Access financial incentives when hiring apprentices in British Columbia | CFIB
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. Here are opportunities for the employer and individual apprentices:
- Apprenticeship Job Creation Tax Credit (AJCTC): The AJCTC is a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices in respect of employment after May 1, 2006. The maximum credit an employer can claim is $2,000 per year for each eligible apprentice. If your business hires an "eligible apprentice", you qualify to claim the credit.
- British Columbia Training Tax Credit Program (TTC): Provides tax credits for employers and apprentices who are engaged in eligible apprenticeship programs administered through the Industry Training Authority.The training tax credit is effective from January 1, 2007. BC Budget 2015 proposes to extend the training tax credit program through to December 31, 2017.
- 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.
- Passport to Education Awards, Provincial and District Scholarship Awards: Passport to Education stamps, Provincial and District scholarship awards may be used to pay for tuition fees for Apprenticeship Programs, Entry Level Trades Training Programs and Foundation Industry Training Programs offered by designated post-secondary institutions.