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:
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:
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:
1. Applicants can claim more than one credit in a year for an employee, provided the employee meets the requirements for each level in the year;
2. Corporations can claim these credits by completing Schedule 428, British Columbia Training Tax Credit and submitting it with their T2 Corporation Income Tax Return;
3. 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.
Documentation Needed:
Applicants must provide:
1. A copy of your employee’s transcript from SkilledTradesBC
2. A copy of the certificate their 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
