Tax Credit
Federal
Active
Apprenticeship Job Creation Tax Credit (AJCTC)
Canada Revenue Agency (CRA)
Maximum Credit
10% of eligible costs
Ongoing
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.
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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
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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How to claim
Insider tips, common pitfalls, and what successful applicants look like
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Insider TipThis 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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The pitfalls, the checklist and the reviewer notes are in the Playbook below. See what it includes ↓
What's in this Playbook
Everything you need to claim AJCTC
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 4-document checklist with what each reviewer is actually checking
- Your Application Game Plan — the print-ready PDF the preview below describes
- 4-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- 4-program stacking strategy to combine with compatible funding
- Success profile + evaluation criteria — exactly what the program administrators check
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Application Playbook
Step-by-step process, required documents, and expenses
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4 steps
4 docs
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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4 partners
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.) | Between intakes — the... |
| 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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Full Playbook: AJCTC
4 steps · 4 docs · reviewer insights