Canadian Tax Credits and Business Funding Grants for Hiring Apprentices

Apprenticeship Funding Update: Read about currently available grants and tax credits to support the hiring and training of apprentices.

As mentioned by one of our previous articles regarding the recent allocation of Canadian Government Funding to Skills Canada, the Federal and Provincial Governments provide significant amounts of funding to encourage young Canadians to pursue successful careers in skilled trades. In addition to these programs, the Canadian Government also provides funding for small business in Ontario to encourage the hiring of young apprentices in certain high demand trades.

Canadian Government Grants and Tax Credits for Hiring Apprentices in Red Seal Trades

Ontario Businesses looking to hire and train a new apprentice in a specialized skilled trade, may be interested in filing for one of the following government grants and tax credit programs:

• Ontario Apprenticeship Training Tax Credit (OATTC): A provincial refundable tax credit equal to 35% – 45% of the salaries and wages for a qualifying apprentice or $10K per year to a max of $40K over the first 4 years of applicable apprenticeships.
• Federal Apprenticeship Job Creation Tax Credit (AJCTC): A federal non-refundable tax credit equal to 10% of the salaries and wages for a qualifying apprentice to a max of $2K per year for each eligible apprentice.
• Apprenticeship Employer Signing Bonus: A program providing $2K in non-repayable government grants for registering a new apprentice in a sectors with high demand for skilled trade workers.
• Employer Bonus Program: A program providing $1K in non-repayable government grants for employers whose apprentices complete an apprenticeship program in any trade or occupation.

These programs may only be applicable to certain red seal trades, for more information please consult with Employment Ontario directly.

Learn More About Canadian Government Funding for Small Business

Mentor Works Ltd. is an Ontario-based organization that provides Canadian Government funding advice and support to Canadian SMEs, primarily in the manufacturing and exporting industries. While our expertise lies in securing government grants and loans for businesses, we can guide you through the process of securing apprenticeship funding. To get started, we recommend contacting a Government Funding Planner and exploring the government funding landscape by downloading the Canadian Small Business Funding Guide.