8.4.5 (1) The amount of an eligible employer’s apprenticeship training tax credit for a taxation year is the total of all amounts each of which is calculated under subsection (3) in respect of the employer’s eligible expenditures under this section for the taxation year for each apprentice employed in a qualifying apprenticeship.  2004, c. 31, Sched. 19, s. 10. Eligible employer (2) For the purposes of this section, an individual is an eligible employer in respect of a taxation year if he or she, (a) carries on business through a permanent establishment in Ontario in the taxation year; and (b) is not exempt from tax under section 6.  2004, c. 31, Sched. 19, s. 10. Calculation of credit (3) The amount referred to in subsection (1) in respect of an eligible employer’s eligible expenditures for a taxation year for an apprentice employed in a qualifying apprenticeship is the total of “A” and “B” where, “A” is the lesser of, (a) the product obtained by multiplying the employer’s specified percentage for the taxation year by the employer’s eligible expenditures made during the taxation year for the apprentice employed in the qualifying apprenticeship, and (b) the amount calculated using the formula, $5,000 × C/D in which, “C” is the total number of days in the taxation year that the apprentice was employed by the employer as an apprentice in a qualifying apprenticeship and that were, (a)  after May 18, 2004 and before January 1, 2015, and (b)  during the first 36 months the apprentice was in the apprenticeship program, and “D” is 365 days or, if the taxation year includes February 29, 366 days, and “B” is the amount calculated by multiplying the amount of government assistance repaid by the employer in the taxation year by the employer’s specified percentage for the taxation year in which the government assistance was received, to the extent that the repayment does not exceed the amount of the government assistance previously received by the employer in respect of the qualifying apprenticeship that, (a) has not been repaid in a prior taxation year, and (b) can reasonably be considered to have reduced the amount of the apprenticeship training tax credit that would otherwise have been allowed to the employer under subsection 8 (16.1) in respect of the qualifying apprenticeship. 2004, c. 31, Sched. 19, s. 10; 2005, c. 31, Sched. 11, s. 7 (1); 2007, c. 7, Sched. 17, s. 2 (1). Specified percentage (4) An employer’s specified percentage for a taxation year is the following: 1. 25 per cent if the total of all salaries or wages paid by the employer in the previous taxation year is $600,000 or more. 2. The percentage determined under subsection (5) if the total of all salaries or wages paid by the employer in the previous taxation year is greater than $400,000 but less than $600,000. 3. 30 per cent in any other case.  2004, c. 31, Sched. 19, s. 10. Same (5) The percentage referred to in paragraph 2 of subsection (4) is calculated by adding 25 per cent and the percentage calculated using the formula, 5% × [1 – (E/200,000)] in which, “E” is the total amount of salaries and wages paid by the employer in the previous taxation year that is in excess of $400,000. 2004, c. 31, Sched. 19, s. 10. Qualifying apprenticeship (6) For the purposes of this section, a qualifying apprenticeship is an apprenticeship that would be a qualifying apprenticeship for the purposes of section 43.13 of the Corporations Tax Act if the employer of the apprentice were a corporation rather than an individual.  2004, c. 31, Sched. 19, s. 10. End of apprenticeship (7) For the purposes of this section, a qualifying apprenticeship shall be deemed to end on the earlier of the date on which the apprentice is entitled to receive the appropriate certificate under the Apprenticeship and Certification Act, 1998 or the Trades Qualification and Apprenticeship Act or the date, if any, on which the training agreement or contract of apprenticeship is cancelled by the Ministry of Training, Colleges and Universities.  2004, c. 31, Sched. 19, s. 10. Eligible expenditure (8) Subject to subsections (10) and (11), each of the following amounts paid by an employer in respect of a qualifying apprenticeship is an eligible expenditure for the taxation year: 1. An amount paid to an apprentice in a qualifying apprenticeship if, i. the amount is on account of salary or wages paid to an employee who reports for work at a permanent establishment of the employer in Ontario, ii. the amount is required by subdivision a of Division B of Part I of the Federal Act to be included in the apprentice’s income from a source that is an office or employment, iii. the amount is in respect of a qualifying apprenticeship and is paid or payable for services performed by the apprentice for the employer after May 18, 2004 and before January 1, 2015, and iv. the amount relates to services provided by the apprentice to the employer during the first 36 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program. 2. A fee paid to an employment agency in consideration for the provision of services performed by the apprentice in the qualifying apprenticeship if, i. the services are performed by the apprentice primarily at a permanent establishment of the employer in Ontario, ii. the fee is paid or payable for services performed by the apprentice for the employer after May 18, 2004 and before January 1, 2015, and iii. the fee relates to services performed by the apprentice for the employer during the first 36 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program.  2005, c. 31, Sched. 11, s. 7 (2); 2007, c. 7, Sched. 17, s. 2 (2). Same (9) Subject to subsections (10) and (11), such other expenditures as may be prescribed are eligible expenditures of an employer for a taxation year if the prescribed conditions are satisfied.  2004, c. 31, Sched. 19, s. 10. Exception (10) An expenditure made by an employer in respect of a qualifying apprenticeship is not an eligible expenditure, (a) if the apprentice serves the apprenticeship with a person other than the employer; or (b) to the extent that the amount of the expenditure would not be considered to be reasonable in the circumstances by persons dealing with each other at arm’s length.  2004, c. 31, Sched. 19, s. 10. Total eligible expenditures (11) The total of eligible expenditures made by an employer in respect of a qualifying apprenticeship in a taxation year is calculated using the formula, F – G in which, “F” is the sum of the amounts determined under subsections (8) and (9), and “G” is the amount of all government assistance, if any, that the employer has received, is entitled to receive or may reasonably be expected to be entitled to receive in respect of the eligible expenditures at the time the employer’s return for the taxation year is required to be delivered under this Act. 2004, c. 31, Sched. 19, s. 10. Employment agencies (11.1) If an employer pays a fee to an employment agency in respect of a qualifying apprenticeship that is an eligible expenditure of the employer for a taxation year, (a) the employer is deemed to employ the apprentice for the purposes of the definition of “C” in the definition of “A” in subsection (3), and the employment agency is deemed not to employ the apprentice; and (b) the apprentice is deemed to serve the apprenticeship with the employer for the purposes of clause (10) (a), and not with the employment agency.  2005, c. 31, Sched. 11, s. 7 (3). Limitation (11.2) If an amount paid by an employer is an eligible expenditure under this section and is also an eligible expenditure for the purposes of section 8.2, the employer may include the amount in computing the amount of a tax credit under this section or in computing the amount of a tax credit under section 8.2 and not in computing both tax credits.  2005, c. 31, Sched. 11, s. 7 (4). Partnerships (12) If an eligible employer is a member of a partnership at the end of a taxation year and if the partnership incurs, in a fiscal period of the partnership that ends in the taxation year, an expenditure that would be included in computing the apprenticeship training tax credit of the employer if the expenditure had been incurred by the employer, the eligible employer who is a member of the partnership may include, in determining the amount of his or her apprenticeship training tax credit, that portion of the expenditure that may reasonably be attributed to him or her.  2004, c. 31, Sched. 19, s. 10. Limited partner (13) Subsection (12) does not apply if the eligible employer is a limited partner in the partnership.  2004, c. 31, Sched. 19, s. 10. Definition (14) In this section, “government assistance” means assistance from a government, municipality or other public authority in any form, including a grant, subsidy, forgivable loan, deduction from tax or investment allowance, but does not include an apprenticeship training tax credit under subsection 8 (16.1) or any other amount that may be prescribed.  2004, c. 31, Sched. 19, s. 10. Section Amendments with date in force (d/m/y) 2004, c. 31, Sched. 19, s. 10 - 18/05/2004 2005, c. 31, Sched. 11, s. 7 (1-3) - 16/12/2004; 2005, c. 31, Sched. 11, s. 7 (4) - 15/12/2005 2007, c. 7, Sched. 17, s. 2 (1, 2) - 17/05/2007 2009, c. 22, s. 98
- no effect - see Table of Public Statute Provisions Repealed Under Section 10.1 of the Legislation Act, 2006 - 31/12/2019 Ontario child care supplement for working families