- What is the Apprenticeship Training Tax Credit (ATTC)?
- The tax credit is refundable. What does this mean?
- Who can claim the ATTC?
- What are the most recent changes affecting the ATTC?
- What is a qualifying trade?
- How do I claim the tax credit?
- What supporting documents do I need?
- Does the employer need to sign an agreement to initiate the apprenticeship?
- What do I do if I am hiring an apprentice who had previously registered with another company or who is employed through a union or employment agency?
- How do I determine the start/end date(s) of a qualifying apprenticeship?
- What do I do if the Contract of Apprenticeship or Training Agreement has been lost or misplaced?
- What is the eligible period for Ontario Youth Apprenticeship Program (OYAP) students retained as salaried apprentices after leaving high school and the completion of their OYAP program?
- When an apprentice is registered for two separate trades simultaneously, can the business claim the credit for both trades?
- What do I do if I did not claim the ATTC for a taxation year for which I was eligible?
- What do I do if I have received a phone call or written notice requesting additional information?
- What are the roles of the different government authorities involved in administering the ATTC?
- How do I get more information on the ATTC?
What is the Apprenticeship Training Tax Credit (ATTC)?
The ATTC is a refundable tax credit provided to corporations and unincorporated businesses employing apprentices in certain skilled trades. This credit allows qualifying businesses to claim 35% of eligible expenditures (45% for small businesses) made during the first 48 months of an apprenticeship program, up to a maximum of $10,000 per year for each apprentice.
The tax credit is refundable. What does this mean?
It is possible that a corporation or unincorporated business might be entitled to a refund after claiming a refundable tax credit such as the ATTC. If the amount of the credit claimed exceeds the balance of tax otherwise payable, the excess amount is refundable to the taxpayer.
Who can claim the ATTC?
The tax credit is available to businesses that:
- have a permanent establishment in Ontario
- are subject to Ontario Income Tax
- incur eligible expenditures in training apprentices in designated skilled trades.
This tax credit is not available to limited partners.
What are the most recent changes affecting the ATTC?
The 2009 Ontario Budget introduced enhancements to the ATTC. These changes came into effect on March 27, 2009.
| Specified Percentage (%) of Eligible Expenditures | Yearly Maximum (per apprentice) |
Qualifying Period (from date of original registration) |
|
|---|---|---|---|
| Before March 27, 2009 | 25% (30% for small businesses) | $5,000 | Up to 36 Months |
| After March 26, 2009 | 35% (45% for small businesses) | $10,000 | Up to 48 Months |
What is a qualifying trade?
There are over 150 apprenticeable trades in Ontario in four sectors: construction, industrial/manufacturing, motive power and service. Over 120 of these trades are currently eligible for the ATTC. Please refer to Appendix A of Information Bulletin 4015 for a list of the qualifying skilled trades and trade codes.
How do I claim the tax credit?
The ATTC is claimed annually on the business' income tax return. Please note that this tax credit is not available to limited partners.
- Corporations: The ATTC is claimed on the T2 Corporations Income Tax Return using Schedule T2SCH552.
- Unincorporated Businesses: Sole proprietors and partners may claim the ATTC on Form ON479 - Ontario Credits included in the T1 personal income tax return.
Please visit the Canada Revenue Agency (CRA) website or call 1 800 959-2221 to obtain the appropriate forms.
What supporting documents do I need?
Although not required at the time of filing, the employer is required to provide documents to support ATTC claims upon request. These documents may include the company's payroll records and the Contract of Apprenticeship or Training Agreement. Records must be kept and maintained by the business for a minimum of 6 years (7 years for taxation years ending prior to January 1, 2009) following the end of the taxation year.
For the purpose of this credit, the Contract of Apprenticeship or the Training Agreement is used to verify requirements including the eligible apprenticeship period. When employing an apprentice who registered while employed by another business, it is necessary to request and obtain a copy of the original Contract of Apprenticeship or Training Agreement before employment begins.
Taxpayers who are unable to provide supporting documentation upon request may have their claims rejected.
Does the employer need to sign an agreement to initiate the apprenticeship?
Yes. The employer and apprentice must enter into a Contract of Apprenticeship or a Training Agreement for each eligible apprenticeship. If an apprentice changes employers, the new employer and apprentice must sign a new Training Agreement or a transfer of Contract of Apprenticeship, depending on the skilled trade.
What do I do if I am hiring an apprentice who had previously registered with another company or who is employed through a union or employment agency?
It is important that the employer requests and obtains a copy of the original Contract of Apprenticeship or Training Agreement prior to signing a Transfer of Contract of Apprenticeship or a new Training Agreement. These documents are used to substantiate claims and to verify the eligible apprenticeship period.
Please note that employers cannot request original Contracts of Apprenticeship or Training Agreements from the Ministry of Training, Colleges and Universities (MTCU) unless they are a party to that contract or have obtained written consent from the apprentice.
How do I determine the start/end date(s) of a qualifying apprenticeship?
The apprenticeship begins on the date the original Contract of Apprenticeship or Training Agreement is registered with the MTCU. The eligible ATTC apprenticeship period extends up to 48 months (36 months for years prior to March 26, 2009) from this original registration date.
A business employing an apprentice who registered while with a previous employer may still claim the ATTC on eligible expenditures paid by it to the apprentice provided the eligible apprenticeship period has not ended. The apprenticeship period is still considered to have commenced on the original registration date (i.e. the date the Contract of Apprenticeship or Training Agreement was registered with the MTCU by the first employer, or the first employer acting through a union or a local or joint apprenticeship committee and the apprentice.)
What do I do if the Contract of Apprenticeship or Training Agreement has been lost or misplaced?
If the Contract of Apprenticeship or the Training Agreement has been lost or misplaced, please request a copy from the apprentice. If this is not possible, you may contact your local MTCU field office or call 1 800 387-5656.
If you are not a party to the original contract, you will need the apprentice to obtain this document on your behalf. Alternatively, you may ask the apprentice to provide you with written permission to make this request.
There are currently no substitutes for either document.
What is the eligible period for Ontario Youth Apprenticeship Program (OYAP) students retained as salaried apprentices after leaving high school and the completion of their OYAP program?
The ATTC eligibility begins on the original date the Training Agreement was registered with the MTCU and extends up to 48 months (36 months for years prior to March 26, 2009) from that registration date.
When an apprentice is registered for two separate trades simultaneously, can the business claim the credit for both trades?
Yes. In the above case the business would have to allocate the time worked to each specific trade. A business can only claim for the time their apprentice worked on a specific trade.
What do I do if I did not claim the ATTC for a taxation year for which I was eligible?
Corporations and unincorporated businesses may file adjustments to a tax return for taxation years that are within their normal reassessment period. Requests for adjustments should be directed to the CRA tax centre that serves your business.
Corporations wishing to make adjustments by amended return, for taxation years ending before January 1, 2009, must send their return to the address below:
Ministry of Finance
Corporations Tax
33 King St W
PO Box 622
Oshawa ON L1H 8H6
For more information on reassessments please refer to the following:
What do I do if I have received a phone call or written notice requesting additional information?
If you have received any form of notice that your application is incomplete, you must ensure you understand the instructions and provide all requested documents or information by the listed due date. If you do not understand the request, contact the government authority using the information provided in the notice as soon as possible.
It is important to file your return as a completed package. Incomplete returns generate delays in processing. Failure to provide supporting documentation upon request may be seen as reason to deny a claim.
What are the roles of the different government authorities involved in administering the ATTC?
There are four government bodies associated with the administration of the ATTC. The roles of these parties are briefly described below:
- The Ontario Ministry of Training, Colleges and Universities (MTCU) assists with the promotion of the apprenticeship program to employers and the general public. This ministry is also responsible for the registration of eligible apprentices and should be the first point of contact for parties interested in employing or becoming an apprentice.
- The Canada Revenue Agency (CRA) administers the ATTC through the federal tax system. The CRA is responsible for providing administrative support related to filing claims such as forms distribution, verification and audit functions, and interpretations and rulings.
- The Ontario Ministry of Finance evaluates service delivery and performance related to the administration of this credit and issues general information regarding the ATTC. Publications regarding the credit can be found on the Ministry of Finance website.
- The Ontario Ministry of Finance sets overall policy and is responsible for the ATTC legislation.
How do I get more information on the ATTC?
For more information on the apprenticeship program including apprenticeship trades, trade codes and how to register, please contact your local MTCU field office, or call 1 800 387-5656.
For general tax enquiries regarding this tax credit, taxpayers may contact the CRA at:
- 1 800 959-5525 (English)
- 1 800 959-7775 (French)
- 1 800 665-0354 (Teletypewriter)
Or visit:
