Apprenticeship training tax credit part of 2004 Ontario budget

TORONTO, (Aug. 3, 2004) — Ontario businesses would be eligible for a 25 per cent refundable tax credit on wages and salaries paid to apprentices during the first 36 months, if a new Apprenticeship Training Tax Credit proposal is passed in the legislature.

Corporations and unincorporated businesses with total payroll costs not exceeding $400,000 would be eligible for a higher tax credit rate of 30 per cent. The maximum tax credit per apprentice would be $5,000 per year over the first 36 months of the apprenticeship.

Eligible apprentices would be in a qualifying skilled trade and must be hired before January 1, 2008. Qualifying skilled trades would include designated construction, industrial and motive power trades, as well as the service trades eligible under the present apprenticeship component of the Co-operative Education Tax Credit.

Motive Power Trades include: Parts Technician; Powered Lift Truck Technician; Tire Wheel And Rim Mechanic; Auto Body Collision Damage Repairer, Branch 1; Fuel and Electrical Systems Technician; Transmission Technician; Alignment & Brakes Technician; Motorcycle Mechanic; Truck Trailer Service Technician; Automotive Electronic Accessory Technician; Auto Body Repairer Branch 2; Automotive Service Technician; Truck And Coach Technician; Motive Power Machinist; Automotive Painter; Heavy Duty Equipment Technician; Turf Equipment Technician; Agricultural Equipment Technician; Small Engine Mechanic; Marine Engine Mechanic; Automotive Glass Technician; Recreation Vehicle Technician

Truck driving is not considered an apprenticed trade. However there is a movement afoot — initiated by several Ontario carriers and endorsed by the Ontario Trucking Association — to change that. The group that is walking this plan forward — including KRTS Transportation Specialists, TST Truckload, and MacKinnon Transport — report that the plan is picking up steam. At least one major insurance company is taking a serious look at the program.

Further details of the proposed tax credit, including transitional provisions for apprenticeships under the Co-operative Education Tax Credit, can be found in the 2004 Ontario Budget at www.ontariobudget.fin.gov.on.ca/bud04e/paperc.htm.