Red Seal (Interprovincial) and BC-Recognised (non-Red Seal) programs administered through the Industry Training Authority are eligible. For a complete list of programs click here

BC does not offer a Regular Tax Credit for the first two levels of a Red Seal program. However, the federal government offers a tax credit to employers for the first 24 months that an apprentice is enrolled in a Red Seal program. For more information go to the federal Apprenticeship Job Creation Tax Credit. BC does offer an Enhanced Tax Credit to employers who employ eligible apprentices (see next question) that qualify for the federal Apprenticeship Incentive Grant.

If an employee either qualifies for the federal disability tax credit or is a First Nations person registered as an Indian under the Indian Act (Canada) the employer may claim the Enhanced Tax Credit.

No, the employer gets a credit based on the salary and wages paid to an apprentice during the first 24 months of the apprenticeship. It does not depend on the apprentice completing levels 1 or 2.

The employer gets a credit of 10% (to a maximum of $2,000) of the salary and wages paid to an apprentice in the tax year while the apprentice was still in the first 24 months of the apprenticeship. Effective July 1, 2009 the employer gets a credit of 20% (to a maximum of $4,000) of the salary and wages paid to an apprentice in the tax year while the apprentice was still in the first 24 months of the apprenticeship. The start of the apprenticeship is the date the apprentice is registered in an eligible program with the Industry Training Authority.

Use this formula to calculate your credit amount; the lesser of:

• your eligible salary & wages x [(A/C x 10%) + (B/C x 20%)], and
• (A/C x $2,000) + (B/C x $4,000)^*

^*This is the maximum amount.

Where,
A is the number of days in the tax year before July 1, 2009
B is the number of days in the tax year after June 30, 2009
C is the number of days in the tax year

For example, your eligible salary and wages paid for the taxation year that runs October 1, 2008 to September 30, 2009 are $40,000.

[A] # of days in the tax year before July 1, 2009	273
[B] # of days in the tax year after June 30, 2009	92
[C] # of days in the tax year	365

The credit for the first 24 months is not based on the apprentice completing a level. The 24 month credit is based on the salary and wages paid in the first 24 months.

The Completion Tax Credit is based on the apprentice completing levels 3 or higher of a program. When the apprentice completes level 3 or higher, the employer is entitled to a percentage of the salary and wages paid in the 12 months prior to the apprentice completing the level. The 12 month period can straddle tax years provided that the salary and wages paid before January 1, 2007 are not included.

No, the Training Tax Credit came into effect on January 1, 2007 and only wages paid from January 1, 2007 onwards are eligible.

Yes, proprietors who are resident in British Columbia are eligible for the employer's tax credit.

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 Training Tax Credit.

Eligible salary and wages are the gross salary and wages payable by the employer to an eligible apprentice. It does not include remuneration based on profits, bonuses, and taxable benefits including stock options, and certain unpaid remuneration.

Proprietors complete form T1014-1 and file it with their T1 income tax return. Corporations complete form Sch428 and file it with their T2 income tax return. To access these forms through the Finance website, click here.

Yes.

Yes, the Training Tax Credits are government assistance that is either included in taxable income or a reduction of expenses or cost.

All the information needed to claim the credit is on the apprentice's Industry Training Authority (ITA) transcript. For non-Red Seal programs, the first 24 months is measured by the date appearing on the apprentice's ITA trainee registration card.

Special rules apply to ensure that the maximum amount for a credit is shared between related employers. Click here for more information.

The Canada Revenue Agency (CRA) reviews and audits claims and issues refund cheques where appropriate. If a person or a corporation disagrees with the amount of the credit assessed by the CRA, a Notice of Objection should be filed within 90 days of the date of the Notice of Assessment.

For more information visit the Training Tax Credit homepage or call 1 877 387-3332.