New tax credits for employers hiring apprentices
Ontario employers will soon be getting tax credits for hiring apprentices as part of the Dalton McGuinty government’s pledge to increase the number of apprentices in the province.
First promised in the 2004 budget, the proposed Apprenticeship Training Tax Credit would refund 25 per cent of salaries and wages paid to an eligible apprentice. The tax credit would increase to 30 per cent for businesses with payrolls of less than $400,000.
Employers would qualify for up to $5,000 per year per eligible apprentice. The maximum credit would be $15,000 over the first 36 months of an apprenticeship.
Businesses would be eligible for the refundable tax credit on wages paid after May 18, 2004 to apprentices during the first 36 months of the apprenticeship.
"An Apprenticeship Training Tax Credit would be a cornerstone of our plan to increase both the quality and quantity of skilled labour, including trades people, in this province," said Greg Sorbara, Minister of Finance.
"Our investment in apprenticeship will address the expected wave of retirements in skilled trades, and help build a strong and prosperous economy."
Aside from the tax credits, the government is committing up to $6 million in 2004-05 to create new co-op apprenticeship programs that will enable young people to train as apprentices in a specific trade while obtaining an associated college diploma. The Liberal government is also creating 1,500 scholarships of $1,000 each to high school students who had quit school, then returned to complete high school and enter apprenticeships, and a $2,000 bonus for employers to encourage them to hire these young people into skilled trades.
According to the Ontario Chamber of Commerce's 2003 Skilled Trades Survey, within the next 15 years, 52 per cent of skilled trades people are expected to retire. As well, 41 per cent of Ontario's skilled trades anticipate that they will face skills shortages in their industry within five years.
First promised in the 2004 budget, the proposed Apprenticeship Training Tax Credit would refund 25 per cent of salaries and wages paid to an eligible apprentice. The tax credit would increase to 30 per cent for businesses with payrolls of less than $400,000.
Employers would qualify for up to $5,000 per year per eligible apprentice. The maximum credit would be $15,000 over the first 36 months of an apprenticeship.
Businesses would be eligible for the refundable tax credit on wages paid after May 18, 2004 to apprentices during the first 36 months of the apprenticeship.
"An Apprenticeship Training Tax Credit would be a cornerstone of our plan to increase both the quality and quantity of skilled labour, including trades people, in this province," said Greg Sorbara, Minister of Finance.
"Our investment in apprenticeship will address the expected wave of retirements in skilled trades, and help build a strong and prosperous economy."
Aside from the tax credits, the government is committing up to $6 million in 2004-05 to create new co-op apprenticeship programs that will enable young people to train as apprentices in a specific trade while obtaining an associated college diploma. The Liberal government is also creating 1,500 scholarships of $1,000 each to high school students who had quit school, then returned to complete high school and enter apprenticeships, and a $2,000 bonus for employers to encourage them to hire these young people into skilled trades.
According to the Ontario Chamber of Commerce's 2003 Skilled Trades Survey, within the next 15 years, 52 per cent of skilled trades people are expected to retire. As well, 41 per cent of Ontario's skilled trades anticipate that they will face skills shortages in their industry within five years.
