By Sally Harvey CLT, CLP
Education and Labour Development Department

Regular readers of this column know that I believe apprenticeship is a gift. So, I was very excited recently when I heard the good news that the government has enhanced this gift! Not only is there the Apprenticeship Incentive Grant (AIG) for employees and the Apprenticeship Job Creation Tax Credit (AJCTC) for employers, but now we also have the added bonus with the new Apprenticeship Completion Grant (ACG). The ACG is meant to inspire apprentices to complete the apprenticeship program and receive a journeyperson certification in a designated Red Seal trade. Here is a summary of the apprenticeship incentive opportunities:
 

Two incentives for the apprentice

The new ACG is a $2,000 taxable cash grant designed to encourage apprentices registered in a designated Red Seal trade, such as the Horticulture Technician, to complete the apprenticeship program and receive a journeyperson certification. Remember, we were just identified as a Red Seal trade in October 2008. This is incredible news!
To be eligible for the ACG you must be:

• a Canadian citizen, permanent resident, or protected person as defined in the Immigration and Refugee Act
• out of high school
• you have completed an apprenticeship program in a designated Red Seal trade
• a certified journeyperson in a designated Red Seal trade effective Jan. 1, 2009, or after.

You are not eligible for the ACG, even if you obtained your trade certification in one of the designated Red Seal trades, without completing an apprenticeship program in that trade.

To apply, go to the Service Canada website at www.servicecanada.gc.ca. From there, click on the A to Z Services on the left side of the page.  It will take to the index, where you will click on the letter ’A’. Click on  Apprenticeship Grants.

Provide the required proof of completion and/or certification within an eligible Red Seal apprenticeship program by mailing it to the Service Canada Processing Centre. The address is provided at the end of your application. You must submit your completed application by June 30 of the calendar year, after the year that you received your Red Seal certification. For example, if you completed your apprenticeship program and became a certified journeyperson in a designated Red Seal trade in February of 2009, you have until June 30, 2010, to submit your application.

The grant is taxable and has a lifetime maximum of $2,000 per eligible journeyperson. For more information, or for assistance to complete this form, go to www.servicecanada.gc.ca.
 

New grant available

For those who wish to pursue a career in the skilled trades, but face financial barriers, the Government of Canada has created the AIG. This is a taxable cash grant of $1,000 per year for registered apprentices, once they successfully complete the first or second year/level (or equivalent) of an apprenticeship program in one of the designated Red Seal trades. The AIG is designed to help apprentices cover some expenses related to tuition, travel and tools.
 

Incentive for the employer

The AJCTC is a non-refundable tax credit equal to 10 per cent of the salaries and wages payable to eligible apprentices. The maximum credit is $2,000 per year for each eligible apprentice. Any business that hires an eligible apprentice may qualify for the program. An eligible apprentice is someone working in a prescribed trade (Horticulture Technician does qualify as a prescribed trade) in the first two years of their apprenticeship contract. This contract must be registered with a federal, provincial or territorial government under an apprenticeship program designed to certify or license individuals in the trade.

Employers may claim the credit on their income tax returns, using either Form T2038(IND), Investment Tax Credit (Individuals) or Form T2SCH31, Investment Tax Credit - Corporations. Order forms online at www.cra.gc.ca/forms. You can also order forms and publications by calling 1-800-959-2221.

Additional information will be available in the General Income Tax and Benefit Guide, Form T2038 (IND), Investment Tax Credit (Individuals), Guide T4012, T2 Corporation - Income Tax Guide and Form T2SCH31, Investment Tax Credit - Corporations. These forms and publications are available on the CRA website at www.cra.gc.ca/forms. You can also call business enquiries at 1-800-959-5525.

To register as an apprentice go to:www.horttrades.com/apprenticeship.
 

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Sally Harvey may be reached by email at sharvey@landscapeontario.com