British Columbia: Training Tax Credit for Employers
This refundable B.C. tax credit is for employers of apprentices registered with SkilledTradesBC. The basic credit is up to $4,000 for non-Red Seal apprentices in their first 24 months, and completion credits are up to $2,500 (level 3) or $3,000 (level 4). First Nations apprentices and apprentices with disabilities earn an extra enhanced credit. Eligible periods must end before January 1, 2028. You can apply anytime.
Before you spend any money
You claim this credit on your tax return after you pay the wages. There is no money up front. Claim the basic credit within 36 months after the end of the tax year in which the wages were paid, and the completion credit within 36 months after the end of the tax year in which the apprentice completed the level.
At a glance
Subject to program rules, available funding, and approval. Confirm current details with the official program administrator.
Is this for you?
- You run a business in B.C. that employs an apprentice registered with SkilledTradesBC, in a job related to their program.
- Your apprentice is in the first 24 months of a non-Red Seal program, or has completed level 3 or level 4 of a Red Seal or non-Red Seal program.
- You are subject to B.C. income tax, as a B.C. resident or as a corporation with a permanent establishment in B.C.
Probably not the right fit if
- You are a corporation exempt from tax under Section 27 of the Income Tax Act or controlled by such an entity.
- You are hiring an apprentice for a Red Seal program and seeking the Basic Credit (Basic Credit is only for non-Red Seal programs).
- The wages you want to claim are for a period on or after January 1, 2028.
How much you'd realistically get
The basic credit is 20% of the apprentice's eligible wages, to a maximum of $4,000. The completion credit is 15% of eligible wages, to a maximum of $2,500 at level 3 or $3,000 at level 4. If the apprentice is registered as an Indian under the Indian Act or qualifies for the federal disability tax credit, the enhanced credit adds 50% more, up to $2,000, $1,250 or $1,500.
What may be supported
- Hiring and training apprentices in eligible skilled trades (e.g., electricians, plumbers, carpenters, HVAC technicians).
- Paying wages to apprentices in their first 24 months of non-Red Seal programs.
- Paying wages to apprentices who have completed Level 3 or Level 4 training requirements.
What's excluded or restricted
- Profits, bonuses, employee benefits, stock options, or unpaid amounts as described in Section 78(4) of the federal Income Tax Act.
- Government and non-government assistance.
- Claims for employees who challenge a program to receive trade certification.
- Basic credit for Red Seal programs (only eligible for non-Red Seal).
- Corporations exempt from tax under Section 27 of the Income Tax Act or Part 1 of the federal Income Tax Act.
- Corporations directly or indirectly controlled by an entity exempt for the above reasons.
How applying works
Effort: moderateYou must track apprentice registration status, completion levels, and eligible wages, then complete specific CRA schedules (Schedule 428 for corporations or Form T1014-1 for individuals) with your annual tax return.
- 01Verify your apprentice is registered in an eligible SkilledTradesBC program and meets the specific criteria (non-Red Seal for Basic, completed levels for Completion).
- 02Track eligible salary and wages paid to the apprentice, excluding bonuses, benefits, and stock options.
- 03Determine if the apprentice qualifies for the Enhanced Credit (registered Indian or federal disability tax credit).
- 04Complete Schedule 428 (for corporations) or Form T1014-1 (for individuals) with your annual tax return.
- 05Submit the forms to the CRA and retain all supporting documentation (transcripts, certificates) for potential audit.
Who to ask: Phone: 250-387-3332 (Victoria) or 1-877-387-3332 (Toll free); Email: ITBTaxQuestions@gov.bc.ca; CRA Phone: 1-800-959-8281
Documents commonly required
- Your apprentice's SkilledTradesBC transcript.
- A copy of the apprentice's certificate, if they must have graduated to qualify.
- Payroll records of eligible salary and wages paid.
- For the enhanced credit: a copy of the Certificate of Indian Status card, or proof the employee qualifies for the federal disability tax credit.
- Schedule 428 (corporations) or form T1014-1 (individual employers).
What to know before you count on it
- This is a tax credit, not a grant. You claim it on your tax return. It first reduces your income tax payable, and any amount left is refunded.
- The Basic Credit is only for non-Red Seal programs in the first 24 months. Red Seal apprentices qualify only for the Completion Credits.
- The credit counts as government assistance, so it is taxable or reduces your expenses.
- You cannot claim the credit when an employee challenges a program to get certified.
- Keep your apprentice's SkilledTradesBC transcript and certificates. You may be asked for them when the CRA reviews your claim.
What are your odds?
There is no competition. If you and your apprentice meet the rules and you claim correctly, you can receive the credit. The CRA reviews and audits claims.
Frequently asked questions
Is this a grant I apply for?
No. It is a refundable tax credit claimed on your tax return. It first reduces your income tax payable, and any amount left is refunded to you.
Can I claim this for a Red Seal apprentice?
Only the Completion Credit (level 3 or 4). The Basic Credit is only for non-Red Seal programs in the first 24 months.
What if my apprentice qualifies for the Enhanced Credit?
If they are registered as an Indian under the Indian Act (Canada) or qualify for the federal disability tax credit, you can claim an extra 50% of the basic or completion credit, up to $2,000 (basic), $1,250 (level 3) or $1,500 (level 4). If you received the federal Apprenticeship Job Creation Tax Credit, the enhanced credit is 5.5% of eligible wages, up to $1,000.
When does this program end?
Eligible periods for both Basic and Completion credits must end before January 1, 2028. Claims must be made within 36 months after the end of the relevant tax year.
Is the credit taxable?
Yes. B.C. treats it as government assistance, so you include it as taxable income or as a reduction of expenses.
More funding by what it pays for
What you can combine it with
You can claim more than one B.C. credit in a year for the same apprentice if they meet each requirement. For Red Seal apprentices in their first 24 months, B.C. directs employers to the federal Apprenticeship Job Creation Tax Credit instead of the B.C. basic credit. If you received that federal credit, the enhanced B.C. credit is 5.5% of eligible wages, up to $1,000. Government and non-government assistance is removed from eligible wages.
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Page last updated ; status and deadline checked . Source: official program page.