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Source verified April 10, 2026
Co-operative Education Tax Credit
Refundable credit for Ontario co-op placements
Funding available
$ 3,000
Deadline
Open continuously
Location
Ontario, Canada
Overview
The Ontario co-operative education tax credit is a refundable tax credit for Ontario corporations with a permanent establishment in Ontario that hire students in qualifying post-secondary co-operative education programs. It supports qualifying work placements and eligible expenditures such as salaries and wages, taxable benefits, and employment agency fees.
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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
Funds Providers
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
Activities funded
- Qualifying work placements under a post-secondary co-operative education program
Documents Needed
- Letter of certification from the Ontario eligible educational institution
- Schedule 550, Ontario Co-operative Education Tax Credit
- Schedule 5, Tax Calculation Supplementary – Corporations
Official resources
Eligibility
Who is eligible?
- Corporations
- Partnership members other than limited partners, where applicable
Who is not eligible
- Corporations exempt from tax under Part III of the Taxation Act, 2007 (Ontario)
Eligible expenses
- Salaries and wages, including taxable benefits, paid or payable to a student in a qualifying work placement
- Fees paid or payable to an employment agency for services performed by the student in a qualifying work placement
Ineligible Costs and Activities
- Expenditures for a work placement are not eligible if they are greater than the amounts that would be paid to an arm's length employee.
Eligible geographic areas
- Ontario
Selection criteria
There are evaluation and selection criteria for this grant as follows:
- The employer must be an eligible corporation or unincorporated business with a permanent establishment in Ontario and subject to Ontario corporate income tax.
- The work placement must adhere to specific conditions such as duration, integration with academic studies, and student payment.
- Government assistance received for the work placement may impact the eligibility of expenditures for the tax credit.
How to apply
- Download and fill out Schedule 550.
- File Schedule 550 with the T2 Corporation Income Tax Return.
Processing and Agreement
- File Schedule 550 with the T2 Corporation Income Tax Return.
- Do not submit the letter of certification with the T2 Corporation Income Tax Return.
- Keep a copy of the letter of certification to support the claim.
- If the claim is through a partnership, each corporate partner other than a limited partner must file a separate Schedule 550 to claim the partner's share.
Additional information
- Use Schedule 550 to claim the Ontario co-operative education tax credit for corporations.
- Keep a copy of the letter of certification from the Ontario eligible educational institution to support the claim.
- Do not submit the letter of certification with the T2 Corporation Income Tax Return.
- When claiming a CETC for repayment of government assistance, complete a separate entry for each repayment.
Frequently Asked Questions about the Co-operative Education Tax Credit Program
What is the Co-operative Education Tax Credit?
The Ontario co-operative education tax credit is a refundable tax credit for Ontario corporations with a permanent establishment in Ontario that hire students in qualifying post-secondary co-operative education programs. It supports qualifying work placements and eligible expenditures such as salaries and wages, taxable benefits, and employment agency fees.
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 corporation must have a permanent establishment in Ontario.
The corporation must not be exempt from tax under Part III of the Taxation Act, 2007 (Ontario).
The student must work under a qualifying co-operative education program.
What expenses are eligible under Co-operative Education Tax Credit?
Qualifying work placements under a post-secondary co-operative education program
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