Closed
Source verified July 31, 2026
Co-operative Education Tax Credit
Refundable credit for Ontario co-op student placements
Funding available
$ 3,000
Deadline
Closed
Location
Ontario, Canada
Who can apply
Corporations with permanent establishments in Ontario that are subject to Ontario corporate income tax.
See full eligibility
Overview
The Co-operative Education Tax Credit offers a 25% to 30% refundable tax credit, up to $3,000 per placement, for Ontario businesses hiring post-secondary co-op students. Eligible expenditures include student salaries and wages, taxable benefits, and certain employment agency fees for services carried out primarily at an Ontario place of business.
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At a glance
Funding available
Financing goals
- Attract or retain talent
Eligible Funding
- Maximum amount : 3,000 $
- Up to 25% of project cost
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Ontario
Legal structures
- 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
- Paid co-operative education work placements of at least 10 consecutive weeks under a qualifying co-operative education program.
- Paid internship work placements of not less than 8 consecutive months and no more than 16 consecutive months under a qualifying internship program.
Documents Needed
- A letter of certification from the student’s university or college, or other eligible educational institution in Ontario, including the student’s name, employer name, educational institution name, term of the work placement, name or discipline of the qualifying co-operative education program, and the signature of an appropriate faculty member such as the Director of Co-operative Education.
Official resources
Eligibility
Who is eligible?
- Corporations with permanent establishments in Ontario that are subject to Ontario corporate income tax.
- Unincorporated businesses with permanent establishments in Ontario that are subject to Ontario personal income tax.
- Members of a partnership, other than a limited partner, may share the credit for each qualifying work placement.
Who is not eligible
- Limited partners cannot share the credit as members of a partnership.
Eligible expenses
- Reasonable salaries and wages, including taxable benefits reported on the T-4 slip, paid or payable to the student for the work placement, if the salary is attributable to an Ontario permanent establishment.
- Reasonable fees paid or payable to an employment agency for the work placement for services of a student carried out primarily at an Ontario place of business.
- A repayment of government assistance received for a work placement, but only to the extent that the assistance affected a claim in a previous taxation year.
Ineligible Costs and Activities
- Work placements where the student is only an observer and not engaged in productive work.
Eligible geographic areas
- Ontario
How to apply
- Corporations claim the credit on Schedule 550 and file it with their T2 Corporation Income Tax Return.
- On line 452 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of the credit being claimed.
- Employers operating unincorporated businesses claim the credit on Form ON479, Ontario Credits, included in their Personal Income Tax Return.
- Members of partnerships, other than limited partners, claim their share of the credit on their own corporate or personal tax returns, as applicable.
Processing and Agreement
- The credit is available for the taxation year in which the work placement ends.
- The credit will reduce tax payable for that year, and any excess will be refunded.
- The full amount of the credit is taxable and must be reported as income in the tax year in which the credit is received.
- The letter of certification must be kept for at least 7 years and provided if requested; if supporting documentation cannot be provided, the claim may be rejected.
- Employers may claim a previous year’s credit or change the amount previously claimed by requesting an amendment to the relevant tax return; a Canadian-controlled private corporation must do so within three years of the initial assessment, and other corporations within four years.
Additional information
- The credit is legislated under section 88 of the Taxation Act, 2007.
- The Canada Revenue Agency administers the credit on behalf of Ontario through the federal income tax system.
- If a student’s employment period exceeds four months, each additional consecutive four-month period is considered a separate work placement; an additional period of more than 10 consecutive weeks but less than four consecutive months is also considered a separate work placement.
Contacts
Frequently Asked Questions about the Co-operative Education Tax Credit Program
What is the Co-operative Education Tax Credit?
The Co-operative Education Tax Credit offers a 25% to 30% refundable tax credit, up to $3,000 per placement, for Ontario businesses hiring post-secondary co-op students. Eligible expenditures include student salaries and wages, taxable benefits, and certain employment agency fees for services carried out primarily at an Ontario place of business.
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 unincorporated business with a permanent establishment in Ontario and be subject to Ontario corporate income tax or Ontario personal income tax.
The business must provide a paid qualifying work placement for a student enrolled in a qualifying post-secondary co-operative education program at an eligible educational institution.
The placement must involve productive work and meet the required duration: at least 10 consecutive weeks, or 8 to 16 consecutive months for a qualifying internship program.
What expenses are eligible under Co-operative Education Tax Credit?
Paid co-operative education work placements of at least 10 consecutive weeks under a qualifying co-operative education program.
Paid internship work placements of not less than 8 consecutive months and no more than 16 consecutive months under a qualifying internship program.
Who can I contact for more information about the Co-operative Education Tax Credit?
You can contact Ontario Ministry of Finance or by phone at 1‑800‑959‑5525.
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