Co-operative Graduate Hiring Incentive (COG-HI) — Manitoba

Insider Tip

Stack COS-HI (student credit during placement) with COG-HI (graduate credit after hiring) to maximize value from one co-op student — claim COS-HI during their work term, then transition to COG-HI if you hire them full-time post-graduation. The credit reduces taxes owed and is fully refundable — you receive a cheque for any amount exceeding your tax liability. Confirm the student's program is on the Manitoba Co-operative Education Programs Registry before hiring, or contact the Tax Assistance Office first. Work-related requirement means the job title should align with the graduate's program — document this clearly. Note: unincorporated employers explicitly eligible (sole props, private cos, co-ops, Crown corps, municipally-owned businesses, not-for-profits, tax-exempt corps).

Success Profile

Any Manitoba employer in any industry who hires co-op program graduates into permanent full-time roles. Particularly valuable for technology, engineering, and business companies that regularly recruit from university co-op programs. Simple to claim — no competitive process, just documentation.

Evaluation Criteria

No competitive evaluation — entitlement tax credit. Manitoba Tax Assistance Office verifies: (1) graduate holds a certificate/degree/diploma from a registered Manitoba co-op program, (2) employment is permanent full-time and started within 18 months of graduation, (3) work is primarily performed in Manitoba and related to the co-op field, (4) two-year employment limit not exceeded. All documentation must be provided to the TAO.

Application Steps

Required Documents 5

Eligible Expenses 2

• Salary and wages paid to the co-op graduate during the first two full years of permanent full-time employment
• Net wages (government assistance from other programs must be deducted first)

Ineligible Expenses 5

• Wages for temporary, contract, or part-time positions
• Wages for work not primarily performed in Manitoba
• Wages for positions not related to the graduate's co-op program field of study
• Wages paid for placement or work terms (use COS-HI instead)
• Benefits, employer CPP/EI contributions, or non-wage compensation

Intake Periods

Ongoing — no intake windows. Apply to the TAO after the first full year of employment, then claim on annual tax return.

Deadline Notes

No separate application deadline. Credit is claimed on the Manitoba corporate or individual income tax return for the tax year in which eligible wages were paid. Employers must wait until the first full year of employment is completed before applying to the Manitoba Tax Assistance Office for certification. Employment must start within 18 months of graduation.

Open Application Portal →

Ineligible Organizations

• Provincial government departments
• Federal government departments
• Employers where the majority of work is performed outside Manitoba

Compatible Programs

Clawback Risk

Low Risk

No formal clawback mechanism — tax credit is claimed annually. If the graduate leaves before the second year, the employer simply does not claim the second year's credit. Risk limited to audit of eligibility documentation.