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.

Employer Incentives

Provincial

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

Federal

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

Apprentice Incentives

Provincial

1. Ontario Loans for Tools Program

Apprentices in the construction trades are eligible to receive $400.00 towards the purchase of tools. This interest free loan is due and payable one year after completing the apprenticeship program.

For more information visit:  http://www.ontario.ca/page/start-apprenticeship#section-8

2. Apprenticeship Income Support Grant

Grants of up to $1500.00 per term will be available to help apprentices with the cost of school if they are not eligible for employment insurance.

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.

Federal

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 $1,000.00 per year or level, up to a maximum amount of $2,000.00 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 $2,000.00 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 $500.00 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 $1,000.00;
  • 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 $4000.00 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