Apprenticeship Grants and Tax Credits for Employers (2026)

Grant, wage subsidy or tax credit?

Employers who hire apprentices in Canada can get three kinds of help. Each one works in a different way.

• Tax credit. You pay the wages first. Then you claim the credit on your tax return. It is not paid up front, and it is not a grant.
• Grant. The government pays you directly. You do not claim it on your tax return. The Ontario program below pays after each training milestone.
• Wage subsidy. The government pays back part of the wages you paid. In Newfoundland and Labrador, you need approval before the apprentice starts.

The federal tax credit for Red Seal trades

The Apprenticeship Job Creation Tax Credit is a federal non-refundable tax credit. It is for employers of apprentices in Red Seal trades, such as electrician, plumber or carpenter. The credit is 10% of eligible salaries and wages, up to $2,000 per apprentice each year.

The main rules:

• The apprentice must be in the first two years of an apprenticeship contract. The contract must be registered with a federal, provincial or territorial government.
• The credit is non-refundable. It can lower your tax to zero, but it does not pay out cash.
• Unused credit can be carried back 3 years or forward 20 years.
• If related employers employ the same apprentice, only one of them gets the $2,000 limit.

How to claim. Sole proprietors and partners complete Form T2038(IND) and claim the credit on line 41200 of their income tax return. Corporations complete Schedule 31 (T2SCH31) with their T2 return.

Province by province

Each province sets its own rules.

Ontario: a milestone grant

Ontario's Achievement Incentive Program offers up to $17,000 to eligible employers and group sponsors when apprentices meet training and certification milestones. The apprentice must be registered with Skilled Trades Ontario.

• The basic payment is $1,000 for each level of in-class training completed.
• Extra payments apply for apprentices under 25 or who self-identify as part of an under-represented group.
• Trades with fewer levels of in-class training have fewer milestone payments.

You do not apply in advance. The Ministry of Labour, Immigration, Training and Skills Development notifies you when a milestone is reached. The notice includes a secure link to a one-time online application. Each payment needs its own application. If you do not get a link, contact Employment Ontario. The money comes in steps over the apprenticeship, not up front.

British Columbia: a refundable tax credit

British Columbia's Training Tax Credit for Employers is a refundable provincial tax credit. It is for employers of apprentices registered in eligible SkilledTradesBC programs.

• Basic credit: 20% of eligible salary and wages, up to $4,000. It is only for non-Red Seal programs, in the apprentice's first 24 months.
• Completion credit: 15% of eligible salary and wages, up to $2,500 at level 3 or up to $3,000 at level 4. Both Red Seal and non-Red Seal apprentices can get the completion credit.
• Enhanced credit: an extra amount for First Nations apprentices and apprentices who qualify for the federal disability tax credit.

You claim it with your tax return: Schedule 428 for corporations or Form T1014-1 for individuals. The credit first reduces your income tax. Any amount left is refunded. Eligible periods must end before January 1, 2028. Claims must be made within 36 months after the end of the tax year. The credit counts as government assistance, so it is either taxable income or it lowers the expenses you can deduct.

Quebec: a refundable tax credit

Revenu Québec's Tax Credit for an On-the-Job Training Period is a refundable Quebec tax credit. It is for businesses that host an apprentice in the Workplace Apprenticeship Program or a full-time student trainee. It covers part of the trainee's wages and the wages of the supervisor who trains them.

• Corporations get 24%. The rate is 32% if the trainee is a person with a disability, an immigrant or an Indigenous person, or the training is in a resource region.
• Unincorporated businesses get half these rates.
• Only part of the wages counts: trainee wages up to $21 an hour and supervisor wages up to $35 an hour. A weekly limit of $700 per trainee applies ($875 or $1,225 for some trainees).

You need a signed attestation within six months after the training period ends. For an apprentice, the attestation comes from Quebec's Ministère de l'Emploi et de la Solidarité sociale or the Kativik Regional Government. File form CO-1029.8.33.6 (corporations) or TP-1029.8.33.6-V (individuals) with your income tax return. Corporations must claim no later than 12 months after the return's filing deadline. If the credit is more than the Quebec tax you owe, the difference is paid to you.

Manitoba: refundable tax credits

Manitoba's Paid Work Experience Tax Credits are fully refundable. For apprentices, the main rates are:

• High school apprentices: 25% of wages, up to $5,000 per apprentice per year.
• Apprentices at all levels: 15% of wages, up to $5,000 per year. The rate is 20% for level 1 and 2 apprentices outside Winnipeg.
• Newly certified journeypersons, in their first two years: 15%, up to $5,000 per year.
• Up to $35,000 in total for one apprentice hired through five levels and two years as a journeyperson.

No pre-approval is needed. You claim the credit on your annual tax return. The work must be done in Manitoba. The credit is worked out on wages net of other government funding, so other help for the same wages lowers it.

Newfoundland and Labrador: a wage subsidy

Newfoundland and Labrador's Apprenticeship Wage Subsidy (AWS) is a wage subsidy, not a tax credit. It pays 75% of the apprentice's hourly wage, up to $14 an hour.

• Up to 700 hours for a first-year apprentice and up to 1,560 hours for a second-, third- or fourth-year apprentice.
• Each apprentice can be funded for two of their four levels.
• Your business must be registered in the province, in good standing, with an office or operation there. You need a signed Memorandum of Understanding confirming a qualified journeyperson on site.

Apply online through LaMPSS, the province's online system for labour market programs, at least 30 days before the apprentice starts. Do not fill the job before approval. The apprentice cannot replace an existing employee. You pay the wages first. Then you send Activity and Financial reports with payroll documents to be paid back.

Hiring a student instead

The Student Work Placement Program is for post-secondary students, not registered apprentices. It offers up to $5,000 for each placement. You apply year-round through one of 18 partner organizations, not to the government directly. The Student Work Placement Program subsidy is usually taxable income.

The Canada Summer Jobs Program is closed. The last call ran from November 4 to December 11, 2025. The next call has not been announced yet.

Which one fits you

• Red Seal apprentice in the first two years, and you owe income tax: start with the federal credit.
• Ontario employer with an apprentice registered with Skilled Trades Ontario: watch for the Ministry's milestone notices.
• B.C. employer: the basic credit for a non-Red Seal apprentice in the first 24 months, or the completion credit at level 3 or 4 for Red Seal and non-Red Seal apprentices.
• Quebec business hosting a Workplace Apprenticeship Program apprentice: the Quebec credit. Get the attestation on time.
• Manitoba employer: the credits cover apprentices at every level and newly certified journeypersons.
• Newfoundland and Labrador employer with an apprentice who has not started yet: the wage subsidy, if the start date is at least 30 days away.
• Hiring a college or university student: the Student Work Placement Program.

Using more than one program

Some programs can be used together, but each one has its own rules.

• The Ontario program page lists the federal credit as extra support for employers.
• In B.C., if you received the federal credit, the enhanced credit for a First Nations apprentice or an apprentice with a disability is 5.5% of eligible wages, up to $1,000.
• Revenu Québec's form says the federal apprenticeship credit is not treated as assistance for this credit.
• In Manitoba, other government funding for the same wages reduces the credit.
• In Newfoundland and Labrador, you must report other funding for the same hire. The province may reduce its share.

First steps

1. 1.Make sure your apprentice is registered, for example with Skilled Trades Ontario or SkilledTradesBC.
2. 2.Check if the trade is a Red Seal trade. This decides the federal credit and the B.C. basic credit.
3. 3.In Newfoundland and Labrador, apply at least 30 days before the start date.
4. 4.Keep payroll records, hours, transcripts and certificates.
5. 5.Ask your accountant to claim the tax credits on your tax return.

BBN Labs can help you see which of these programs fit your business and explain the rules and deadlines. You apply or claim yourself.