Grants & Incentives
The Governments of Canada and Ontario have responded to the need to recruit and train new apprentices by creating several great financial incentives to encourage employers to hire apprentices and to encourage apprentices to complete their apprenticeships.
1. The Graduated Apprenticeship Grant for Employers (GAGE)
The Graduated Apprenticeship Grant for Employers (GAGE) provides payments to employers who hire (sponsor) and train apprentices in 130 eligible trades. Eligible employers will receive an automatic payment as their apprentice completes each level of training and when they achieve their Certificate of Apprenticeship or Certificate of Qualification. Eligible employers can receive up to $19, 200 per apprentice over the period of the apprenticeship. This includes a $500 bonus for eligible employers for each completion milestone an apprentice finishes if the apprentice is from an underrepresented group.
For additional details, please see: www.tcu.gov.on.ca/pepg/graduated-apprenticeship-grant.html
2. Achievement Incentive
The program offers up to $4,000 to eligible employers when apprentices meet training and certification milestones, including:
- $1,000 milestone payments for each level of in-class training completed by the apprentice, up to a maximum of 3 levels;
- an additional $1,000 payment once the apprentice achieves the highest level of trade certification in their respective trade, such as Certificate of Apprenticeship or Certification of Qualification.
Milestone payments are retroactive to April 1, 2020.
For additional details, please see: http://www.tcu.gov.on.ca/eng/eopg/programs
1. Apprenticeship Job Creation Tax Credit
The Apprenticeship Job Creation Tax Credit (AJCTC) is a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices in respect of employment after May 1, 2006. The maximum credit an employer can claim is $2,000 per year for each eligible apprentice. If your business hires an eligible apprentice, you qualify to claim the credit.
For additional details please visit: http://www.esdc.gc.ca/en/support_apprentices/tax_deductions_employers.page
1. Ontario Tools Grant
Apprentices in the construction trade are eligible to receive a grant of $600 towards the purchase of tools.
To be eligible for the new grant, apprentices must have:
- completed level 1 training on or after April 1, 2020;
- an active registered training agreement; and
- been registered as an apprentice for as least 12 months.
For additional details, and to apply visit https://www.eoss.tcu.gov.on.ca/AOL/grants/tools_grant/start
2. Grant for Apprenticeship Learning (GAL)
The Grant for Apprenticeship Learning provides up to $3600.00 of taxable financial supports for non-Employment Insurance eligible apprentices who completed a level of full time in-class training at an approved training delivery agency after April 1, 2020
Apprentices will receive an application with instructions via email at the end of training.
Certain requirements must be met:
- Apprentice must successfully complete in-school training
- Notification of non-EI eligibility received from Service Canada must be provided
3. Certificate of Qualification (C of Q) Examination Preparatory Assistance
The Ministry of Advanced Education and Skills Development (MAESD) has instituted an initiative which supports apprentices and Certificate of Qualification challenger success on the C of Q exam. The initiative involves the addition of 5 days of dedicated exam preparation content to the final level of apprenticeship classroom training. The C of Q exam is delivered on the last day of the additional week.
4. Back-to-Back Schooling
MAESD will be giving apprentices the choice to complete more of their in-school training up front if work placements are temporarily unavailable.
1. NEW: Apprenticeship Incentive Grant for Women (AIG-W)
In Budget 2018, the Government of Canada announced a new Apprenticeship Incentive Grant for Women to further support women in entering, progressing, and completing their training in Red Seal trades where women are underrepresented. The Apprenticeship Incentive Grant for Women (AIG-W) is a taxable cash grant of $3,000 per year/level (or equivalent) up to a maximum amount of $6,000 per person.
For more information and to apply visit: www.esdc.gc.ca/en/support_apprentices/index.page
2. Apprenticeship Incentive Grant (AIG)
The AIG is a taxable cash grant of $1,000 per year or level, up to a maximum amount of $2,000 per apprentice. It is available to apprentices once they have completed their first and/or second year or level of an apprenticeship program in a designated Red Seal Trade.
Applications may be obtained at: www.esdc.gc.ca/en/support_apprentices/index.page
3. Apprenticeship Completion Grant (ACG)
The ACG is a taxable cash grant of $2,000 for registered apprentices who complete their apprenticeship training and obtain their journeyperson certification in a designated Red Seal trade.
Applications may be obtained at: https://www.canada.ca/en/employment-social-development/services/apprentices/grants.html
4. Tradesperson’s Tools Deduction
The Tradesperson’s Tools Deduction provides employed tradespersons with an annual deduction of up to $500 to help cover the cost of new tools necessary for their trade. The deduction applies to the total cost of eligible tools if:
- The total cost exceeds $1,000;
- The tools were purchased after May 1, 2006;
- The purchase was made by an employed tradesperson
For more information visit: http://www.esdc.gc.ca/en/support_apprentices/tax_deductions_apprentices.page
5. Canada Apprentice Loan (CAL) Program
CAL is loan funding offered by the Government of Canada to apprentices registered in a Red Seal trade apprenticeship program who are enrolled in any of the mandatory levels of in-school training. CAL is meant to help apprentices pay for tuition, tools, living expenses, cover forgone wages or support their families. Apprentices may be eligible to receive loans of up to $4000 for each in-school training session they attend and may have up to 6 years of interest free status in order to repay the loan(s).
For more information and to apply, please visit: www.esdc.gc.ca/en/support_apprentices/loans.page