation:  the mission of The Holmes Foundation is to ensure that all residential renovation and construction in Canada is done right–the first time; the foundation supports the training of youth in the skilled trades, through apprenticeships, scholarships and bursaries.




There has been a number of changes to the Grants and Tax Credits. We are doing our best to stay current and accurate.

 

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