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Grants and Tax Credits

As a sponsoring employer, you can take advantage of certain grants and tax credits, including:

Apprenticeship Job Creation Tax Credit

Employers of apprentices registered in Red Seal trades may now be eligible to claim the Apprenticeship Job Creation Tax Credit for wages.

For more information, please visit the Canada Revenue Agency.

BC Training Tax Credits

The BC provincial training tax credits provide refundable income tax credits for employers and employees who are engaged in apprenticeship programs administered through the Industry Training Authority (ITA).

There are three main elements to the training tax credits:

  1. Basic credits for non-Red Seal training programs;
  2. Completion credits for both Red Seal and non-Red Seal training programs; and
  3. Enhanced credits for First Nations individuals and persons with disabilities.

For more information, please visit the BC Government website.

Tradesperson's Tools Deduction

Certified trades-people and apprentices may be eligible to claim the new tradesperson's tool deduction for tools and equipment purchased for work purposes after May 1, 2006.

For more information, please visit the Canada Revenue Agency.

Apprenticeship Incentive Grant (AIG)

Effective January 1, 2007, apprentices completing their first or second level of a Red Seal apprenticeship program are eligible for a $1,000 Apprenticeship Incentive Grant (AIG). Please note that only those apprentices demonstrating progression on or after January 1, 2007 will be considered eligible.

Application Procedure

Effective, January 1, 2010 apprentices will receive a Confirmation of Progression Letter from the Industry Training Authority (ITA) when they have met the progression eligibility requirement for the Level 1 and 2 Apprentice Incentive Grant (AIG). This simplifies the documents apprentices must provide to Service Canada to support their application.

For more information, please review the list of eligibility requirements for each program below:

Eligibility Requirements

Click here for information and forms.

General enquiries may also be directed to Service Canada at:
1-866-742-3644 or
1-866-909-9757 (for the hearing impaired)

Apprenticeship Completion Grant

The Apprenticeship Completion Grant (ACG) is a $2,000 taxable cash grant designed to encourage apprentices registered in a designated Red Seal trade to complete their apprenticeship program and receive their certification. Apprentices will be able to apply for the ACG in July 2009 with eligibility made retroactive to January 1, 2009. For more information visit Service Canada.

Aboriginal Initiatives

Employers may be eligible for tax credits for sponsoring apprentices, visit the ITA website for more information.