89 (1) A taxpayer who complies with the requirements of this section may claim an amount for a taxation year in respect of and not exceeding the taxpayer’s apprenticeship training tax credit for the year.  2007, c. 11, Sched. A, s. 89 (1). Amount of tax credit (2) The amount of a taxpayer’s apprenticeship training tax credit for a taxation year is the total of all amounts each of which is in respect of a qualifying apprenticeship for the year and each of which is the sum of “A” and “B” where, “A” is the lesser of, (a) the sum of, (i) the product obtained by multiplying the taxpayer’s specified percentage for the taxation year in respect of eligible expenditures incurred before March 27, 2009 by the taxpayer’s eligible expenditures incurred during the year and before March 27, 2009 in respect of the qualifying apprenticeship, (ii) the product obtained by multiplying the taxpayer’s specified percentage for the taxation year in respect of eligible expenditures incurred after March 26, 2009 and in respect of an apprenticeship program that commenced before April 24, 2015 by the taxpayer’s eligible expenditures incurred during the year and after March 26, 2009 and in respect of an apprenticeship program that commenced before April 24, 2015, and (iii) the product obtained by multiplying the taxpayer’s specified percentage for the taxation year in respect of eligible expenditures incurred in respect of an apprenticeship program that commenced on or after April 24, 2015 by the taxpayer’s eligible expenditures incurred during the year and in respect of an apprenticeship program that commenced on or after April 24, 2015, and (b) the amount calculated under subsection (3), and “B” is an amount calculated by multiplying the amount of government assistance repaid by the taxpayer in the year by the percentage determined under subsection (3.1), to the extent that the repayment does not exceed the amount of the government assistance in respect of the qualifying apprenticeship that, (a) has not been repaid in a previous year, and (b) may reasonably be considered to have reduced the amount in respect of an apprenticeship training tax credit that would otherwise have been allowed to the taxpayer under this Act, the Corporations Tax Act or the Income Tax Act in respect of the qualifying apprenticeship.  2009, c. 34, Sched. U, s. 15 (1); 2015, c. 20, Sched. 40, s. 11 (1, 2). Specified percentage, eligible expenditures incurred before March 27, 2009 (2.1) For the purposes of subclause (a) (i) of the definition of “A” in subsection (2), a taxpayer’s specified percentage for the taxation year in respect of eligible expenditures incurred before March 27, 2009 is the following: 1. 25 per cent if the total of all salaries or wages paid by the taxpayer in the previous taxation year is $600,000 or more. 2. The percentage determined by adding 25 per cent and the percentage calculated using the following formula, if the total of all salaries or wages paid by the taxpayer in the previous taxation year is greater than $400,000 but less than $600,000: 0.05 × [1 – (AA/200,000)] in which, “AA” is the total amount of salaries or wages paid by the taxpayer in the previous taxation year that is in excess of $400,000. 3. 30 per cent in any other case.  2009, c. 34, Sched. U, s. 15 (1). Specified percentage, eligible expenditures incurred after March 26, 2009 (2.2) For the purposes of subclause (a) (ii) of the definition of “A” in subsection (2), a taxpayer’s specified percentage for the taxation year in respect of eligible expenditures incurred after March 26, 2009 and in respect of an apprenticeship program that commenced before April 24, 2015 is the following: 1. 35 per cent if the total of all salaries or wages paid by the taxpayer in the previous taxation year is $600,000 or more. 2. The percentage determined by adding 35 per cent and the percentage calculated using the following formula, if the total of all salaries or wages paid by the taxpayer in the previous taxation year is greater than $400,000 but less than $600,000: 0.10 × [1 – (BB/200,000)] in which, “BB” is the total amount of salaries or wages paid by the taxpayer in the previous taxation year that is in excess of $400,000. 3. 45 per cent in any other case.  2009, c. 34, Sched. U, s. 15 (1); 2015, c. 20, Sched. 40, s. 11 (3). Specified percentage, eligible expenditures incurred in respect of an apprenticeship program that commenced on or after April 24, 2015 (2.3) For the purposes of subclause (a) (iii) of the definition of “A” in subsection (2), a taxpayer’s specified percentage for the taxation year in respect of eligible expenses incurred in respect of an apprenticeship program that commenced on or after April 24, 2015 is the following: 1. 25 per cent if the total of all salaries or wages paid by the taxpayer in the previous taxation year is $600,000 or more. 2. The percentage determined by adding 25 per cent and the percentage calculated using the following formula, if the total of all salaries or wages paid by the taxpayer in the previous taxation year is greater than $400,000 but less than $600,000: 0.05 × [1 – (CC/200,000)] in which, “CC” is the total amount of salaries or wages paid by the taxpayer in the previous taxation year that is in excess of $400,000. 3. 30 per cent in any other case. 2015, c. 20, Sched. 40, s. 11 (4). Amount (3) For the purposes of clause (b) of the definition of “A” in subsection (2), the amount is calculated using the formula, ($5,000 × C/Y) + ($10,000 × D/Y) + ($5,000 × E/Y) in which, “C” is the total number of days in the taxation year that the apprentice was employed by the taxpayer as an apprentice in a qualifying apprenticeship and that were, (a) before March 27, 2009, and (b) within the first 36 months of the commencement of the apprentice in the apprenticeship program, “D” is the total number of days in the taxation year that the apprentice was employed by the taxpayer as an apprentice in a qualifying apprenticeship in an apprenticeship program that commenced before April 24, 2015 and that were, (a) after March 2009, and (b) within the first 48 months of the commencement of the apprentice in the apprenticeship program, “E” is the total number of days in the taxation year that the apprentice was employed by the taxpayer as an apprentice in a qualifying apprenticeship that is an apprenticeship program that commenced on or after April 24, 2015 and that were within the first 36 months of the commencement of the apprentice in the apprenticeship program, and “Y” is 365 days or, if the taxation year includes February 29, 366 days. 2009, c. 34, Sched. U, s. 15 (1); 2015, c. 20, Sched. 40, s. 11 (5-8). Same (3.1) For the purposes of determining the amount of “B” in subsection (2), (a) if the government assistance was received in respect of eligible expenditures incurred before March 27, 2009, the percentage is the specified percentage that would be determined under subsection (2.1) for the taxation year in which the government assistance was received; (b) if the government assistance was received in respect of eligible expenditures incurred after March 26, 2009 and in respect of an apprenticeship program that commenced before April 24, 2015, the percentage is the specified percentage that would be determined under subsection (2.2) for the taxation year in which the government assistance was received; and (c) if the government assistance was received in respect of eligible expenditures incurred in respect of an apprenticeship program that commenced on or after April 24, 2015, the percentage is the specified percentage that would be determined under subsection (2.3) for the taxation year in which the government assistance was received.  2009, c. 34, Sched. U, s. 15 (1); 2015, c. 20, Sched. 40, s. 11 (9-11). (4), (5) Repealed :  2009, c. 34, Sched. U, s. 15 (1). Same, amount of salaries or wages (6) For the purposes of subsections (2.1), (2.2) and (2.3), the amount of salaries or wages paid by a corporation in a previous taxation year is deemed to be the amount that would be calculated if the rules set out in subsections 87 (1.2) and (1.4) of the Federal Act applied.  2007, c. 11, Sched. A, s. 89 (6); 2009, c. 34, Sched. U, s. 15 (2); 2015, c. 20, Sched. 40, s. 11 (12). Qualifying apprenticeship (7) For the purposes of this section, a qualifying apprenticeship with a taxpayer is an apprenticeship in respect of which all of the following conditions and such other conditions as may be prescribed by the Minister of Finance are satisfied: 1.  Repealed :  2009, c. 34, Sched. U, s. 15 (3). 2. The taxpayer, or the taxpayer acting through a union or a local or joint apprenticeship committee, and the apprentice are participating in an apprenticeship program, i. in which the training agreement has been registered under the Ontario College of Trades and Apprenticeship Act, 2009 or the Apprenticeship and Certification Act, 1998 or in which the contract of apprenticeship has been registered under the Trades Qualification and Apprenticeship Act, and ii. that commenced on or before November 14, 2017. 3. The apprenticeship is in a qualifying skilled trade in the opinion of the Minister of Training, Colleges and Universities or a person designated by him or her.  2007, c. 11, Sched. A, s. 89 (7); 2009, c. 22, s. 100 (1); 2009, c. 34, Sched. U, s. 15 (3); 2017, c. 34, Sched. 40, s. 8. End of apprenticeship (8) For the purposes of this section, a qualifying apprenticeship is deemed to end on the earlier of the date on which the apprentice is entitled to receive the appropriate certificate under the Ontario College of Trades and Apprenticeship Act, 2009 or a predecessor of that Act and the date, if any, on which the training agreement or contract of apprenticeship is cancelled, suspended or revoked.  2009, c. 22, s. 100 (2). Eligible expenditure (9) Subject to subsections (12) and (13), each of the following amounts paid by a taxpayer 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 salary or wages paid on account of employment at a permanent establishment of the taxpayer 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 incurred before March 27, 2009 and relates to services provided by the apprentice to the taxpayer 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, iv. the amount is incurred after March 26, 2009 and in respect of an apprenticeship program that commenced before April 24, 2015 and relates to services provided by the apprentice to the taxpayer during the first 48 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program, and v. the amount is incurred in respect of an apprenticeship program that commenced on or after April 24, 2015 and relates to services provided by the apprentice to the taxpayer 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 taxpayer in Ontario, ii. the fee is paid or payable for services performed by the apprentice for the taxpayer, iii. the fee is incurred before March 27, 2009 and the fee relates to services provided by the apprentice to the taxpayer 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, iv. the fee is incurred after March 26, 2009 and in respect of an apprenticeship program that commenced before April 24, 2015 and the fee relates to services provided by the apprentice to the taxpayer during the first 48 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program, and v. the fee is incurred in respect of an apprenticeship program that commenced on or after April 24, 2015 and the fee relates to services provided by the apprentice to the taxpayer 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.  2007, c. 11, Sched. A, s. 89 (9); 2009, c. 34, Sched. U, s. 15 (4-6); 2015, c. 20, Sched. 40, s. 11 (13-18). Interpretation (10) For the purposes of this section, an apprenticeship program is deemed to commence on the date that the contract of apprenticeship is or was registered under the Trades Qualification and Apprenticeship Act or the training agreement is registered under the Ontario College of Trades and Apprenticeship Act, 2009 or the Apprenticeship and Certification Act, 1998, as the case may be.  2010, c. 1, Sched. 29, s. 7 (2); 2015, c. 20, Sched. 40, s. 11 (19). Other eligible expenditures (11) Subject to subsections (12) and (13), such other expenditures as may be prescribed are eligible expenditures of a taxpayer for a taxation year if the prescribed conditions are satisfied.  2007, c. 11, Sched. A, s. 89 (11). Exception (12) An expenditure made by a taxpayer in respect of a qualifying apprenticeship is not an eligible expenditure to the extent that the amount of the expenditure would not be considered to be reasonable in the circumstances by taxpayers dealing with each other at arm’s length.  2007, c. 11, Sched. A, s. 89 (12). Total eligible expenditures (13) For the purposes of this section, the total of eligible expenditures made by a taxpayer 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 (9) and (11), and “G” is the amount of all government assistance, if any, that, on the taxpayer’s filing-due date for the year, the taxpayer has received, is entitled to receive or may reasonably expect to receive in respect of the eligible expenditures. 2007, c. 11, Sched. A, s. 89 (13). Employment agencies (14) If a taxpayer pays a fee to an employment agency in respect of a qualifying apprenticeship that is an eligible expenditure of the taxpayer for a taxation year, (a) the taxpayer is deemed to employ the apprentice for the purposes of the definitions of “C”, “D” and “E” in subsection (3), and the employment agency is deemed not to employ the apprentice; and (b) the taxpayer is deemed to be participating in the apprenticeship program for the purposes of paragraph 2 of subsection (7), and the employment agency is deemed not to be participating in the apprenticeship program.  2007, c. 11, Sched. A, s. 89 (14); 2009, c. 34, Sched. U, s. 15 (7); 2015, c. 20, Sched. 40, s. 11 (20). Limitation (15) If an amount paid or payable by a taxpayer or a partnership is otherwise used as a basis for a taxpayer claiming a tax credit under section 88, section 43.4 of the Corporations Tax Act or subsection 8 (15) of the Income Tax Act, the amount so paid or payable is deemed to be nil for the purposes of determining the taxpayer’s tax credit under this section.  2007, c. 11, Sched. A, s. 89 (15). Partnerships (16) The following rules apply if a corporation or individual (in this section referred to as the “partner”) is a member of a partnership and the partnership would qualify for a fiscal period ending in a taxation year of the partner for an apprenticeship training tax credit if the partnership were a corporation or an individual, as the case may be, and the fiscal period were its taxation year: 1. Subject to paragraph 2, the portion of that apprenticeship training tax credit that may reasonably be considered to be the partner’s share of the tax credit may be included in determining the amount of the partner’s apprenticeship training tax credit for the partner’s taxation year. 2. If the partner or any other member of the partnership bases a claim in respect of the partnership for the taxation year under subsection (17), no amount in respect of the partnership may be included in determining the amount of the partner’s apprenticeship training tax credit for the partner’s taxation year otherwise than pursuant to subsection (17).  2007, c. 11, Sched. A, s. 89 (16). Same (17) If it is acceptable to the Ontario Minister, a partner’s share of a partnership’s apprenticeship training tax credit determined under subsection (16) for a fiscal period shall be equal to such amount as the partner claims not exceeding the amount, if any, by which the amount of that credit exceeds the total of all amounts each of which is claimed under this section, section 43.13 of the Corporations Tax Act
or subsection 8 (16.1) of the Income Tax Act in respect of the amount of that credit by any other partner.  2007, c. 11, Sched. A, s. 89 (17). Limited partner (18) Despite subsections (16) and (17), a limited partner’s share of a partnership’s tax credit referred to in subsection (16) is deemed to be nil.  2007, c. 11, Sched. A, s. 89 (18). Definitions (19) In this section, “apprenticeship program” means a program to which the Ontario College of Trades and Apprenticeship Act, 2009, or a predecessor of that Act applies or applied; (“programme d’apprentissage”) “government assistance” means assistance in any form from a government, municipality or other public authority, and includes a grant, subsidy, forgivable loan, deduction from tax or investment allowance, but does not include, (a) a tax credit under section 39 or this Part, any of sections 43.3 to 43.13 of the Corporations Tax Act
or subsection 8 (15) or (16.1) of the Income Tax Act, or (b) a tax credit under section 125.4, 125.5 or 127 of the Federal Act; (“aide gouvernementale”) “qualifying skilled trade” means an apprenticeship trade designated by the Minister of Finance that is or was regulated under the Ontario College of Trades and Apprenticeship Act, 2009, the Apprenticeship and Certification Act, 1998 or the Trades Qualification and Apprenticeship Act. (“métier spécialisé admissible”) 2007, c. 11, Sched. A, s. 89 (19); 2009, c. 22, s. 100 (4). Section Amendments with date in force (d/m/y) 2009, c. 22, s. 100 (1, 2, 4) - 08/04/2013; 2009, c. 22, s. 100 (3) - no effect - see 2010, c. 1, Sched. 29, s. 7 (3) - 28/10/2009; 2009, c. 34, Sched. U, s. 15 (1-7) - 27/03/2009 2010, c. 1, Sched. 29, s. 7 (1) - 27/03/2009; 2010, c. 1, Sched. 29, s. 7 (2) - 08/04/2013 2015, c. 20, Sched. 40, s. 11 (1-20) - 04/06/2015 2017, c. 34, Sched. 40, s. 8 - 14/12/2017 Division C — Corporations