Funding for Small Business: The Apprenticeship Training Tax Credit (ATTC)

This Canadian government funding for small business tax credit is a refundable tax credit available to employers who hire and train apprentices in certain skilled trades.  The business tax credit is administered by the Canada Revenue Agency (CRA) through the federal tax system on behalf of the province of Ontario.  

Amount of Tax Credit Available to small and medium-sized business owners

• A maximum of 35% of eligible expenses, up to $10,000 may be claimed per year, per employee
• Small businesses are able to claim up to 45% of eligible expenses up to $10,000
• The claim amount per apprentice is $40,000 over the course of 48 months

Definition of a “Small Business” for Ontario Government Funding Purposes

In order to be eligible for this tax credit as a small business must fit the following criteria the small business must be a corporation, partnership or individual with one or more unincorporated businesses with a total payroll for the previous year of $400,000 or less.

Candian Government Funding for Small Business Claim Amounts According to Size of Payroll

• Small businesses as defined above can claim 45% of eligible expenses.
• Businesses with a payroll of over $600,000 can claim 35%
• Businesses with a payroll between $400,000 and $600,000 will be eligible to calculate their claim amount by a formula that combines the two percentages

How to Claim this Business Tax Credit

• File a completed Schedule 552, Ontario Apprenticeship Training Tax Credit, with your return.
• On line 454 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of the refundable credit you are claiming.
• Unincorporated Business owners may claim the credit on Form ON 479, Ontario Credits, included in their personal income tax return.
• Members of partnerships claim their share of the credit on their own corporate or personal tax returns.

Other Important Details about Claiming the ATTC

Those claiming this tax credit must have a copy of the training agreement or contract of apprenticeship to support your claim. If you have lost or misplaced this document, please request a copy from the apprentice or the Ontario Ministry of Training, Colleges and Universities (MTCU) if you are an original party to the contract.

If you are employing an apprentice who previously registered a contract with the MTCU, you must obtain a copy of the original contract of apprenticeship or training agreement from the apprentice, or obtain written consent from the apprentice before contacting the MTCU.

Note:  If you are unable to provide this documentation upon request, your claim may be denied.

Expenses Eligible for Coverage under the ATTC:

• Eligible expenditures are salaries and wages, including taxable benefits (i.e., amounts reported on the apprentice’s T4 slip) paid or payable to an apprentice in a qualifying skilled trade for services performed by the apprentice for the corporation or unincorporated business.
• Eligible expenditures also include fees paid or payable to an employment agency by a corporation or unincorporated business for services performed by the apprentice in a qualifying apprenticeship.
• All eligible expenditures must be attributable to an Ontario permanent establishment (place of business) and must be reasonable in the circumstances.
• Service Trades;
• Motive Power Trades;
• Construction Trades, and;
• Industrial Trades

Trades Eligible for Government Funding for Small Businesses through the ATTC include:

• Service Trades;
• Motive Power Trades;
• Construction Trades, and;
• Industrial Trades

Have Questions Regarding this Government Funding for Small Business Opportunity?

For further information regarding apprenticeship eligibility requirements, an exhaustive list of eligible trades, and a list of ineligible expenses please contact Ryan Weaver by email, ryan@mentorworks.ca

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