Businesses are reminded about the provincial government’s enriched Apprenticeship Training Tax Credit and the Co-operative Education Tax Credit, both of which address the OCC’s mandate to making these credits more cost-effective and accessible to small and medium businesses. 

The credit was recently enriched, so that now 45% of expenses related to apprenticeships (up from 30%) can be claimed by small businesses, and now 30% (up from 15%) in the case of registered co-op placements.

Businesses with payrolls of $400,000 or less are considered ’small businesses’ for the purpose of the credits. The percentage a business is entitled to decreases gradually as the size of the business increases, and is capped at 35% for apprenticeships and 25% for co-ops for businesses with payrolls over $600,000. 

The tax credit can be claimed by both incorporated and unincorporated businesses. Eligible corporations claim the Apprenticeship Training Tax Credit on Schedule T2SCH552 of their T2 Corporation Income Tax Return, and claim the Co-operative Education Tax Credit on Schedule T2SCH550 of their T2 Corporation Income Tax Return. Eligible employers operating unincorporated businesses claim both credits on Form ON479, “Ontario Credits” included in their personal income tax return.

Increasing the profile of apprenticeship training in the province continues to be a top priority for the OCC. Enabling greater participation in apprenticeship programs is a much-needed step towards addressing Ontario’s growing skilled trade shortage to create more opportunities for Ontario’s skilled workforce and facilitate Ontario’s transition to the new economy. 

For more information please contact Kelly Pritchard, Policy Analyst, at 416-482-5222, ext. 246 or kellypritchard@occ.on.ca.