In 2015 the Ontario Budget introduced changes to the Apprenticeship Training Tax Credit (ATTC) for expenditures related to apprentices who began an apprenticeship on or after April 24, 2015.

For apprenticeships that commenced on or after April 24, 2015, the ATTC reimburses employers 25% of eligible expenditures.  Small businesses are eligible for a higher credit rate of 30%.  The maximum annual amount of the tax credit is $5,000.00 per qualifying apprenticeship during the first 36 months of an apprenticeship program.

For apprenticeships that started before April 24, 2015 and in respect of eligible expenditures incurred after March 26, 2009, the ATTC reimburses employers 35% to 45% of eligible expenditures paid during the first 48 months of an apprenticeship to a maximum annual credit of $10,000.00 per qualifying apprenticeship.

Eligible expenditures are salaries and wages, including taxable benefits (i.e., amounts generally reported on the apprentice’s T4 slip) paid or payable to an apprentice in a qualifying skilled trade for services performed by the apprentice for the corporation or unincorporated business.

Eligible expenditures also include fees paid or payable to an employment agency by a corporation or unincorporated business for services performed by the apprentice in a qualifying apprenticeship.

To claim the tax credit eligible corporations claim the tax credit on schedule T2SCH552 or their T2 Corporation Income Tax Return.  Eligible employers operating unincorporated businesses claim the tax credit on Form ON479-Ontario Credits included in their personal income tax return.  Members of a partnership claim their share of the ATTC on their corporate or personal tax returns.

Although not required to be submitted with their tax return, eligible employers must keep a copy of the training agreement or contract of apprenticeship in order to support their tax credit claims.

For more detailed information refer to the Apprenticeship Training Tax Credit guidelines provided by the Ministry of Finance by clicking on the following link http://www.fin.gov.on.ca/publication/apprenticeship-training-tax-credit-details-en.pdf

Additionally for more information regarding this tax credit, contact the Canada Revenue Agency at 1-800-959-5525, 1-800-665-0354 for teletypewriter (TTY) or visit www.cra.gc.ca.