The maximum provincial tax credit available to employers of apprentices is $10,000 per qualifying apprenticeship per year. The credit is capped at a maximum of $40,000.00 over the first four years of an apprenticeship.
The federal tax credit is a maximum of $2,000.00 per qualifying apprenticeship per year with respect to the first two years of the apprenticeship. The federal credit is only a non-refundable credit which means that it can only be used to reduce federal tax otherwise payable. If the credit exceeds the federal tax payable, the excess credit is not refunded but instead can be carried back and applied to reduce federal tax in any of the three previous years, or it can be carried over for up to twenty years to reduce future tax payable.
The Canada Job Grant offers funding toward the cost of training provided by eligible third-party trainers. The total cost of training will be shared between the Government of Canada and employers. The Government of Canada could provide two-thirds of the cost of training, up to a maximum of $10,000 per grant. Employers will be required to contribute the remaining one-third of the training costs.
