The British Columbia Training Tax Credit Program provides a refundable tax credit for employees and employers engaged in apprenticeship programs administered through the Industry Training Authority.
The credit is applicable if an eligible employer employs an employee in the eligible period beginning on January 1, 2007, and ending on December 31, 2022.
You are not an eligible employer if:
- at any time in the taxation year, all or part or your taxable income is exempt from tax under Part l of the federal Income Tax Act;
- at any time in the taxation year you were exempt from tax under section 27 of the British Columbia Income Tax Act;
- at any time in the taxation year you were controlled directly or indirectly in any manner whatever by one or more persons all or part of whose taxable income is exempt from tax under section 27 of the British Columbia Income Tax Act or under Part I of the federal Income Tax Act.
There are three main elements to the B.C. Training Tax Credit Program: basic tax credit, completion tax credit and enhanced tax credit for First Nations individuals and persons with disabilities. The tax credits apply to individuals engaged in apprenticeship trainings and to their employers, including corporations, partnerships and sole proprietors.
Basic tax credit
The British Columbia basic training tax credit can be claimed by an eligible employer if the eligible employee was in a B.C.-recognized (non-Red Seal) apprenticeship program not currently eligible for the federal incentives.
The tax credit amount is the lesser of:
- $4,000; and
- 20% of the salary and wages paid to the eligible employee.
Completion tax credit
The completion tax credit will apply to both Red-Seal and non-Red Seal apprenticeship training programs and provide further benefits tied to the completion of higher training levels.
For an apprentice that completes level three of any apprenticeship program, the completion credit is the lesser of:
- $2,500; and
- 15% of the salary and wages paid to the eligible employee.
For an apprentice that completes level four or higher of any apprenticeship program, the completion credit is the lesser of:
- $3,000; and
- 15% of the salary and wages paid to the eligible employee.
Enhanced tax credit
The enhanced credit is provided to First Nations individuals or persons with disabilities who are entitled to a deduction under section 118.3(1) of the federal Income Tax Act for the taxation year.
The credit for an eligible apprentice in the first two years of any Red Seal program is the lesser of:
- $1,000; and
- 5.5% of the salary and wages paid to the eligible employee.
The credit for an eligible apprentice in the first two years of a non-Red Seal apprenticeship program is the lesser of:
- $6,000; and
- 30% of the salary and wages paid to the eligible employee.
The credit for an eligible apprentice that has completed level three of an eligible recognized apprenticeship program is the lesser of:
- $3,750; and
- 22.5% of the salary and wages paid to the eligible employee.
The credit for an eligible apprentice that has completed level four or higher of an eligible recognized apprenticeship program is the lesser of:
- $4,500; and
- 22.5% of the salary and wages paid to the eligible employee.
Salaries and wages
The salary and wages amount that you need to enter in the Salaries and Wages column is the amount paid in the eligible period to an eligible employee other than remuneration consisting of profits, bonuses, amounts described in section 6 or 7 of the federal Income Tax Act and amounts deemed to be incurred under section 78(4) of the federal Income Tax Act. You also need to subtract the designated assistance which would be the total of all amounts of government assistance and non-government assistance that the corporation has received, is entitled to received, or can reasonably be expected to receive in respect of the salaries and wages paid.