Apprenticeship Job Creation Tax Credit (AJCTC)
Canada
Tax credit for hiring apprentices
grant_single|update February 27, 2025
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateNovember 14, 2019
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Construction
- Manufacturing
- Transportation and warehousing
grant_single|grantors
- Canada Revenue Agency (CRA)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
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.
grant_single_labels|terms_and_conditions
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.
grant_single_labels|projects
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
grant_single_labels|admissibility
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.
grant_eligibility_criteria|who_can_apply
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.
grant_single_labels|apply
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grant_single_labels|otherInfo
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.
Apply to this program
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