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Apprenticeship Job Creation Tax Credit (AJCTC)
Tax credit for hiring apprentices
Last Update: March 3, 2026
Funding available
$ 2,000
Timeline
- Open continuously
Location
Canada
Overview
Get a non-refundable tax credit equal to 10% of the salaries and wages paid to your apprentices from a Red Seal Trade, up to a maximum of $2,000/year for each apprentice.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Attract or retain talent
- Develop workforce skills
Eligible Funding
- Maximum amount : 2,000 $
- Up to 10% of project cost
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Construction
- Manufacturing
- Transportation and warehousing
Location
- Canada
Legal structures
- For-profit business
- Sole proprietorship
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Hiring and employing eligible apprentices in prescribed trades as part of a registered apprenticeship program.
Eligibility
Who is eligible?
- Employers who hire apprentices working in prescribed trades
- Companies employing individuals in trades listed as Red Seal Trades
Eligible expenses
- Salaries and wages payable to eligible apprentices employed in a prescribed trade during the first two years of their registered apprenticeship contract.
Eligible geographic areas
- Employers across Canada, including all provinces and territories, provided the apprenticeship contract is registered with a federal, provincial, or territorial government under an eligible program.
Additional information
- Any unused portion of the tax credit can be carried back three years or carried forward twenty years.
- If more than one related employer employs the same apprentice, special allocation rules ensure the $2,000 maximum is shared appropriately.
- The AJCTC can be claimed on individual or corporate tax returns using the appropriate forms (T2038(IND) for individuals and T2SCH31 for corporations).
- A list of prescribed trades eligible for the credit is available through the Red Seal Program.
Documents and links
Frequently Asked Questions about the Apprenticeship Job Creation Tax Credit (AJCTC) Program
Here are answers to the most common questions about the Apprenticeship Job Creation Tax Credit (AJCTC). This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Apprenticeship Job Creation Tax Credit (AJCTC)?
Get a non-refundable tax credit equal to 10% of the salaries and wages paid to your apprentices from a Red Seal Trade, up to a maximum of $2,000/year for each apprentice.
How much funding can be received?
Apprenticeship Job Creation Tax Credit (AJCTC) Funds up to 10% of admissible expenses, capped at $2,000 per project.
Who is eligible for the Apprenticeship Job Creation Tax Credit (AJCTC) program?
To be eligible for the Apprenticeship Job Creation Tax Credit (AJCTC) program, you must:
Must employ eligible apprentices in prescribed trades
Apprentices must be in the first two years of a registered apprenticeship contract
What expenses are eligible under Apprenticeship Job Creation Tax Credit (AJCTC)?
Hiring and employing eligible apprentices in prescribed trades as part of a registered apprenticeship program.
Who can I contact for more information about the Apprenticeship Job Creation Tax Credit (AJCTC)?
You can contact Canada Revenue Agency (CRA).
Where is the Apprenticeship Job Creation Tax Credit (AJCTC) available?
The Apprenticeship Job Creation Tax Credit (AJCTC) program is available across Canada.
Is the Apprenticeship Job Creation Tax Credit (AJCTC) a grant, loan, or tax credit?
Apprenticeship Job Creation Tax Credit (AJCTC) is a Tax Credits
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