Access financial incentives when hiring apprentices
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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.
Visit the government’s site for a list of third-party providers of Apprenticeship Service supports.
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 eligible apprentice.
Careerlauncher is a NEW apprenticeships program available to Canadian small and medium-sized employers. Through this program, you can receive either a $10,000 grant when you hire an equity-deserving first-year apprentice in one of 39 Red Seal construction or manufacturing trades, or a $5,000 grant when you hire an apprentice that is not part of an equity-deserving group. Equity-deserving groups include women, visible minorities, people with disabilities, etc.) Deadline to apply is March 31, 2024.
The Apprenticeship Incentive Grant (AIG) is a taxable cash grant of $1,000 per year or level, for a lifetime maximum amount of $2,000 per person.
The Apprenticeship Completion Grant (ACG) is a one-time taxable cash grant lifetime amount of $2,000 per person for registered apprentices who complete their apprenticeship training and obtain their journeyperson certification.
Employed tradespersons (including apprentice mechanics) may be able to deduct the cost of eligible tools bought in 2022 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.
Below are the financial programs for employers and apprentices available per province.
Newfoundland and Labrador
Prince Edward Island
Apprenticeship and Industry Training: over 900 scholarships valued at $1,000 each. There is no application process, apprentices just need to give their consent through their MyTradeSecrets Account to be up for consideration.
Training Tax Credit Program (TTC): provides tax credits for employers and apprentices who are engaged in eligible apprenticeship programs administered through SkilledTradesBC (formerly the Industry Training Authority). The program is currently slated to run until December 31, 2024.
Paid Work Experience Tax Credits (PWETC): Employers can claim a percentage of apprentice and newly certified journeyperson wages up to $5,000. This program also covers co-op students and high school apprentices. Employers can receive the credit through their annual personal or corporate income tax return.
Apprenticeship Manitoba offers general information geared to apprentices and employers as well as information on available financial supports.
Apprentices in the Motor Vehicle Body Repairer Program or the Motor Vehicle Body Painter Program, offered through Apprenticeship Manitoba, may be eligible for financial assistance from Manitoba Public Insurance, which includes a Tool Allowance (maximum of $5,000) and an Apprenticeship Grant after successfully completing each level of their program (up to $8,000). This program expires February 28, 2025.
Canadian Apprenticeship Service: $5,000 for eligible employers when they hire a first-year apprentice in one of the 39 Red Seal trades. An additional $5,000 is available if the apprentice self-identifies with one of the following groups: women, Indigenous people, newcomers, persons with disabilities, visible minorities, 2SLGBTQ+
Newfoundland and Labrador
Apprenticeship Wage Subsidy (AWS) Program: provides a wage subsidy of 75 %, to a maximum of $14 an hour, for all apprentices funded under the program, and is paid directly to the employers who hire the apprentice.
Trades and Occupation Wage Subsidy program: An employer can be subsidized up to 3,200 hours of work experience (a maximum of 1,600 hours per fiscal year) at a maximum of $8.00 per hour.
A maximum of $15.20 per hour is available when female apprentices are hired in non-traditional trades. Hairstylists, cooks, and bakers are considered traditional trades.
Canadian Apprenticeship Service: $5,000 for eligible employers when they hire a first-year apprentice in one of the 39 Red Seal trades. An additional $5,000 is available if the apprentice self-identifies with one of the following groups: women, Indigenous people, newcomers, persons with disabilities, visible minorities, 2SLGBTQ+.
START Program: employers receive up to $25,000 for hiring and retaining an apprentice through their apprenticeship journey. Up to $30,000 is available if the apprentice is from an under-represented group.
Training on the Job: wage subsidies for employers who hire apprentices. 50% of the wage up to $15 for Level 1, $12.50 for Level 2, and $10.00 for Level 3 apprentices.
Achievement Incentive: Up to $17,000 to eligible employers when apprentices reach training and certification goals.
Prince Edward Island
Canadian Apprenticeship Service: $5,000 for eligible employers when they hire a first-year apprentice in one of PEI’s 19 eligible trades. An additional $5,000 is available if the apprentice voluntarily attests to being from at least one of the following groups: women, Indigenous peoples, newcomers, persons with disabilities, visible minorities, 2SLGBTQ+.
Workplace Apprenticeship Program (PAMT): allows for an experienced worker to be paired within the same company with a less experienced co-worker to whom they pass on their know-how. This program allows the apprentice to learn a trade while receiving a salary.
Graduate Retention Program (GRP) rewards eligible graduates who live in Saskatchewan and file a Saskatchewan income tax return by providing a rebate up to $20,000 of tuition fees paid.
Scholarship for trade or technical studies: $350 is awarded each year to one student who is enrolled in a technical or vocational course.