Apprenticeship Training Benefits

Introduction

Both the provincial and federal governments are aware of the skilled trade shortage Canada will experience in the coming decade.


Financial incentives are available from both to begin, sustain or complete an apprenticeship program. Apprenticeship programs also offer other non-monetary benefits, such as practicing techniques with new equipment and tools in addition to the transfer of knowledge from experienced trade people.

Apprentice Benefits

Registered apprentices are eligible for a number of benefits including being more attractive to potential employers. Employers are more likely to hire a registered apprentice than someone with no past experience. There are also a number of federal and provincial grants, loans and deductions available that provide financial support for tuition, travel, tools, or other expenses during the apprenticeship training.

Apprenticeship grants are designed to make a career in the trades an attractive choice and encourage more apprentices to complete their training. Eligible apprentices could receive up to $4,000, which can be used to pay.

The Apprenticeship Incentive Grant (AIG) is a taxable cash grant of $1,000 per year/level of trade school completion up to a maximum of $2,000.

The Apprenticeship Completion Grant (ACG), which is a taxable cash grant of $2,000.

  • Registered apprentices who have completed their training and become a certified journeyperson in a designated Red Seal trade and who obtain either the Red Seal endorsement or a provincial or territorial Certificate of Qualification can apply for the ACG.
  • For more information http://www.servicecanada.gc.ca/eng/goc/apprenticeship/index.shtml

The Loans for Tools program offers new apprentices a loan to help them to offset the initial cost of the tools and equipment they need to perform the trade in which they are registered during the early years of their training.

The Trades Tool Deduction provides up to $500 to tradespeople for the cost of tools used for work. The deduction applies to the total cost of eligible tools in excess of $1,000 each year. The Employment Insurance system provides income support to eligible apprentices during their periods of in-school apprenticeship training will be subject to only one waiting period no matter where they are in their apprenticeship program.

Employer Benefits

Employers need access to talented and committed apprentices to meet their future workforce requirements. The Coop Diploma Apprenticeship Program (CODA) provides eager students, willing to learn a trade and become valuable permanent employees. Employer Sponsor tax credits begin as soon the apprentice is registered by the MTCU. If the consortium sponsors the apprentice prematurely, it will impact on any tax credit lime limits a future employer may receive following the transfer.

The Ontario Co-operative Education Tax Credit (CETC) is a refundable tax credit available to employers who hire students enrolled in a co-operative education program at an Ontario university or college. The maximum credit for each work placement is $3,000.

  • Most work placements are for a minimum employment period of 10 weeks up to a maximum of four months.
  • Eligible expenditures are salaries and wages (including taxable benefits) paid or payable to a student in a qualifying work placement; or
  • Fees paid or payable to an employment agency for the provision of services performed by the student in a qualifying work placement.
  • For more information http://www.rev.gov.on.ca/en/credit/cetc/

The Apprenticeship Training Tax Credit (ATTC) is a refundable tax credit available to employers who hire and train apprentices in certain skilled trades.

  • The ATTC is based on salaries and wages paid to an apprentice. The maximum credit for each apprenticeship is $10,000 per year. The maximum credit over the first 48-month period of the apprenticeship is $40,000. For more Information http://www.rev.gov.on.ca/en/credit/attc/

The $2000 Employment Signing Bonus encourages employers in the trades to register new apprentices in sectors where there is a high demand for skilled workers. This initiative will assist employers to hire and register apprentices who have left school and require upgrading to meet the registration standards for apprenticeship training.

  • The Employer Signing Bonus will be delivered in two equal instalments over six months.
  • First instalment, employers must meet all the specific apprenticeship requirements to provide training in the trade, and hire and register an apprenticeship scholarship candidate as an apprentice.
  • Second instalment, employers must continue to employ the apprentice and provide on-the-job training for at least six months from the date that the apprentice was registered.
  • For more Information http://www.tcu.gov.on.ca/eng/employers/emp_bonus.html

The Apprentice Job Creation Tax Credit is a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices. The maximum credit an employer can claim is $2,000 per year for each eligible apprentice.


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