Apprenticeship Job Creation Tax Credit
The apprenticeship job creation tax credit (AJCTC) is a non-refundable investment tax credit (ITC) equal to 10% of the eligible salaries and wages payable to eligible apprentices in respect of employment after May 1, 2006. The maximum credit an employer can claim is $2,000 per year for each eligible apprentice. If your business hires an eligible apprentice, you qualify to claim the credit.
Offered by Canada Revenue Agency
Amount
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
Quick eligibility check
Who can apply
If your business hires an eligible apprentice, you qualify to claim the credit.
An eligible apprentice is someone who is working in a prescribed trade in the first two years of their apprenticeship contract. This contract must be registered with a federal, provincial, or territorial government under an apprenticeship program designed to certify or license individuals in the trade.
A prescribed trade includes the trades currently listed as Red Seal Trades. For more information, see Red Seal Program.
About the funding
The apprenticeship job creation tax credit (AJCTC) is a non-refundable investment tax credit (ITC) equal to 10% of the eligible salaries and wages payable to eligible apprentices in respect of employment after May 1, 2006. The maximum credit an employer can claim is $2,000 per year for each eligible apprentice.
Also, any unused credit may be carried back 3 years and carried forward 20 years.
When two or more related employers employ the same apprentice, special rules apply to ensure that the $2,000 limit is allocated to only one employer.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Canadian Journalism Labour Tax Credit | Tax Credit | Refundable tax credit of 35% (January 1, 2023 to December 31, 2026 | Open |
