Line 10 – Ontario co-operative
education tax credit
If you hired one or more co-op students enrolled in an Ontario university or college, you may be able to claim a tax credit of up to 25% to 30% of eligible expenditures, to a maximum of $3,000 per student per qualifying work placement.
Eligible expenditures are reasonable salaries, wages, and other remuneration paid or payable to a student in a qualifying work placement, or a reasonable fee paid or payable to an employment agency for a qualifying work placement. The student must work at a permanent establishment of yours in Ontario.
You must reduce your eligible expenditures by the amount of any government assistance you received, are entitled to receive, or may reasonably expect to receive for the eligible expenditures.
A qualifying work placement is generally four consecutive months ending in the tax year of employment of a student under a qualifying co-operative educational program of an eligible educational institution. The minimum employment period is 10 consecutive weeks. The maximum employment period is 16 consecutive months. The eligible educational institution must provide you with a certificate for each qualifying work placement for each student.
Claiming the credit
For each qualifying work placement that ended in 2015, claim this credit to a maximum of $3,000 for eligible expenditures.
If the total of the salaries and wages paid in the previous tax year was:
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$600,000 or more, claim 25% of eligible expenditures for the qualifying work placement;
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not more than $400,000, claim 30% of eligible expenditures for the qualifying work placement; or
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more than $400,000 but less than $600,000, complete the calculation for line 10 on the Provincial Worksheet in this book.
If in 2015 you repaid government assistance that was related to eligible expenditures for this tax credit in a prior year, the amount of assistance you repaid will qualify for the tax credit for 2015. The tax credit is equal to the amount of government assistance repaid multiplied by the tax credit rate for the year the eligible expenditures were reduced by the assistance.
Enter your claim on line 10 of Form ON479.
For more information, see Information Bulletin 4014, Co-operative Education Tax Credit, at www.ontario.ca/finance or call the Ontario Ministry of Finance at one of the numbers listed under "For more information" on page 1.
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