Ontario employers looking to grow their skilled workforce may be eligible for significant financial support through provincial and federal apprenticeship programs. These incentives are designed to help businesses offset training costs, support apprentice success, and strengthen Ontario’s skilled trades pipeline.
Achievement Incentive Program
The Ontario government’s Achievement Incentive Program (AIP) provides grants to employers who sponsor and train apprentices. The program rewards employers as apprentices reach key training and certification milestones and can provide up to $17,000 per eligible apprentice.
Employers can receive:
- $1,000 when a newly registered apprentice is under the age of 25. An additional $1,000 if the apprentice self-identifies as belonging to an under-represented group (for a maximum of $2,000 if applicable).
- $1,000 for each completed level of in-class training (up to four levels where applicable). An additional $1,000 for each level completed by an apprentice who is under 25 and/or from an under-represented group (for a maximum of $12,000, where applicable).
- $1,000 completion payment. An additional $1,000 for apprentices under 25 and/or from under-represented groups (for a maximum of $3,000).
Eligible employers and group sponsors are automatically notified by the Ministry of Labour, Immigration, Training and Skills Development when their registered apprentices complete training milestones or achieve certification. Organizations then receive a secure online application link to apply for incentive payments.
In order for an employer to qualify for AIP, the following criteria must be met:
- Be a corporation or unincorporated businesses that is subject to Ontario income taxes;
- Have a Federal/Ontario Business Number (sole proprietors would use business number linked to HST/payroll account);
- Have an address or permanent work site in Ontario;
- Be an approved ministry sponsor for apprenticeship;
- Have registered a training agreement with an apprentice in a prescribed trade regulated under Building Opportunities in the Skilled Trades Act, 2021(BOSTA).
All payments received through the AIP are taxable and are to be reported on your personal or corporate tax return.
Additional Federal Supports Available
In addition to Ontario’s Achievement Incentive Program, employers may qualify for federal supports, including the Apprenticeship Job Creation Tax Credit (AJCTC). This credit provides eligible employers with 10% of an apprentice’s salary and wages, up to $2,000 per year per eligible apprentice, during the first two years of an apprenticeship.
This credit is applied for on your personal or corporate tax return. In order to claim the credit you will need to provide your accountant with:
- A copy of the completed Registered Training Agreement for each apprentice; and
- The wages paid to each apprentice during the registered period.
Input tax credits, such as the AJCTC are taxable in the year in which they are received, therefore they will be included in taxable income the year following the initial application.
Federal wage subsidies and other hiring assistance programs may also be available to support workforce development.
Consider an OYAP Student
Another excellent way for employers to develop future talent is through the Ontario Youth Apprenticeship Program (OYAP). OYAP allows eligible high school students to participate in cooperative education placements in skilled trades while earning secondary school credits and gaining valuable workplace experience. OYAP placements are typically unpaid, making them a low-risk opportunity for employers to evaluate potential future apprentices and employees. Importantly, for unpaid placements, the Ministry of Education provides WSIB coverage, meaning employers do not pay WSIB premiums for participating students. A Work Education Agreement must be completed before the placement begins.
Hosting an OYAP student helps employers build relationships with future skilled trades workers, introduce young people to their industry, and create a pipeline of talent that can transition into registered apprenticeships after graduation. Employers are under no obligation to hire students after their placement but often benefit from having an already trained and workplace-ready candidate if future opportunities arise.
The OYAP program integrates well with the Ontario Achievement Incentive Program mentioned above and can be a great starting point for any employer looking to hire an apprentice.
Ontario Co-operative Education Tax Credit
Employers that provide paid work placements to eligible post-secondary students may also qualify for the Ontario Co-operative Education Tax Credit (OCETC). This refundable tax credit is available to employers that offer qualifying work placements in Ontario through an approved post-secondary co-operative education program, including programs that may be connected to apprenticeship pathways. The credit is worth 25% to 30% of eligible expenditures, with a maximum credit of $3,000 per student placement. Eligible expenses include salaries, wages, taxable benefits, and certain employment agency fees paid for the student placement. To qualify, the placement must be approved by the educational institution, include productive work, be supervised and evaluated by the employer, monitored by the institution, and the student must be paid for their work.
This credit is available to both corporations and sole proprietors and is applied for on your annual tax return. In order to claim the credit, you will need to provide your accountant with:
- A letter from the post-secondary institution which certifies the student is enrolled in a co-op program at that school; and
- The wages paid to that student during their co-op term.
Tax credits, such as the OCETC are taxable in the year in which they are received, therefore they will be included in taxable income the year following the initial application.
Why Consider Hiring an Apprentice?
Apprenticeships provide employers with an opportunity to:
- Develop skilled workers to meet current and future labour demands.
- Transfer knowledge from experienced staff to the next generation.
- Build a diverse and inclusive workforce.
- Access financial incentives that reduce training costs.
- Connect early with skilled trades students through OYAP placements and create a future hiring pipeline.
For more information about registering as a sponsor for apprentices under AIP or the OYAP program reach out to Employment Ontario or a OYAP representative. For more information about tax credits eligibility, reach out to your Client Manager.