Shipbuilding and Ship Repair Industry Tax Credit
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.
An eligible employer is an employer whose principal business is constructing, repairing or converting ships.
Offered by Ministry of Finance
Amount
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 program; completion tax credit: 20% of salary and wages (up to $5,250) paid in the 12 months before the apprentice completes level 3 or 4; enhanced by 50% (up to $2,625) for apprentices who are eligible First Nations individuals or persons with disabilities; refundable
Quick eligibility check
Who can apply
- Eligible employers that employ apprentices in the B.C. shipbuilding and ship repair industry
- An eligible employer is 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
- For the purpose of the credit, ships are defined as sea-going vessels propelled by engine but do not include vessels ordinarily used for personal or recreational purposes
- Salary and wages you pay an eligible apprentice before January 1, 2027. Budget 2026 extended this deadline by one year to December 31, 2027
- When an employer engages in more than one business, principal business is determined by an examination of all the facts concerning each of the various types of business
- If your principal business is building boats, yachts or other water crafts ordinarily used for personal or recreational purposes, you are not eligible to claim the credit
- I repair both recreational yachts and boats but occasionally I repair eligible ships
- The construction, repair or conversion of ships must be your principal business to claim the shipbuilding and ship repair industry tax credit
- The shipbuilding and ship repair industry tax credit is only available to employers
- However, an eligible apprentice may claim the B.C. training tax credits for individuals
- For all subsequent taxation years an eligible employer cannot claim both the shipbuilding and ship repair industry tax credit and the B.C. training tax credit for employers
- Yes, a corporation or an individual that is a member of a partnership, other than a specified member, can claim their proportionate share of the partnership's shipbuilding and ship repair industry tax credit
- 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
About the funding
The shipbuilding and ship repair industry tax credit is based on the salary and wages you pay an eligible apprentice before January 1, 2027. Budget 2026 extended this deadline by one year to December 31, 2027.
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
Show all funding details
- 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
The shipbuilding and ship repair industry tax credit is refundable, but must first be applied against total income tax payable.
What is included in eligible salary and wages?
Eligible salary and wages are the gross salary and wages you pay to an eligible apprentice.
Claimed through the Canada Revenue Agency on your corporate tax return.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Apprenticeship Job Creation Tax Credit | Tax Credit | Non-refundable investment tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices, to a maximum credit of $2,000 per year for each eligible apprentice | Open |
| Canadian Journalism Labour Tax Credit | Tax Credit | Refundable tax credit of 35% (January 1, 2023 to December 31, 2026 | Open |
