| TAX CREDITS AND DEDUCTIONS
Apprenticeship Job Creation Tax Credit (AJCTC) |
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The AJCTC is a non-refundable tax credit available to employers equal to 10% of the eligible salaries and wages payable to eligible apprentices in respect of employment after May 1, 2006. The maximum credit is $2,000 per year for each eligible apprentice.
More information is available on the Canada Revenue Agency website.
Tradesperson's Tools Deduction |
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The Tradesperson's Tools Deduction provides employed tradespersons with an annual deduction of up to $500 to help cover the cost of new tools necessary for their trade. The deduction applies to the total cost of eligible tools if the following conditions are met:
- the total cost exceeds $1,000;
- the tools were purchased after May 1, 2006;
- the purchase was made by an employed tradesperson.
More information is available on the Canada Revenue Agency website.
TAXABLE AWARDS AND GRANTS
For a detailed list of trades eligible for a grant or award, refer to the Apprenticeship Awards and Grants section of the Apprenticeship Training and Examination Schedule.
Apprenticeship Incentive Grant (AIG) of $1,000 (for levels 1 & 2)
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The Apprenticeship Incentive Grant (AIG) is a federal taxable cash grant of $1,000 per year which is available to apprentices who have successfully completed their 1st or 2nd year in a Red Seal trade.
- To qualify for the 1st year grant of $1,000, you must have successfully completed
Level 1/Group A training and 2,000 hours
- To qualify for the 2nd year grant of $1,000, you must have successfully completed
Level 2/Group B training and 4,000 hours
To apply for an AIG click here. Apply as soon as you are eligible, as there are application deadlines associated with the AIG.
Provincial Apprentice Progression Award (for levels 3, 4 & 5)
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Apprentices from all designated trades which have four-level apprenticeship programs can apply for a taxable $700 Provincial Apprentice Progression Award if they fulfill all Level 3/Group C requirements on or after January 1, 2009.
Apprentices in five-level apprenticeship programs can apply for a taxable $700 Provincial Apprentice Progression Award if they fulfill all Level 3/Group C requirements on or after January 1, 2009. They can apply for another award if they complete all Level 4/Group D requirements and obtain a Certificate of Apprenticeship on or after January 1, 2009.
Awards will be paid twice yearly:
- For clients who meet the criteria and who apply between the months of January and June, the award will be paid in September.
- For clients who meet the criteria and who apply between the months of July and December, the award will be paid in March.
To apply for a Provincial Apprentice Progression Award, click here. Applications must be received within six months of achieving eligibility.
Apprenticeship Completion Grant (ACG) of $2,000
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Apprentices in Red Seal trades are eligible to apply for the taxable Apprenticeship Completion Grant. If you have successfully completed all requirements of your program and pass the Interprovincial Red Seal Exam, you will be eligible to receive a grant of $2,000. The Certificate of Apprenticeship (with Red Seal endorsement) which is issued to all completing apprentices will be your proof of eligibility.
Apprentices can apply for this grant starting July 2, 2009, with eligibility retroactive to January 1, 2009.
Application forms and further information are available on the Service Canada website or by phone at 1-866-742-3644 (TTY: 1-866-909-9757).
Provincial Apprentice Completion Award of $1,000
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From January 1, 2009 forward:
Apprentices in non-Red Seal apprenticeship programs that have 3, 4 or 5 levels of training are eligible to apply for a taxable $1,000 Provincial Apprentice Completion Award once they complete all training requirements and receive a Certificate of Apprenticeship.
Awards will be paid twice yearly:
- For clients who meet the criteria and who apply between the months of January and June, the award will be paid in September.
- For clients who meet the criteria and who apply between the months of July and December, the award will be paid in March.
To apply for a Provincial Apprentice Completion Award, click here. Applications must be received within six months of achieving eligibility.
Please note: The Provincial Apprentice Completion Award will not be paid to Apprentices in a Red Seal trade who applied for it after January 1, 2009. Apprentices who fall into this category should apply for the Apprenticeship Completion Grant instead.
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