BC Training Tax Credit for Employers: Completion Tax Credit
$3,000.00
Tax Credit
Description:
The Training Tax Credit provides refundable income tax credits for employers who employ apprentices enrolled in apprenticeship programs administered through the SkilledTradesBC.
B.C.’s Completion Tax Credit is available for both Red Seal and non-Red Seal apprenticeship programs. The completion credit requires the apprentice to complete level 3 or 4 of a program.
Comments on Funding:
The completion credit is based on the salary and wages you pay to an apprentice in the 12 months prior to the apprentice completing a level.
1. Completion tax credit level 3: 15% of eligible salary and wages up to $2,500.
2. Completion tax credit level 4: 15% of eligible salary and wages up to $3,000.
Continuous Intake
Eligibility:
Applicants must:
1. be sole proprietors, partnerships and corporations;
2. be subject to B.C. income tax if they are either:
a) a resident in B.C. on the last day of the taxation year, or
b) a corporation that maintained a permanent establishment in B.C. at any time in the taxation year.
3. have employees in a position that is:
a) in a business carried on in B.C. during the taxation year, and
b) related to the program they are registered in through SkilledTradesBC;
c) hired apprentices registered in both Red Seal and non-Red Seal apprenticeship programs.
4. If employers are active members of a partnership, they can claim their proportionate share of the partnership’s tax credit. Being an active member of a partnership means that they’re engaged in a business similar to the partnership. Limited partners aren’t eligible to claim the credit.
5. Employers aren’t eligible to claim the training tax credit if they’re corporations that are exempt from tax under section 27 of the Income Tax Act or has taxable income that’s exempt under Part 1 of the federal Income Tax Act. They also can’t claim the tax credit if they’re a corporation that is directly or indirectly controlled by an entity that is exempt for either of these reasons.
Application Steps:
Applicants must:
1. For Corporations can claim these credits by completing Schedule 428, British Columbia Training Tax Credit and submitting it with their T2 Corporation Income Tax Return.
2. For Individual employers can claim these credits by completing British Columbia Training Tax Credit (Employers) form (T1014-1) and submitting it with their T1 Individual Income Tax Return.
You must claim the basic tax credit and enhanced basic tax credit no later than 36 months after the end of the tax year for which the eligible salaries and wages are paid.
You must claim the completion tax credit and the enhanced completion tax credit no later than 36 months after the end of the tax year in which the employee completed the requirements for a tax credit level
Documentation Needed:
Applicants must submit:
1. A copy of your employee’s transcript from SkilledTradesBC
2. A copy of the certificate your employee received if they are required to have graduated the program to be eligible for the tax credit.
Other Things to Note:
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Maurice
