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Ontario considering tax credit for apprentices

TORONTO, Ont. -- Ontario carriers could soon benefit from a new apprenticeship training tax credit.

TORONTO, Ont. — Ontario carriers could soon benefit from a new apprenticeship training tax credit.

The 2004 Ontario Budget proposed the new credit, to encourage employers to hire and train apprentices in certain skilled trades.

The credit would make corporations and unincorporated businesses would be eligible for a 25 per cent refundable tax credit on wages and salaries paid after May 18, 2004, to eligible apprentices during the first 36 months of the apprenticeship. Businesses with total payroll costs not exceeding $400,000 would be eligible for a higher tax credit rate of 30 per cent. The maximum tax credit per apprentice would be $5,000 per year over the first 36 months of the apprenticeship.

Eligible apprentices would be in a qualifying skilled trade and must be hired before January 1, 2008. Qualifying skilled trades would include designated construction, industrial and motive power trades, as well as the service trades eligible under the present apprenticeship component of the Co-operative Education Tax Credit.

Further details of the proposed tax credit, including transitional provisions for apprenticeships under the Co-operative Education Tax Credit, can be found in the 2004 Ontario Budget at

If legislation implementing the Apprenticeship Training Tax Credit is passed by the legislature, the apprenticeships listed below, as identified by their apprenticeship trade codes, would qualify for the tax credit. Employers can find their apprenticeship trade code on their Contract of Apprenticeship/Training Agreement.

Motive Power Trades

* 240p Parts Technician
* 282e Powered Lift Truck Technician
* 295a Tire Wheel And Rim Mechanic
* 310b Auto Body Collision Damage Repairer, Branch 1
* 310c Fuel and Electrical Systems Technician
* 310d Transmission Technician
* 310e Alignment & Brakes Technician
* 310g Motorcycle Mechanic
* 310j Truck Trailer Service Technician
* 310k Automotive Electronic Accessory Technician
* 310q Auto Body Repairer Branch 2
* 310s Automotive Service Technician
* 310t Truck And Coach Technician
* 410k Motive Power Machinist
* 410n Automotive Painter
* 421a Heavy Duty Equipment Technician
* 421c Turf Equipment Technician
* 425a Agricultural Equipment Technician
* 435a Small Engine Mechanic
* 435b Marine Engine Mechanic
* 274l Automotive Glass Technician
* 690h Recreation Vehicle Technician

For information relating to apprenticeship trades or apprenticeship trade codes, please contact your local Ministry of Training, Colleges and Universities Field Office or call 1-888-JOB-GROW.

For all other enquiries please contact:

Ministry of Finance
Corporate and Commodity Taxation Branch
2nd floor, Frost Building North
95 Grosvenor Street, Queen’s Park
Toronto ON M7A 1Z1
Telephone: (416) 325-2637
Fax: (416) 314-8635

With files from the Ontario Trucking Association.

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