Hiring an apprentice offers three advantages: your team gains someone with cutting-edge skills; the apprentice finds a solid foundation for their career; and there are financial incentives available to your company and the apprentice.
Gaining a competitive advantage
An apprentice can:
- Bring knowledge of cutting-edge technologies and concepts to your company
- Join your team as the company grows so you can avoid the challenge finding qualified workers later
- Learn how to actively play a role in your team’s success
Growing your apprentice’s career
- Be a rewarding career, given the growing demand for workers in the trades
- Allow the worker to start earning wages while learning on the job
- Build confidence as employers help put skills into practice so everyone contributes to the company’s success
Accessing financial incentives
Monetary benefits such as tax credits are available to your company and apprentice.
- Apprenticeship Job Creation Tax Credit (AJCTC): You can claim a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to the apprentice for employment after May 1, 2006. The maximum credit is $2,000 per apprentice per year.
- Manitoba Paid Work Experience Tax Credits: Employers not eligible for the AJCTC can claim a percentage of apprentices’ and newly-certified journeypersons’ wages up to a maximum dollar amount. Employers receive the credit through their personal or corporate income tax return.
|Levels 1 and 2 - inside Winnipeg||Levels 1 and 2 - outside Winnipeg||Levels 3, 4, 5||Newly Certified Journeyperson|
|Tax credit: 15% Maximum credit: $5,000||Tax credit: 20% Maximum credit: $5,000||Tax credit: 15% Maximum credit: $5,000||Tax credit: 15% Maximum credit: $5,000|
- Journeyperson Business Start Program: Journeypersons may be eligible for a grant up to $2,500 based on 50% of eligible expenditures (eg. buying equipment, tools, supplies; leasehold and building improvements) to start self-employment or a full-time business in rural and Northern Manitoba. Applications must be submitted within one year of starting the business.
- Apprenticeship Incentive Grant (AIG): Apprentices who 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 who became a certified journeyperson can apply for a taxable cash grant of $2,000.
- Canada Apprentice Loan: Apprentices can get up to $4,000 in interest-free loans per period of technical training.
- 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.
- Manitoba Youth Apprenticeship Programs: High school students can get a head start through the High School Apprenticeship Program (HSAP), Provincial Accreditation through High School (PATHS) and Student Apprentice Work Experience Co-Op (SAWEC).
- MPI Apprenticeship Grant and Tool Allowance: Apprentices in the collision repair industry can access a maximum $5,000 tool allowance. A $2,000 grant is available to apprentices completing any program level, up to a maximum of $8,000 per apprentice.
- Scholarships, bursaries and awards: A variety of bursaries and awards are available.