Apprenticeship Job Creation Tax Credit (AJCTC)
Eligibility & Details
What this program funds and who can apply
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
Quick Assessment
Funding Details
- Amount
- 10% of eligible salaries, max $2,000 per apprentice per year
- Type
- Tax Credit
- Level
- Federal
- Co-Funding
- Up to 10% of eligible costs
- Deadline
- Ongoing
Program Scorecard
Competition, effort, and approval at a glance
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How to Win
Insider tips, common pitfalls, and what successful applicants look like
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. Non-refundable but carries back 3 years and forward 20. Stack with provincial apprenticeship incentives (Ontario up to $17K per apprentice, Manitoba Paid Work Experience Tax Credit) for significant combined savings on trades hiring.
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Success Profile
A general contractor in Ontario with 5 first-year carpentry apprentices earning $45,000 each, claiming $2,000 × 5 = $10,000 in federal AJCTC plus provincial incentives.
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Evaluation Criteria
Entitlement-based — there is no competitive evaluation. Any employer meeting the basic requirements (valid apprenticeship contract in a Red Seal trade, apprentice in first 2 years, wages paid) automatically qualifies. The CRA verifies eligibility through the tax return filing process. No application, no jury, no merit assessment — if you qualify, you get the credit.
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Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 4
Eligible Expenses 4
- Salaries paid to eligible apprentices in prescribed Red Seal trades
- Wages paid during the first 24 months of the apprenticeship contract
- Mandatory employment-related costs associated with apprentice wages (EI, CPP employer contributions)
- Overtime wages paid to eligible apprentices during the qualifying period
Ineligible Expenses 5
- Wages paid after the first 24 months of the apprenticeship contract
- Wages for apprentices in non-Red Seal trades
- Training costs, tuition fees, or tool purchases
- Wages paid before May 1, 2006
- Benefits, bonuses, or non-salary compensation not classified as wages
Intake Periods
No intake periods — available continuously. Claim on your annual tax return for any tax year in which eligible wages were paid. Credit available for wages paid after May 1, 2006.
Deadline Notes
No deadline — available continuously. Claim on your annual tax return (T2 for corporations, T1 for sole proprietors). Non-refundable but carries back 3 years and forward 20.
Open Application Portal →Ineligible Organizations
- Employers with no federal tax liability (credit is non-refundable — but can carry forward 20 years)
- Employers of apprentices in non-Red Seal trades
- Employers of apprentices beyond their first 24 months of apprenticeship
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Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Low RiskSee which programs combine with this one — and how much more you could get. Unlock with Premium →
How AJCTC Compares
Side-by-side with similar programs
| Program | Amount | Difficulty | Payment | Deadline |
|---|---|---|---|---|
| Apprenticeship Job Creation Tax Credi... | 10% of eligible salaries | Easy | Tax Credit Offset | Ongoing |
| Strategic Response Fund (formerly Str... | Up to $50 million | Hard | Mixed (Advance + Reimb.) | Ongoing — continuous... |
| CanExport SMEs | Up to $50,000 | Moderate | Mixed (Advance + Reimb.) | Annual intake window.... |
| 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 |
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