Updated June 2026 · Verified against Canada Revenue Agency (CRA) guidelines
✓ First-Timer Friendly Tax Credit Offset Est. 2006
Tax Credit Federal Active

Apprenticeship Job Creation Tax Credit (AJCTC)

Canada Revenue Agency (CRA)
Maximum Credit
10% of eligible costs
Ongoing
Visit Official Program →
Difficulty
Easy
Payment
Tax Credit Offset
Trend
Stable
First-Timers
Friendly ✓
Credit rate
10%
Apprenticeship Job Creation Tax Credit (AJCTC) provides up to 10% of eligible salaries, max $2,000 per apprentice per year. Non-refundable investment tax credit equal to 10% of eligible salaries and wages paid to apprentices in prescribed Red Seal trades during their first two years of apprenticeship. Applications are accepted on an ongoing basis.
Eligibility check

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Eligibility & Details

What this program funds and who can apply

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Program Description

Non-refundable investment tax credit equal to 10% of eligible salaries and wages paid to apprentices in prescribed Red Seal trades during their first two years of apprenticeship. Maximum credit of $2,000 per apprentice per year. Available to all employers — corporations, sole proprietors, and partnerships. Carries back 3 years and forward 20 years.

Eligibility Requirements

  • Any employer hiring apprentices in prescribed Red Seal trades
  • Apprentice must be in first 2 years of apprenticeship program
  • Available to corporations, sole proprietors, and partnerships
  • Valid apprenticeship contract must be in place
Provinces
Industries
Business Stage
Startup Growth Established Expansion

Quick Assessment

Difficulty
Easy
Competition
Low
First-Timer
Friendly

Funding Details

Amount
10% of eligible salaries, max $2,000 per apprentice per year
Type
Tax Credit
Level
Federal
Credit rate
Up to 10% of eligible costs
Deadline
Ongoing

Program Scorecard

Competition, effort, and approval at a glance

Competition
Low
Deadline
Ongoing
Approval
Entitlement
Accessibility
--/5
Competition
--/5
Approval Rate
--%
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What's in this Playbook

Everything you need to claim AJCTC

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How to claim

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

This is one of the most accessible tax credits in Canada — any employer with a Red Seal apprentice in their first 2 years qualifies automatically.

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Success Profile

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Evaluation Criteria

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Application Playbook

Step-by-step process, required documents, and expenses

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Application Steps

1 Verify Apprentice Eligibility Confirm your apprentice is working in a prescribed Red Seal trade and is within the first 24 months of their registered apprenticeship contract with a federal, provincial, or territorial government.

Required Documents 4

T2 corporate tax return (or T1 for sole proprietors) with Investment Tax Credit schedule
Apprenticeship registration documentation

Eligible Expenses 4

Ineligible Expenses 5

Claim timing

Deadline Notes

Ineligible Organizations

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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Compatible Programs

Ontario Apprenticeship Training Tax Credit (ATTC) Canada-Alberta Job Grant Saskatchewan Apprenticeship Training Allowance Canada Job Grant (Provincial Variants)
Combined Funding Potential See your total funding potential

Clawback Risk

Low Risk
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How AJCTC Compares

Side-by-side with similar programs

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Program Amount Difficulty Payment Deadline
Apprenticeship Job Creation Tax Credi... 10% of eligible salaries Easy Tax Credit Offset Ongoing
Strategic Response Fund (formerly Str... Minimum $10 million contribution Hard Mixed (Advance + Reimb.) Ongoing — continuous...
CanExport SMEs Up to $50,000 Moderate Mixed (Advance + Reimb.) Applications accepted...
Ontario Innovation Tax Credit Up to 8% tax credit Moderate Tax Credit Offset Ongoing
Quebec R&D Tax Credit (CRIC — Researc... 20-30% tax credit (CRIC) Hard Tax Credit Offset Ongoing

Related Programs

Other programs you might be eligible for

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Frequently Asked Questions

Quick answers to the questions founders most often ask about AJCTC

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Can sole proprietors claim this credit?
Yes — sole proprietors, corporations, and partnerships all qualify. Claim on your T1 tax return (sole proprietors) or T2 (corporations) annually.
What's the realistic credit amount per apprentice?
Exactly $2,000 per apprentice per year — the maximum is achievable if the apprentice earns at least $20,000 in eligible wages during their first two years.
Why do applications fail?
Common failures: apprentice not in a prescribed Red Seal trade, past their first two years, or no valid apprenticeship contract on file.
Can I stack this with provincial programs?
Yes — Ontario offers up to $17K per apprentice via ATTC, Manitoba has a Paid Work Experience Tax Credit, and Alberta’s Canada-Alberta Job Grant covers training costs.
When do I get the credit?
Claim it on your annual tax return (T1 for sole proprietors, T2 for corporations) — no separate application needed. Credit carries back 3 years and forward 20.

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