Apprenticeship Job Creation Tax Credit

The Apprenticeship Job Creation Tax Credit (AJCTC) is a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices in respect of employment after May 1, 2006. The maximum credit is $2 000 per year for each eligible apprentice.

Eligibility Criteria

Any business that hires an eligible apprentice.

An eligible apprentice is someone who is working in a prescribed trade (includes the trades currently listed as Red Seal Trades) in the first two years of their apprenticeship contract.  This contract must be registered with a federal, provincial or territorial government under an apprenticeship program designed to certify or license individuals in the trade.

Summary

Employers will be able to claim the credit on their income tax returns, using either Form T2038(IND), Investment Tax Credit (Individuals) or Form T2SCH31, Investment Tax Credit - Corporations.

Additional information is available in the 2006 versions of the General Income Tax and Benefit Guide, Form T2038(IND), Investment Tax Credit (Individuals), Guide T4012, T2 Corporation - Income Tax Guide and Form T2SCH31, Investment Tax Credit - Corporations.

Quebec Contact(s):
See National Contact.

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National Contact(s):
Canada Revenue Agency
Toll-free (information): 1-800-959-5525 (Business Enquiries and Registrations)
Toll-free (publications): 1-800-959-2221 (Forms and Publications)
Web site: http://www.cra.gc.ca/menu-e.html