How much funding can be received?

Funds up to 10% of admissible expenses, capped at $2000 per project.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the Apprenticeship Job Creation Tax Credit (AJCTC)?

Apprenticeship Job Creation Tax Credit (AJCTC) is funded by Canada Revenue Agency (CRA), Government of Canada

What are Apprenticeship Job Creation Tax Credit (AJCTC)'s eligibility criterias?

The business must hire an eligible apprentice working in a Red Seal trade within the first two years of their apprenticeship contract. The apprentice's employment must be registered under a federal, provincial, or territorial apprenticeship program.

Apprenticeship Job Creation Tax Credit (AJCTC)

grant_single|update February 27, 2025

Canada

Tax credit for hiring apprentices

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grant_single|openingDate November 14, 2019

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Tax Credits

grant_single|eligibleIndustries

Construction
Manufacturing
Transportation and warehousing

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Canada Revenue Agency (CRA)
Government of Canada

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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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This grant provides a financial incentive for employers to hire apprentices, facilitating skill development and employment growth in designated trades. The modalities are structured to support eligible employers effectively.

A non-refundable investment tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices.
Maximum credit available of $2,000 per year for each eligible apprentice hired.
Unused credits can be carried back for 3 years or carried forward for 20 years, offering flexibility in financial planning.
Specific allocation rules apply if multiple related employers claim the credit for the same apprentice to ensure the credit does not exceed the set limit.

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grant_single|admissibleProjectsExample

$ 2,000

Launching a Red Seal electrical apprenticeship program

$ 2,000

Implementing a new welding program to train Red Seal apprentices

$ 2,000

Setting up an HVAC apprenticeship program for Red Seal certification

$ 2,000

Developing an automotive service technician apprenticeship program for Red Seal certification

$ 2,000

Creating a carpentry apprenticeship program for Red Seal certification

$ 2,000

Establishing a culinary apprenticeship program for Red Seal chefs

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An employer must meet certain criteria to qualify for the Apprenticeship Job Creation Tax Credit.

The employer must hire an eligible apprentice, defined as someone 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 designed to certify or license individuals in the trade.
The trades must be listed as Red Seal Trades.

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Eligible companies for the Apprenticeship Job Creation Tax Credit (AJCTC) include businesses that hire eligible apprentices in prescribed trades under registered apprenticeship programs. The credit is available to employers who employ apprentices in the first two years of their apprenticeship contract.

Businesses employing apprentices in prescribed trades
Employers with apprentices registered under apprenticeship programs

grant_eligibility_criteria|eligible_expenses

The Apprenticeship Job Creation Tax Credit (AJCTC) is designed to support employers hiring eligible apprentices in prescribed trades. It provides financial incentives for businesses to invest in the training and development of apprentices during the initial stages of their apprenticeship program.

Employing eligible apprentices in prescribed trades listed under the Red Seal Trades program.
Providing training and development opportunities for apprentices within the first two years of their apprenticeship contract.

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Step 1: Verify Apprentice Eligibility
- Ensure the apprentice is working in a prescribed trade listed as a Red Seal Trade.
- Confirm the apprenticeship is in the first two years of their contract.
- Make sure the apprenticeship contract is registered with the federal, provincial, or territorial government.
Step 2: Calculate Eligible Salaries and Wages
- Determine the total eligible salaries and wages payable to the eligible apprentice.
- Calculate 10% of these salaries and wages to find the eligible tax credit.
- Ensure the credit does not exceed $2,000 per apprentice per year.
Step 3: Prepare Tax Documents for Credits
- Gather necessary documentation including salary records and the apprenticeship contract.
- Complete the required Form T2038(IND) for individuals or T2SCH31 for corporations.
- Ensure accuracy and completion before filing.
Step 4: Submit on Income Tax Return
- Claim the AJCTC on your individual or corporate income tax return.
- Input the calculated credit on line 41200 of your tax return.
- Review the application for accuracy and completeness before submission.
Step 5: Await Confirmation and Processing
- Submit your tax return through the appropriate federal channels, either electronically or by mail.
- Keep a copy of the submitted tax return and related documents for your records.
- Monitor communications for confirmation of processing and credit application.

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Here are additional relevant details for this tax credit:

The AJCTC can be claimed by individuals on their income tax return using line 41200, with the appropriate form, Form T2038(IND).
For corporations, the credit is claimed using Form T2SCH31 as part of their corporate tax filings.
The income tax package and guides such as the T4012 provide necessary information for claiming the credit.
Unused credits have a carry-back period of 3 years and a carry-forward period of 20 years, allowing for flexible use in tax management.
There are specific rules for allocating the credit among related employers to ensure compliance with the $2,000 limit per apprentice.