CRA Apprenticeship Job Creation Tax Credit (AJCTC)

There’s a new government incentive that your company might be able to take advantage of (started May 2, 2006). Timing: you have 1 year from your fiscal year end to file. The link is below for you to read through. In a nutshell, you get an ITC (Investment Tax Credit) on the corporate tax return for up to $2,000 per apprentice (for their first 2 years of apprenticeship) if they are in a qualifying trade.

The link is pretty well laid out. The most difficult part is to get your employees registered as apprentices. We can then claim the ITC on the tax returns.

We just put through a claim for a hair stylist working at one of our clients’ salon. The company is getting $1900 back.

The formula is Wage paid to the individual in the year (from May 2, 2006) * 10%.

Here’s the link

http://www.cra-arc.gc.ca/whatsnew/apprenticeship-e.html#q4