Feds offering incentives for apprentices

Avatar photo

OTTAWA, Ont. — The federal government is providing incentives that could help encourage people to pursue a career as a heavy-duty vehicle technician.

Despite the healthy growth in Canadas economy, if you ask employers what their biggest worry is, most will reply that finding enough skilled workers tops the list, says Zarah Malik of Human Resources and Social Development Canada. This is no surprise. Every day there are media stories reporting that there will soon be more jobs in the skilled trades than qualified people to fill them.

The feds have introduced three programs aimed at addressing the shortage of skilled tradespeople by encouraging apprenticeship training and supporting young people who pursue careers in the skilled trades. While the programs arent entirely new, Malik wishes to raise awareness of the programs.

An Apprenticeship Incentive Grant program providing a taxable cash grant of $1,000 per year to registered apprentices upon successful completion of their first or second year/level of an apprenticeship program in one of the Red Seal trades (which includes heavy-duty vehicle technicians).

Last year, an Apprenticeship Job Creation Tax Credit was announced, which provides employers with a tax credit of up to $2,000 per apprentice for each of the first two years of his or her contract in one of the Red Seal trades. This credit will encourage more employers to participate in apprenticeship training. For example, an employer who hires a first-level apprentice, such as a machinist, would be able to claim a tax credit up to a maximum of $2,000 on the business tax return.

Also introduced last year was a new deduction to recognize that many employed tradespeople, including those in the trucking industry, must provide their own tools as a condition of employment. As a result of the new deduction, a tradesperson is eligible to deduct up to $500 from his or her annual income for the costs of new tools in excess of $1,000 that were purchased as a requirement for the job.

Canadas New Government is proud to be taking actions that provide concrete results, helping new apprentices across Canada, said Malik. Altogether, some 100,000 apprentices could benefit as a result of the new grant and the tax credit. We will continue to work with the provinces and territories, employers and unions in other ways to support the skilled trades.

For more information on the programs, visit www.servicecanada.gc.ca.

Avatar photo

Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry.


Have your say


This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.

*