BC Training Tax Credit for Employers: Enhanced Tax Credit
$6,000.00
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.
An Enhanced Tax Credit is available to employers of First Nations individuals and persons with disabilities that are entitled to a basic or completion tax credit, or that have received the federal apprenticeship job creation tax credit for the year.
Comments on Funding:
The Enhanced Tax credit for the:
– Basic tax credit is 50% of basic tax credit up to $2,000; total maximum tax credit is up to $6,000;
– Completion tax credit level 3 is 50% of completion tax credit for level 3 up to $1,250; total maximum tax credit is up to $3,750;
– Completion tax credit level 4 is 50% of completion tax credit for level 4 up to $1,500; total maximum tax credit is up to $4,500;
– Federal apprenticeship job creation Tax credit is 5.5% of eligible salary and wages paid up to $1,000.
Continuous Intake
Eligibility:
Applicants must be employers of First Nations individuals and persons with disabilities, who:
1. are entitled to a basic or completion tax credit, or
2. have received the federal apprenticeship job creation tax credit for the year.
Employers 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:
You can claim more than one credit in a year for an employee, provided the employee meets the requirements for each level in the year. The training tax credit is refundable, but must first be applied against total income tax payable.
Corporations can claim these credits by completing Schedule 428, British Columbia Training Tax Credit and submitting it with their T2 Corporation Income Tax Return.
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. copy of their Certificate of Indian Status card, if you’re claiming an enhanced tax credit for your employee who’s a First Nations individual, you may be required to provide a
2. proof of entitlement if you’re claiming an enhanced tax credit for your employee who’s a person with disabilities, you may be required to provide
Other Things to Note:
Eligible First Nations individuals are persons registered as Indians under the Indian Act (Canada).
The term persons with disabilities refers to individuals who are eligible for the disability amount credit on their income tax return.
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Maurice
