There are several projections for the shortage of skilled trade labor on the federal and provincial level. The government, on all levels, have provided various incentives to both employers and apprentices in order to fill this gap.
Note: Supports for apprentices and employers/sponsors are currently being reviewed. Visit the Government of Ontario’s web page for more information and ongoing updates.
Incentives for Apprentices
For apprentices, apart from having the unique ability to earn while you learn there are also several financial incentives provided by the government to offset the cost of education. Some of the incentives available are:
- Apprenticeship Incentive Grant (AIG): This is a taxable cash grant of $1000 per year/level. There is a maximum amount of $2000 for apprentices. This is available to apprentices who have completed their first year and second year or level of an apprenticeship program in a Red Seal trade
- Apprenticeship Completion Grant (ACG): This is a taxable cash grant for registered apprentices who complete their apprenticeship training and obtain their journey person certification in a designated Red Seal Trade
- Apprenticeship Incentive Grant for Women (AIG-W): This is a relatively new incentive to support women to enter, progress, and complete their trainings in Red Seal trades. This is a taxable cash grant of $3000per year/level up to a maximum amount of $6000 per person
- Tradesperson’s Tools Deduction: This provides employed tradespeople with an annual deduction of up to $500 to cover the cost of new tools necessary for their trades.
- Apprenticeship Scholarship: The government provides up to $1000 for apprentices who are required by their employers to undertake additional academic training to participate in a specific trade
- Loans for Tools: Apprentices have the ability to take an interest free loan of $800 to buy tools that are necessary for their apprenticeship
- Tuition Tax Credit: You may be eligible for a tuition tax credit if you had to pay examination fees to allow you to practice in your trade in Canada
- Canada Apprentice Loan: Apprentices can apply for interest free loans to help cover expenses or support their families during periods of technical training
- Non- Red Seal Apprenticeship Incentive: This is available for apprentices who have received an Ontario Certificate of Apprenticeship for a non-Red Seal trade that does not have any of the following: Ontario Certification of Qualification examination, Ontario Certification of Apprenticeship and an Ontario Certificate of Qualification for a trade that has an Ontario Certificate of Qualification examination on or after April 1, 2009
Visit the Government of Canada website for additional information.
Incentives for Employers
For employers, the government has made tax credits available in order to help offset the cost of training and encourage employers to take on new apprentices. Some of the incentives available are:
- Graduated Apprenticeship Grant For Employers (GAGE): When an employer registers an apprentice in an eligible trade, they are automatically enrolled for this. Employers will receive payment each time their apprentice successfully completes a level of training
- Canada Ontario Job Grant (COJG): This provides direct financial support to employers who would like to purchase training for their apprentices
- Apprentice Employer Signing Bonus: This is a bonus of up to $2000 for employers who hire, register, and train an apprentice
- Employer Apprentice Completion Bonus: Employers are eligible for a cash grant once their apprentices have completed all required trainings (classroom and on the job) and have received their final certifications (this could be the Certification of Apprenticeship or Certificate of Qualification)
- Apprenticeship Training Tax Credit: This is applicable to employers who have apprentices that registered in an apprenticeship program on or before November 14, 2017. Employers will continue to be eligible to receive the Apprenticeship Training Tax Credit for these apprentices for up to 36 months
- Apprentice Job Creation Tax Credit (Red Seal Trades Only): This is a non-refundable tax credit that equals to 10% of the eligible salary/wages that is payable to apprentices with respect to employment
- Co-operative Education Tax Credit: Employers may be eligible for this if they hire a student enrolled in a co-operative education program at a recognized Ontario university or college. There is a maximum credit of $3000 per work placement
Please contact your local Employment Ontario apprenticeship office for more information about available supports and incentives.
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