Tax Credits – Training Tax Credits
On September 1, 2009, the government introduced legislation to double the basic training tax credit from 10% of wages (up to $2,000 per apprentice) to 20% of wages (up to $4,000 per apprentice), effective July 1, 2009. For employers with taxation years that overlap July 1, 2009, the increase in the basic training tax credit is prorated based on the number of days in the taxation year before, and after, July 1, 2009.
This page provides an overview of the Training Tax Credit for employers. For more detailed information go to the bulletin located here or, our Training Tax Credit Frequently Asked Questions for Employers. For information about the Training Tax Credit for apprentices, click here.
Training Tax Credits provide refundable income tax credits for employers who employ apprentices enrolled in apprenticeship programs administered through the Industry Training Authority (ITA). An employer includes a corporation, an individual that is a sole proprietor and partnerships.
The ITA oversees British Columbia's industry training and apprenticeship system, including the administration of Red Seal and B.C.-recognized (non-Red Seal) training programs.
There are three main elements to the training tax credits:
- Basic credits for non-Red Seal training programs
- Completion credits for both Red Seal and non-Red Seal training programs
- Enhanced credits for First Nations individuals and persons with disabilities
The rates in this table represent the percentage of applicable wages.
| |
Non-Red Seal |
Red Seal |
| |
Regular |
Enhanced |
Red Seal |
Enhanced |
| Basic |
1st 12 months |
10% Max 2000 |
15% Max 3000 |
Federal |
15% Max 1000* |
| Basic |
2nd 12 months |
10% Max 2000 |
15% Max 3000 |
Federal |
15% Max 1000* |
| Completion |
Level 3 |
15% Max 2500 |
22.5% Max 3750 |
15% Max 2500 |
22.5% Max 3750 |
| Completion |
Level 4 or higher |
15% Max 3000 |
22.5% Max 4500 |
15% Max 3000 |
22.5% Max 4500 |
* The amounts are in addition to the federal credit
Basic Training Tax Credits
The federal incentives are limited to the first 24 months of enrolment in Red Seal apprenticeship programs. The employer's tax credit is 10% of wages up to $2,000 per apprentice. For more information about the federal tax credit, please see the Canada Revenue Agency website.
B.C.'s Basic training tax credits provides a credit based on the wages paid in the tax year to the apprentice while the apprentice was still in the first 24 months of a non-Red Seal apprenticeship program. The employer's Basic credit does not require the apprentice to complete a level. Wages paid before January 1, 2007 do not qualify.
Completion Training Tax Credits
British Columbia's Completion training tax credits apply to both Red Seal and
non-Red Seal apprenticeship programs. Unlike the Basic credit, the Completion credit requires the apprentice to complete level 3 or higher of a program for an employer to get the credit.
The wages that qualify for the Completion credit are those wages paid to an employee in the 12 months prior to the apprentice completing the level. Levels completed before and wages paid before January 1, 2007 do not qualify.
Enhanced Training Tax Credits
Enhanced credits are provided with respect to First Nations individuals or persons with disabilities. Eligible First Nations individuals are those persons who are registered as Indians under the Indian Act (Canada). Persons with disabilities are those who are eligible for the disability amount credit on their income tax return.
Programs
A list of eligible programs and the breakdown of the programs into tax levels can be found here. If your apprentice is enrolled in a program through the Industry Training Authority that is not listed, you may still be eligible for a training tax credit. For more information, please call 250 387-0690.
Claiming the credit
An employer can claim more than one credit in a year for an employee, provided that the employee meets the requirements for each level in the year.
Corporations claim these credits using Schedule 428 British Columbia Training Tax Credit and file it with their T2 Corporation Income Tax Return.
Individual employers claim these credits using form T1014-1 British Columbia Training Tax Credit (Employers) and file it with their T1 Income Tax Return.
Legislation
Please see Part 9 of the British Columbia Income Tax Act, the Training Tax Credits Regulation and the Budget Measures Implementation Act (2), 2009.
Training Tax Credit Calculator for Employers
Training Tax Credit Calculator for Employers
For more information, please contact us:
Income Taxation Branch
PO Box 9444 Stn Prov Govt
Victoria BC V8W 9W8
Telephone: 1 877 387-3332
Fax: 250 356-9243
E-mail: ITBTaxQuestions@gov.bc.ca
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