Tax Credits for Practicums in the Workplace

This document was prepared with the information on the L'Inforoute FPT’s Web site.

This measure allows businesses (companies or individuals) to benefit from a tax credit when they participate in student training through internships in the workplace organized by educational institutions such as high schools, colleges and universities.

Eligibility Criteria

To benefit from the tax credit program, companies must:

• carry on a business in Quebec;
• not be tax exempt other than due to a 3- or 5-year tax holiday granted to new companies or the tax holiday granted to small and mid-sized (SME) manufacturing companies in remote resource regions.

The company may also be affiliated with a partnership. In such a case, the first two criteria stated above apply to the company in question.

When the company is affiliated with a partnership, the expenses eligible under the tax credit program correspond to its share (based on profit sharing) of the eligible expenses incurred by the company.

Eligible Area

The territories in the following administrative regions and CMAs are eligible:

• Bas-Saint-Laurent (region 01);
• Saguenay--Lac-Saint-Jean (region 02);
• Haut-Saint-Maurice CMA;
• Mékinac CMA;
• Abitibi-Témiscamingue (region 08);
• Côte-Nord (region 09);
  Nord-du-Québec (region 10);
• Gaspésie--Îles-de-la-Madeleine (region 11);
• Antoine-Labelle CMA;
• Vallée-de-la-Gatineau CMA;
• Pontiac CMA.

Eligible Activities

Internships are programs that involve an evaluation for the purpose of granting a diploma or attestation of learning and training offered within work-study programs. A number of educational programs are targeted:

• internships completed by students registered in vocational programs for semi-skilled occupations;
• internships completed by students registered in a life skills and work skills educational program (ISPJ);
• internships completed as part of vocational and technical training;
• internships completed by university students.

Summary

The financial assistance is granted in the form of a refundable tax credit for eligible expenses that consist of, among other things, base salary paid to the trainee up to $18/hour.

For companies:

•  30 % of eligible expenses up to $750 (vocational, technical and university training) or $600 (semi-skilled occupations, ISPJ, SIS) per trainee, per week, according to the specifics of the training program in which the trainee is registered.

For more information, call at 514 864-4155, 418 659-4155 or 1-800-450-4155, or consult the Web site at http://www.inforoutefpt.org/creditimpot/en/

Form: http://www.revenu.gouv.qc.ca/eng/formulaires/co/co-1029_8_33_6-v.asp