Skilled Trades Grants, Tax Credits And Deductions For Apprentices


Grants, tax credits and deductions for skilled tradespeople

If you’ve done the research and identified the required training or certification you need for the particular skilled trade you’d like to pursue, you can get financial help from the Canadian government or other sources to help minimize the burden of paying for it.

Apprentices may receive up to $4,000 to pay off tuition, travel expenses, tools or other expenses related to their training.

Apprenticeship Incentive Grant

The Apprenticeship Incentive Grant is a financial resource for Canadian apprentices offering a taxable cash grant of $1,000 per year or per level, with a maximum amount of $2,000. To take advantage of this grant, you must be a registered apprentice who has completed your first or second year or level of apprenticeship in one of the Red Seal trades.

To be eligible for this grant, you must be a Canadian citizen who is a registered apprenticeship. You can read all the detailed eligibility requirements here.

When you apply for this grant, you are required to submit related apprenticeship proof and documentation in accordance to your province or territory. This includes documents like your Apprenticeship Identification Card or your Certificate of Qualification.

If you meet all of your province or territory’s eligibility requirements and can provide proof of registration in a Red Seal trade program and proof of progression in the apprenticeship program, you can apply for this grant before June 30 for the current year. You can confirm that you meet all the requirements by using the application checklist.

Apprenticeship Completion Grant

The Apprenticeship Completion Grant offers apprentices up to $2,000 and is a taxable cash grant. Only apprentices who have completed their training and have successfully become certified tradespersons or journeypersons in a Red Seal trade may qualify for this grant.

As an eligible candidate for the ACG grant, you must of course be a Canadian citizen and you must be able to provide supporting documentation of your completed apprenticeship training and certification. Like the Apprenticeship Incentive Grant, you must apply before the June 30 deadline.

Both the AIG and the ACG applications can be completed online, and you can contact Service Canada if you need help filling out any fields. Once everything has been submitted, you can expect to have your grant payment processed after about 28 days.

Tradesperson’s tools deduction

As a tradesperson, the Canada Revenue Agency allows you to deduct up to $500 of the cost of new tools needed for work. To be eligible for this deduction, your tools must cost more than $1,000, you must already have completed your training and you must be employed.

Apprenticeship Job Creation Tax Credit

Employers of apprentices can take advantage of this non-refundable tax credit offered by the Canada Revenue Agency, which is equal to 10% of apprentice salaries or wages with a maximum of $2,000 each year for every employed and eligible apprentice. To be eligible for this tax credit, you must have worked in your trade for the first 2 years of your apprenticeship contract. If they don’t already know about it, tell your boss about this tax credit to help save the company a bit of money.

Other grants, tax credits and deductions

Each province or territory may provide apprentices or tradespersons with further options for financial help. Besides the nationwide options described above, there doesn’t seem to be anything specifically available for tradespersons located in New Brunswick, the Northwest Territories, Nunavut, Prince Edward Island or the Yukon Territory.

If you’re an Ontario resident pursuing a non-Red Seal trade, you may wish to apply for the Apprenticeship Completion Bonus in Non-Red Seal Trades, which is a taxable cash grant of $2,000.

To find out more about province- or territory-specific financial options for skilled tradespersons, you can contact your provincial or territorial apprenticeship authority.

Visit TalentEgg’s Skilled Trades Career Guide for eggs-clusive student and entry level Skilled Trades jobs plus articles and videos to help you hatch your career.

 

Photo credit: Must-be-Red Toolbox by Rosa Say on Flickr