Shipbuilding and Ship Repair Industry Tax Credit
$5,250
Tax Credit
Description:
The shipbuilding and ship repair industry tax credit is a tax credit for eligible employers that employ apprentices in the B.C. shipbuilding and ship repair industry.
Comments on Funding:
You can claim the following amounts:
Basic tax credit – 20% of salary and wages (up to $5,250) paid to an apprentice in the tax year during the first 24 months of an eligible Red Seal or non-Red Seal program. The basic credit does not require the apprentice to complete any technical training or a set number of hours.
Completion tax credit – 20% of salary and wages (up to $5,250) paid to an apprentice in the 12 month period prior to the apprentice completing the requirements for tax credit level 3 or 4 of an eligible program. The completion tax credit is claimed in the tax year the level is completed.
Enhanced tax credit – the basic and completion tax credits are enhanced by 50% (up to $2,625) for apprentices who are eligible First Nations individuals or persons with disabilities. This is in addition to the basic credit or the completion credit. First Nations individuals are persons registered as Indians under the Indian Act (Canada). Persons with disabilities are individuals who qualify for the federal disability tax credit.
January 1, 2027
Eligibility:
Applicants must be an employer whose principal business is constructing, repairing or converting ships. An eligible apprentice is an employee who is registered as an apprentice with SkilledTradesBC and is enrolled in an eligible apprenticeship program.
Application Steps:
Applicants must first be applied against total income tax payable. If you are completing the tax return for a corporation, use Schedule 430, British Columbia Shipbuilding and Ship Repair Industry Tax Credit, of the T2 return. If you are otherwise eligible for this tax credit and are not a corporation and required to file a T1 return, complete form T1014-2, British Columbia Shipbuilding and Ship Repair Industry Tax Credit (Employers), with your T1 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. Schedule 430, British Columbia Shipbuilding and Ship Repair Industry Tax Credit, of the T2 return if you are completing the tax return for a corporation
2. T1014-2, British Columbia Shipbuilding and Ship Repair Industry Tax Credit (Employers), with your T1 return if not a corporation and required to file a T1 return
Other Things to Note:
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Maurice
