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Co-operative Education Tax Credit
Ontario co-op student tax credit
Last Update: April 10, 2026
Funding available
$ 3,000
Timeline
- Open continuously
Location
Ontario, Canada
Overview
Access a refundable tax credit of 30% to a maximum of $3,000 per placement to hire co-op students.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Develop workforce skills
Eligible Funding
- Maximum amount : 3,000 $
- Up to 25% of project cost
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- All industries
Location
- Ontario
Legal structures
- For-profit business
- Non-profit
- Public or Parapublic institution
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Canadians
Non-profit candidates
Sector of operation
- Higher Education
- Employment and Training
Target groups
- Business owners / entrepreneurs
- Academia / students
Revenue structures
- All structures
Scope
- Provincial
Next Steps
1
Determine your project
2
Validate your eligibility
Documents Needed
- Letter of certification from the educational institution
- Corporation tax return and Schedule 550
- Schedule 5, Tax Calculation Supplementary – Corporations
Eligibility
Who is eligible?
- Corporations in Ontario
- Unincorporated businesses in Ontario
- Partnership members other than limited partners
Who is not eligible
- Corporations exempt from tax under Part III of the Taxation Act, 2007 (Ontario)
- Businesses without a permanent establishment in Ontario
Eligible expenses
This grant provides tax credits to Ontario businesses hiring students enrolled in qualifying co-operative education programs. The eligible activities concentrate on creating meaningful work placements that align with academic objectives and support experiential learning.
- Hiring students for work placements developed or approved by eligible educational institutions.
- Engaging students in productive work during their placement rather than mere observation.
- Offering work placements ranging from 10 weeks to 16 months, depending on the educational program type.
- Paying students for their work during the placement period.
- Supervising and evaluating student's job performance throughout the work placement.
- Ensuring educational institutions monitor the student's progress in the work placement.
Ineligible Costs and Activities
- Work placements not certified by the educational institution.
- Placements where the student is not paid for the work performed.
- Placements exceeding the required duration limits.
Eligible geographic areas
- Ontario
Processing and Agreement
- The claim is filed with the corporation’s T2 Corporation Income Tax Return.
- The educational institution certifies the qualifying work placement.
- The CRA administers the credit on Ontario’s behalf.
- Supporting documents must be kept for at least 7 years.
Additional information
Here are additional relevant details for this grant:
- Work placements for students in co-operative education programs must be certified by the educational institution, ensuring they meet the program requirements and duration criteria.
- The credit amount varies based on the employer's total payroll from the previous year, with maximum credit limits applicable per work placement.
- Employers may need to amend previous tax returns if changes to the credit claim are necessary and must do so within specific time frames depending on corporation type.
- The entire credit amount must be reported as income in the tax year it is received, impacting the business's taxable income.
- Employers should retain supporting documentation, such as a letter of certification from the student's educational institution, for at least seven years for possible audits.
Frequently Asked Questions about the Co-operative Education Tax Credit Program
Here are answers to the most common questions about the Co-operative Education Tax Credit. 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.
What is the Co-operative Education Tax Credit?
Access a refundable tax credit of 30% to a maximum of $3,000 per placement to hire co-op students.
How much funding can be received?
Co-operative Education Tax Credit Funds up to 25% of admissible expenses, capped at $3,000 per project.
Who is eligible for the Co-operative Education Tax Credit program?
To be eligible for the Co-operative Education Tax Credit program, you must:
The employer must be a corporation or an unincorporated business with a permanent establishment in Ontario subject to Ontario corporate or personal income tax.
Members of partnerships (excluding limited partners) can share the credit for qualifying work placements.
Associated corporations hiring the same student must designate one corporation to claim the work placements for the credit.
Who can I contact for more information about the Co-operative Education Tax Credit?
You can contact Ontario Ministry of Finance.
Where is the Co-operative Education Tax Credit available?
The Co-operative Education Tax Credit program is available the province of Ontario.
Is the Co-operative Education Tax Credit a grant, loan, or tax credit?
Co-operative Education Tax Credit is a Tax Credits
Who are the financial supporters of the Co-operative Education Tax Credit?
Co-operative Education Tax Credit is funded by Ontario Ministry of Finance, Government of Ontario