Apprenticeship Job Creation Tax Credit (AJCTC)

• Non-refundable tax credit equal to 10% of eligible salaries and wages paid to each eligible apprentice.
• Maximum claimable amount of $2,000 per year for each eligible apprentice.
• Unused credits can be carried back 3 years and carried forward 20 years.
• If multiple related employers employ the same apprentice, the $2,000 annual limit applies collectively and must be allocated between them.

• The employer must hire an eligible apprentice working in a prescribed trade.
• The apprentice must be in the first two years of their apprenticeship contract.
• The apprenticeship contract must be registered with a federal, provincial, or territorial government under an apprenticeship program that certifies or licenses individuals in the trade.

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.

• 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.