Paid Work Experience Tax Credits

💡What Is This Program?

🎁What Benefits Are Offered?

The Paid Work Experience Tax Credits provide fully refundable tax credits to eligible employers for a percentage of wages and salaries paid to trainee employees (high-school vocational students, high-school apprentices, post-secondary co-op students) and recent co-op graduates working in Manitoba. The credit rates vary by component and year: high-school vocational students receive 25% (up to $5,000 lifetime max); high-school apprentices 25% (up to $5,000 per year); post-secondary co-op students 15% (up to $5,000 per student); co-op graduates 15% (up to $2,500 per year for the first two years). Apprenticeship components offer a common 15% credit (up to $5,000 per year per apprentice) with a 20% rural and northern bonus for Level 1 & 2 apprentices (up to $5,000 per year). The maximum total credit an employer can receive is $35,000 for hiring an apprentice through five levels and two years after certification. Wages and salaries are calculated net of other government funding.

📋What Are the Application Steps & Timeline?

📝Steps to ApplySource

• Determine eligibility as an employer
• Calculate eligible wages and salaries paid to trainees or recent graduates
• Claim the refundable credit in the financial year it is earned

🌐Application PortalSource

https://www.edu.gov.mb.ca/k12/cur/teched/tax_credit/index.html

📤Submission MethodSource

online

🔄Intake TypeSource

rolling

📄What Documents Are Required?

✅Required DocumentsSource

• Proof of wages and salaries paid to trainee employees
• Proof of other government funding received

📐Format RequirementsSource

PDF only, max 10MB

📥Templates AvailableSource

• Co-op Student Hiring Incentive Form

✉️Supporting LettersSource

No letters of support required

💰What Expenses Are Eligible?

🧾Eligible ExpensesSource

• wages and salaries paid to trainee employees
• wages and salaries paid to recent graduates

🚫Ineligible ExpensesSource

• other government funding for that remuneration

📏Expense CapsSource

up to a lifetime maximum of $5,000 per student or apprentice

💳Payment ModelSource

reimbursement

⏪Retroactive Expenses EligibleSource

No

🤝Is Matching Funding Required?

🔀Matching RequiredSource

Yes

📊Matching RatioSource

25% minimum

🏦Eligible Matching SourcesSource

• cash
• in-kind

📚Stacking RulesSource

Yes, can combine with other government funding

🛡️Proof of Matching RequiredSource

Documentation of other government assistance

📊What Are the Reporting Requirements?

🗓️Reporting FrequencySource

annual

📑Reporting RequirementsSource

• income tax return

🔍Audit RequirementsSource

Employers will continue to receive their refundable tax credit when they file their personal or corporate income tax return.