Apprenticeship Job Creation Tax Credit (AJCTC)

Q: How much funding can be received?

Apprenticeship Job Creation Tax Credit (AJCTC) Funds up to 10% of admissible expenses, capped at $2000 per project.

Q: What is the deadline to apply?

The deadline to apply is not specified.

Q: Is the Apprenticeship Job Creation Tax Credit (AJCTC) a grant, loan, or tax credit?

Apprenticeship Job Creation Tax Credit (AJCTC) is a Tax Credits

Q: 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

Q: 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

Q: Who can I contact for more information about the Apprenticeship Job Creation Tax Credit (AJCTC)?

You can contact Canada Revenue Agency (CRA).

Q: Where is the Apprenticeship Job Creation Tax Credit (AJCTC) available?

The Apprenticeship Job Creation Tax Credit (AJCTC) program is available across Canada.

Last Update: July 22, 2025

Canada

Tax credit for hiring apprentices

At a glance

Eligible Funding

Max. $2,000
Up to 10% of project cost

Timeline

Open Date : November 14, 2019

Financing Type

Tax Credits

Eligible Industries

Construction
Manufacturing
Transportation and warehousing

Funds Providers

Unspecified

Program status

Open

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.

Financing terms and conditions

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.

Activities funded

Hiring and employing eligible apprentices in prescribed trades as part of a registered apprenticeship program.

Examples of admissible projects:

$ 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

Establishing a culinary apprenticeship program for Red Seal chefs

$ 2,000

Creating a carpentry apprenticeship program for Red Seal certification

Eligibility

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.

How to apply

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.

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.

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.

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.

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.

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

Apprenticeship Job Creation Tax Credit (AJCTC)

Apply to this program

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.