Ontario to okay tax credit to encourage apprenticeship
Toronto, ON -- The Ontario government has proposed to introduce a tax credit to encourage employers to hire apprent...
Toronto, ON — The Ontario government has proposed to introduce a tax credit to encourage employers to hire apprentices. Under the proposal, corporations and unincorporated businesses in Ontario would be eligible for a 10 per cent refundable tax credit for eligible expenditures in respect of apprentices in a
qualifying skilled trade.
The tax credit would be increased to 15 per cent for businesses with total payroll costs of not more than $400,000. An employer would be eligible for a tax credit of up to $250 per month per apprentice to a maximum of $6,000 over a 24-month employment period.
Eligible expenditures would be salaries and wages paid after March 27, 2003 to an apprentice. Electrical and Network Cabling Specialist apprentices qualify for the credit.
These changes will take effect when the budget has been passed.
The text of the proposed tax credit can be found at the Ontario government’s budget website, www.ontfinance1.com/bud03e/paperc.htm, under the heading “Budget Paper C: Choosing Prosperity, Competitiveness and Job Creation”.