Tax credit for an on-the-job training period
Highlights
This program is designed for businesses like yours, offering a valuable opportunity to support your growth and development. By participating, you can receive a refundable tax credit for expenses related to on-the-job training periods for student trainees or apprentices. This means you can offset some of the costs associated with training new talent, making it a financially smart move.
Key Benefits:
- Refundable Tax Credit: Get a portion of your training expenses back.
- Support for Trainees: Helps cover costs for students in secondary, college, or university programs, as well as apprentices in recognized programs.
- Encourages Growth: Invest in your future workforce without bearing the full financial burden.
Why Apply?
- Financial Relief: Reduce your training costs significantly.
- Easy Qualification: If your business is based in Québec and you meet the simple criteria, you are likely eligible.
- Long-Term Gains: Develop skilled employees who can contribute to your business's success.
Applying for this program is straightforward and can provide substantial financial benefits, making it easier for you to invest in the future of your business.
Financing Details
Type of Financing: Tax Credit
Repayment Terms and Interest Rates:
- This is a refundable tax credit, meaning you do not need to repay it.
- There are no interest rates associated with this tax credit.
Eligible Expenses:
- Qualified expenditures related to a student trainee enrolled full-time in a recognized educational institution.
- Expenditures must be for a training period totaling at least 140 hours.
- Applies to secondary, college, or university education programs, or prescribed programs.
Use of Funds:
- Funds can be used to cover costs associated with the trainee's on-the-job training period.
- This includes wages paid to the trainee and other related expenses.
Restrictions:
- Funds cannot be used for expenses unrelated to the trainee's on-the-job training period.
- The tax credit cannot be claimed by a trust if one of the trust's beneficiaries is a tax-exempt corporation.
Fees:
- There are no fees associated with applying for or receiving this tax credit.
Qualifications
- Must carry on a business in Québec.
- Must have an establishment in Québec.
- Must incur qualified expenditures in respect of a student trainee enrolled full-time in a secondary, college, or university (undergraduate, master's, or doctoral) education program, or a prescribed program, offered by a recognized educational institution.
- Training periods must total at least 140 hours.
- Must obtain, within six months after the end of the training period, form CO-1029.8.33.10, Attestation de participation à un stage de formation admissible, duly signed by a representative of the recognized educational institution.
- Must incur qualified expenditures respecting a trainee enrolled in the Workplace Apprenticeship Program (WAP) administered by the Ministère de l'Emploi et de la Solidarité sociale or by the Kativik Regional Government.
Must obtain, within six months following the end of the training period, an attestation from the Ministère de l'Emploi et de la Solidarité sociale or the Kativik Regional Government.
Disqualifications:
- Trusts where one of the trust's beneficiaries is a tax-exempt corporation.
- Businesses exempt from income tax.
Description
This program offers your business a refundable tax credit for expenses related to on-the-job training. If you have trainees working with you, this can help offset the costs.
You can receive a tax credit for:
- Trainees enrolled full-time in secondary, college, or university programs.
- Trainees in the Workplace Apprenticeship Program (WAP).
What you can use the credit for:
- Salaries paid to trainees.
- Costs directly related to their training period.
Key benefits:
- Refundable credit: You get money back even if you owe no taxes.
- Support for training: Helps cover the costs of training new talent.
- Encourages growth: Invest in your business by developing skilled workers.
This program is a great way to reduce expenses while investing in the future of your business.
Program Steps
Gather Required Documentation: Collect the necessary documents to support your application. These include:
- Financial statements
- Business plan
- Details of qualified expenditures
- Form CO-1029.8.33.10, Attestation de participation à un stage de formation admissible, signed by a representative of the recognized educational institution (if applicable)
- Attestation from the Ministère de l'Emploi et de la Solidarité sociale or the Kativik Regional Government (if applicable)
Complete the Application Form: Fill out the Tax Credit for an On-the-Job Training Period form (TP-1029.8.33.6-V). Ensure all information is accurate and complete.
Submit the Application: Submit the completed form along with the required documentation to the appropriate tax authority. Make sure to keep copies of all submitted documents for your records.
Review and Follow Up: Monitor the status of your application. Respond promptly to any requests for additional information or clarification from the tax authority.
Receive Tax Credit: Once your application is approved, the tax credit will be applied to your account. Ensure you understand how the credit will be applied to your tax obligations.
