Ontario Apprenticeship Training Tax Credit – Ontario Ministry of Finance (2022)

Description:

The Apprenticeship Training Tax Credit is a refundable tax credit. The tax credit is based on salaries and wages paid to an apprentice.

Comments on Funding:

The ATTC is not available for apprenticeship programs that commenced on or after November 15, 2017

  1. for each qualifying apprenticeship that is an apprenticeship program that commenced on or after April 24, 2015 and before November 15, 2017, the ATTC reimburses employers 25% of eligible expenditures. Small businesses are eligible for a higher credit rate of 30%. The maximum annual amount of the tax credit is $5,000 per qualifying apprenticeship during the first 36 months of an apprenticeship program.
  2. for each qualifying apprenticeship that is an apprenticeship program that commenced before April 24, 2015, an eligible employer may claim a refundable tax credit for eligible expenditures incurred after March 26, 2009, the ATTC reimburses employers 35 to 45% of eligible expenditures paid during the first 48 months of an apprenticeship program to a maximum annual credit of $10,000 per qualifying apprenticeship.

Eligibility:

  • corporations with permanent establishments in Ontario subject to Ontario corporate income tax;
  • all sole proprietors filing Ontario personal income tax returns whose unincorporated business has a permanent establishment in Ontario;
  • a corporation or unincorporated business that pays a fee to an employment agency for the services of an apprentice is deemed to be the eligible employer and to employ the apprentice, not the employment agency. As well, the corporation or unincorporated business is deemed to be participating in the apprenticeship program with the apprentice, not the employment agency.

Eligible apprentices:

  • must be in a qualifying skilled trade.
  • must participate with the employer in an apprenticeship program in which the training agreement or the contract of apprenticeship has been registered before November 15, 2017 under the Ontario College of Trades and Apprenticeship Act, 2009 or a predecessor of that Act. 
  • end their apprenticeships on the earlier of:
  • the date on which the apprentice is entitled to receive the appropriate certificate under the Ontario College of Trades and Apprenticeship Act, 2009 or a predecessor of that Act;
  • the date, if any, on which the training agreement or contract of apprenticeship is cancelled, suspended or revoked.

The ATTC is available only in respect of apprenticeship programs that began on or before November 14, 2017.

Documentation Needed:

  • Corporations may claim the tax credit on Schedule 552 and file it with their T2 corporation income tax return. 
  • Employers operating unincorporated businesses may claim the tax credit on form ON479, Ontario Credits, included in their personal income tax return.
  • Members of partnerships claim their share of the tax credit on their own corporate or personal tax returns. Limited partners cannot claim the tax credit. But, general partners of a limited partnership can claim their share of the tax credit.

Other Things to Note:

This credit is eliminated for apprenticeship programs in which the training agreement or contract of apprenticeship is registered after November 14, 2017.

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