Training tax credit for employers

💡What Is This Program?

🎁What Benefits Are Offered?

Refundable income tax credits for employers who employ apprentices in B.C. This includes Basic credits for non-Red Seal programs (first 24 months), Completion credits for achieving Level 3 or 4 (Red Seal or non-Red Seal), and Enhanced credits for employing First Nations individuals or persons with disabilities. The enhanced credit can also apply in relation to the federal Apprenticeship Job Creation Tax Credit.

📋What Are the Application Steps & Timeline?

📝Steps to ApplySource

• Determine eligibility based on B.C. income tax status and apprenticeship program enrollment.
• Calculate eligible salary and wages paid to apprentices.
• Complete the appropriate tax credit forms: Schedule 428 for corporations or T1014-1 for individuals.
• Submit the completed forms with the respective income tax returns (T2 for corporations, T1 for individuals).
• Claim the tax credit within the specified time frame (no later than 36 months after the end of the tax year).

🌐Application PortalSource

https://www2.gov.bc.ca/gov/content/taxes/income-taxes/corporate/credits/training/employer

📤Submission MethodSource

mail

📅Key DatesSource

No later than 36 months after the end of the tax yearClaim basic tax credit

No later than 36 months after the end of the tax yearClaim completion tax credit

🔄Intake TypeSource

fixed-deadline

📄What Documents Are Required?

✅Required DocumentsSource

• A copy of your employee’s transcript from SkilledTradesBC
• A copy of the certificate your employee received if they are required to have graduated the program to be eligible for the tax credit
• A copy of their Certificate of Indian Status card if claiming enhanced tax credit for First Nations individuals
• Proof of entitlement if claiming enhanced tax credit for persons with disabilities

📐Format Requirements

PDF only, max 10MB

📥Templates AvailableSource

• British Columbia Training Tax Credit (Employers) form (T1014-1)
• Schedule 428, British Columbia Training Tax Credit

✉️Supporting Letters

No supporting letters required.

💰What Expenses Are Eligible?

🧾Eligible ExpensesSource

• gross salary and wages payable to an eligible apprentice

🚫Ineligible ExpensesSource

• remuneration based on profits
• bonuses
• taxable benefits including stock options
• certain unpaid remuneration
• government and non-government assistance

📏Expense CapsSource

Basic tax credit 20% of eligible salary and wages up to $4,000; Completion credit level 3 up to $2,500; level 4 up to $3,000; Enhanced tax credit up to $6,000.

💳Payment ModelSource

reimbursement

⏪Retroactive Expenses EligibleSource

No

🤝Is Matching Funding Required?

🔀Matching RequiredSource

No

📊Matching RatioSource

null

🏦Eligible Matching SourcesSource

• cash

📚Stacking RulesSource

No

🛡️Proof of Matching RequiredSource

A copy of your employee’s transcript from SkilledTradesBC

📊What Are the Reporting Requirements?

🗓️Reporting FrequencySource

annual

📑Reporting RequirementsSource

• A copy of your employee’s transcript from SkilledTradesBC
• A copy of the certificate your employee received if they are required to have graduated the program to be eligible for the tax credit
• If claiming enhanced tax credit for First Nations individuals, a copy of their Certificate of Indian Status card
• If claiming enhanced tax credit for persons with disabilities, proof of entitlement

🔍Audit RequirementsSource

The Canada Revenue Agency (CRA) reviews and audits claims and issues a refund where appropriate.

📢Branding RequirementsSource

You must acknowledge the funding received from the Government of Canada.

🗄️Record Retention PeriodSource

36 months