A refundable tax credit for corporations and unincorporated businesses employing apprentices in certain skilled trades during the first 48 months of an apprenticeship program.
In a taxation year, for each qualifying apprenticeship, an eligible employer may claim a refundable tax credit for eligible expenditures for the apprenticeship of 35% (45% for small businesses) to a maximum of $10,000. The tax credit will first reduce Ontario tax payable for the taxation year and any excess will be refunded. The full amount of the credit is considered to be taxable government assistance and is included in income.
Eligible expenditures are:
- Salaries and wages (including taxable benefits) paid to an apprentice in a qualifying apprenticeship; or
- Fees paid to an employment agency for the provision of services performed by an apprentice in a qualifying apprenticeship.
Corporation is eligible for the ATTC if it:
- Has permanent establishments in Ontario
- Is subject to Ontario Income Tax
- Incurs eligible expenditures in training apprentices in designated skilled trades