Tax Credits

BC Training Tax Credits

The BC provincial training tax credits provide income tax credits for employers and employees who are engaged in apprenticeship programs administered through the Industry Training Authority (ITA).

There are three main elements to the training tax credits:

  • basic credits for non-Red Seal training programs;
  • completion credits for both Red Seal and non-Red Seal training programs; and
  • enhanced credits for First Nations individuals and persons with disabilities.

Some helpful tax tips from the CRA and additional information at WorkBC.

For more information please visit the BC Government website.

Tax Credits for Apprentices

Provincial training tax credits provide refundable income tax credits for apprentices registered in Industry Training Authority (ITA) Red Seal and Non-Red Seal apprenticeship programs. Enhanced Tax Credits are available for ITA registered apprentices who are First Nations or who have disabilities. For more information please see the Tax Credit information on the BC Government website.

Tuition Tax Credit for Examination Fees

Effective 2011, examination fees paid to write ITA certification exams qualify for the tuition tax credit. The key restriction is related to the license or certification that is granted as a result of the exam - the license or certification must specifically allow the person to practice a trade in Canada.

Further information is available on the CRA website.

Tax Credits for Employers

The Provincial and Federal governments provide income tax credits for employers of apprentices registered in Industry Training Authority (ITA) apprenticeship programs. For additional details and information please see the BC Government website.

Apprenticeship Job Creation Tax Credit for Red Seal Programs

Employers who hire apprentices registered in Red Seal programs are eligible to claim:

  • 10% of wages up to a maximum of $2,000 per year for each apprentice, for the first 24 months of registration

Completion of technical training or submission of work-based training hours by an apprentice is not required in order to claim this tax credit.

For more information visit CRA's website.
 

BC Basic Tax Credit for Non-Red Seal Programs

Employers who hire apprentices registered in non-Red Seal programs are eligible to claim:

  • 20% of wages up to a maximum of $4,000 per year for each apprentice, for the first 12 months of registration
  • 20% of wages up to a maximum of $4,000 per year for each apprentice, for the second 12 months of registration

Completion of technical training or submission of work-based training hours by an apprentice is not required in order to claim this tax credit.

BC Completion Tax Credit

Employers who hire apprentices are eligible to claim tax credits when those apprentices complete levels three and higher of the technical training or work based training hours or receiving a certificate (depending on the program) for their trade.

Enhanced Tax Credit for Employers

Employers of apprentices who are First Nations or who have disabilities may also be eligible for additional tax credits: