Ontario Apprenticeship Tax Training Credit (OATTC)

Program Responsibility
Ontario Ministry of Finance / Ministry of Training, Colleges and Universities.

Program Description
The Apprenticeship Training Tax Credit encourages employers to hire and train apprentices in certain skilled trades. Corporations and unincorporated businesses are eligible for a refundable tax credit on wages and salaries paid or payable for services performed after May 18, 2004, by an eligible apprentice during the first 36 months of an apprenticeship.

Eligibility Criteria
The credit is available to businesses, which have permanent establishments in Ontario, are subject to Ontario Income Tax and incur eligible expenditures in respect of an eligible apprentice. Eligible apprentices are in a qualifying skilled trade and must be hired before January 1, 2008. Qualifying skilled trades include designated service, construction, industrial and motive power trades.

Funding
Corporations are eligible for a 25 per cent refundable tax credit on eligible expenditures incurred with respect to eligible apprentices. For businesses with total payroll costs not exceeding $400,000, the tax credit rate is increased to 30 per cent. An employer is eligible for a tax credit of up to $5,000 per year per eligible apprentice to a maximum of $15,000 over the first 36 months of the apprenticeship. The maximum annual tax credit of $5,000 is pro-rated for the number of days the apprentice is employed with that employer during the year.

Miscellaneous/Other Information
Eligible corporations must complete CT23 Schedule 114 and claim the tax credit on their CT23, CT23 Short or CT8 tax return. Eligible employers operating unincorporated businesses claim the tax credit on the Ontario Credits form ON479 included in their personal income tax return. Members of a partnership claim their share of the ATTC on their own corporate or personal tax returns.

Contact Information
For information relating to apprenticeship trades or apprenticeship trade codes, please contact your local Ministry of Training, Colleges and Universities Field Office or call 1-888-JOB-GROW.

Locally, contact Employer Services at Community Employment Services in Woodstock.

For further details, see Apprenticeship Training Tax Credit at Ontario Ministry of Revenue for more information and forms.