Co-op Education and Apprenticeship Tax Credits

Co-op Education and Apprenticeship Tax Credits is a family of programs that provide incentives to employers.

All components of this program are fully refundable tax credits and are available to those who hire:

• co-op students for work placements as part of a recognized college or university program
• recent graduates of co-op education programs
• apprentices (including high school apprentices) and certified journeypersons

Co-op Student Hiring Incentive – pays 10% to a maximum of $1000 for wages paid for the placement of post-secondary co-op program students.

Co-op Graduate Hiring Incentive – pays 5% to a maximum of $2,500 for wages paid to a co-op graduate in each of the first two years of employment.

Early-Level Apprentice Hiring Incentive – (beginning in 2011) pays 10% of net wages to a maximum credit of $2,000 per year per employee. The credit is designed to assist employers who are not eligible for the federal Apprenticeship Job Creation Tax Credit and who hire high school students who are taking apprenticeship training as part of their schooling or post-secondary Level 1 and 2 apprentices.

Advanced-Level Apprentice Hiring Incentive– pays 5% to a maximum of $2,500 for wages paid to an apprentice who completes Levels 3, 4 or 5 of their trade with the employer.

Journeyperson Hiring Incentive – pays 5% to a maximum of $2,500 for wages paid to a newly certified journeyperson in each of the first two years of employment.

These tax credits must be pre-approved by Manitoba Finance prior to being claimed through the income tax system.

Who Can Apply?
Most employers are eligible:

• Private companies
• Co-operatives
• Crown Corporations
• Municipally-owned businesses
• Not-for-profi t organizations
• Unincorporated employers

The following conditions apply to all components:

• Work must be performed primarily in Manitoba
• Employer must reside in or have a permanent establishment in Manitoba
• There is no limit on the number of hires
• Employer wage costs do not include other government assistance
• All components are refundable tax credits

Need Additional Information?

If you are a co-op education provider, contact:

The Council on Post-Secondary Education
608-330 Portage Avenue
Winnipeg, MB R3C 0C4
Phone: 204-945-1833
Fax: 204-945-1841
E-mail: info@copse.mb.ca
Website: www.copse.mb.ca/tax_credit/index.html

For information on the Apprenticeship components, contact:

Apprenticeship Manitoba
1010-401 York Avenue
Winnipeg, MB R3C 0P8
Phone: 204-945-3337
Fax: 204-948-2539
Toll-Free: 1-877-978-7233 (1-877-97-TRADE)
Email: apprenticeship@gov.mb.ca
Website: www.gov.mb.ca/tce/apprent/finance/index.html#grants

For general information please contact:

Manitoba Tax Assistance Office
809-386 Broadway
Winnipeg, MB R3C 3R6
Fax: 204-948-2263
Phone: 204-948-2115 or 1-800-782-0771 (in Manitoba)
E-mail: tao@gov.mb.ca
Website: www.gov.mb.ca/finance/tao/index.html