AutoServiceWorld.com Update: Ontario Apprenticeship Training Tax Credit

The news item on enhancements to the Ontario Apprenticeship Training Tax Credit (ATTC) appearing on March 26 is in fact not a new program, nor is it restricted to the autobody trade. However, we have also learned that the changes are not widely known.

AutoServiceWorld.com has learned that the ATTC is a refundable tax credit available to businesses on the salaries and wages paid to eligible apprentices in designated construction, industrial, motive power and service trades.

The credit amount increase from $5000 to $10,000 was announced March 26, 2009 as part of the Ontario budget. Changes included:

* increase the 25 per cent ATTC rate to 35% and the enhanced 30% rate for small businesses to 45 per cent;

* increase the $5,000 annual maximum tax credit to $10,000;

* extend the ATTC to salaries and wages paid during the first 48 months of an apprenticeship program; and

* make the ATTC a permanent tax incentive.

Follow this  link to the page regarding the update to the apprenticeship provisions updates: http://www.rev.gov.on.ca/en/credit/attc/index.html

Instructions for eligibility for employers and forms can be found here: http://www.rev.gov.on.ca/en/bulletins/ct/3020.html

An additional $1000 tax credit is also available from the Federal Government. Details can be found here: http://www.hrsdc.gc.ca/eng/workplaceskills/trades_apprenticeship/index.shtml

Special thanks to Scott Smith at the Automotive Industries Association of Canada for the clarification.