Line 9 – Ontario apprenticeship
training tax credit
If you hired one or more eligible apprentices in one or more qualifying skilled trades to work at your permanent establishment located in Ontario, you may be able to claim a tax credit for eligible expenditures, to a maximum of $5,000 per apprentice ($10,000 for apprenticeship programs that started on or before April 23, 2015).
Eligible expenditures are reasonable salaries and wages you paid to an apprentice employed in a qualifying apprenticeship at a permanent establishment of yours in Ontario, or reasonable fees paid or payable to an employment agency, for services provided by the apprentice during the first 36 months of the apprenticeship training program (48 months for apprenticeship programs that started on or before April 23, 2015).
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.
Claiming the credit
If the total of the salaries and wages paid in the previous tax year by you, if you were a sole proprietor, or by a partnership, if you were a partner, was:
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$600,000 or more, the credit is 25% of eligible expenditures for each apprentice who started an apprenticeship program after April 23, 2015, and 35% of eligible expenditures for each apprentice who started an apprenticeship program on or before April 23, 2015;
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not more than $400,000, the credit is 30% of eligible expenditures for each apprentice who started an apprenticeship program after April 23, 2015, and 45% of eligible expenditures for each apprentice who started an apprenticeship program on or before April 23, 2015; or
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more than $400,000 but less than $600,000, complete the calculation for line 9 on the Provincial Worksheet in this book.
The maximum annual credit for each apprentice employed by you in a qualifying apprenticeship for the entire year is:
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$5,000 for each apprentice who started an apprenticeship program after April 23, 2015; and
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$10,000 for each apprentice who started an apprenticeship program on or before April 23, 2015.
To determine the maximum amount that can be claimed for an apprentice who was employed for only part of the year, multiply the maximum annual amount by the number of days that you employed the apprentice, and then divide by the number of days in the year.
You can claim an Ontario apprenticeship training tax credit for each eligible apprentice up to a maximum of $15,000 over a 36-month period for apprentices who started an apprenticeship program after April 23, 2015 or $40,000 over a 48-month period for apprentices who started an apprenticeship program on or before April 23, 2015.
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 9 of Form ON479.
For more information, go to 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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