Ontario Apprenticeship Training Tax Credit or the Ontario Co-operative Education Tax Credit

As an employer in Ontario, you can claim provincial tax credits for the apprentices or co-op students you hire at your business.

If your unincorporated business hires and trains apprentices in skilled trades, you can claim a tax credit to help you pay for their salaries. Apprenticeships that started on or after April 23, 2015 can claim the apprenticeship training tax credit for the first 36 months of their program, but apprenticeships that started before that date can claim the credit for the first 48 months. The credit amount is based on the salary you paid to the apprentice and the maximum you can claim is $5,000 per year or $15,000 over the first 36-month period.

Similarly, if you hired students enrolled in a co-op program at an Ontario university or college, you can claim a tax credit to help you pay for their salaries. With the co-operative education tax credit, you can claim up to $3,000 for each work placement. Most work placements will be anywhere between 10 weeks to 4 months long at the most. Make sure your student’s school provides you with a certificate for their placement.


Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2016 taxes:

Before you begin, make sure you told us that you lived in ONTARIO on December 31, 2016.

  1. Under the PREPARE tab, click the LET’S TALK ABOUT 2016 icon.

  2. Select the checkbox labelled I worked for myself and select the province or territory of your self-employment.

  3. Click the EMPLOYMENT icon. You'll find yourself here: 

  4. Under the CREDITS AND REBATES heading, select the checkbox labelled Ontario tax credits for self-employed individuals, then click Continue.

  5. When you arrive at the page for the Ontario tax credits for self-employed individuals, enter your information into the tax software.