This is a federal incentive program designed to help employers offset the cost of hiring and training employees who have entered into an apprenticeship contract.
You can take advantage of a non-refundable tax credit equal to 10% of the eligible salaries and wages paid to apprentices. Any unused credit may be carried back 3 years and carried forward 20 years.
The maximum credit is $2,000 per year for each eligible apprentice.
There is also the added benefit of having higher skilled employees as part of your team.
Any business that hires someone working in a prescribed trade, in the first two years of their apprenticeship contract qualifies. Access a list of the prescribed trades currently listed as Red Seal Trades or check out the list below.
Salaries and wages paid by the employer to an eligible apprentice for the apprentices' employment in Canada during the first 24 months of the apprenticeship are eligible. The employment must have begun after May 1, 2006.
Remuneration based on profits, bonuses, and taxable benefits including stock options, and certain unpaid remuneration don't qualify.
