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Source verified July 10, 2026
Apprenticeship Job Creation Tax Credit (AJCTC)
Tax credit for hiring apprentices
Funding available
Up to 10% of project cost
Deadline
Open continuously
Location
Canada
Overview
The Apprenticeship job creation tax credit gives employers a non-refundable investment tax credit of 10% on salaries and wages paid to apprentices after May 1, 2006, up to $2,000 per year for each eligible apprentice. Eligible claims cover apprentices in prescribed trades during the first two years of a registered apprenticeship contract.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Attract or retain talent
- Develop workforce skills
Eligible Funding
- Up to 10% of project cost
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- Sole proprietorship
- For-profit business
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.
Documents Needed
- Form T2038(IND), Investment Tax Credit (Individuals), for individual claims
- Schedule 31 (Form T2SCH31), Investment Tax Credit – Corporations, for corporate claims
- T2 Corporation Income Tax Return, for corporate claims
Official resources
Application form
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.
How to apply
- Claim the AJCTC on your individual income tax return on line 41200 – Investment tax credit by filing Form T2038(IND), Investment Tax Credit (Individuals).
- For a corporate claim, download and save Schedule 31 (Form T2SCH31), Investment Tax Credit – Corporations, to your computer.
- Open the downloaded Schedule 31 in Acrobat Reader 10 or later and do not open it in your web browser.
- File Schedule 31 with the T2 Corporation Income Tax Return.
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.
Contacts
Frequently Asked Questions about the Apprenticeship Job Creation Tax Credit (AJCTC) Program
What is the Apprenticeship Job Creation Tax Credit (AJCTC)?
The Apprenticeship job creation tax credit gives employers a non-refundable investment tax credit of 10% on salaries and wages paid to apprentices after May 1, 2006, up to $2,000 per year for each eligible apprentice. Eligible claims cover apprentices in prescribed trades during the first two years of a registered apprenticeship contract.
How much funding can be received?
Apprenticeship Job Creation Tax Credit (AJCTC) Funds up to 10% of admissible expenses.
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) by email at none or by phone at none.
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