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Access financial incentives when hiring apprentices

Hiring an apprentice can connect you with an employee that has knowledge of cutting-edge technologies and concepts to help your business stay competitive. Government knows apprenticeship is important for our economy and provides incentives to offset the costs of apprenticeship.

Incentives from the Government of Canada:

  • Apprenticeship Job Creation Tax Credit (AJCTC): If you hire an eligible apprentice, you can claim this non-refundable tax credit equal to 10 per cent of the eligible salaries and wages payable to the apprentice in respect to employment after May 1, 2006. The maximum credit is $2,000 per year for each apprentice.
  • Apprenticeship Incentive Grant (AIG): Apprentices that have finished their first or second year/level can apply for a taxable cash grant of $1,000 per year/level up to a maximum of $2,000.
  • Apprenticeship Completion Grant (ACG): Apprentices that have become a certified journeyperson can apply for a taxable cash grant of $2,000.
  • Tradespersons and Apprentice Mechanic Tool Deductions: The cost of eligible tools bought to earn employment income as a tradesperson and as an eligible apprentice mechanic may be tax deductible, including any GST/HST and provincial sales tax paid.

Provincial/territorial government incentives:

Visit Canada’s Red Seal program website for more information on provincial and territorial support available for employers to hire apprentices and tradespeople.

Questions? Call a CFIB Business Counsellor today at 1–888–234–2232.