Tax Credit
Provincial
Active
Ontario Co-operative Education Tax Credit (OCELC)
Government of Ontario (administered via Canada Revenue Agency — Schedule 550 / Form ON479)
Maximum Credit
25–30% of eligible costs
Ongoing — claimed annually on corporate tax return for the year the placement...
Difficulty
Easy
Payment
Tax Credit Offset
Trend
Stable
First-Timers
Friendly ✓
Credit rate
30%
Ontario Co-operative Education Tax Credit (OCELC) provides up to 25–30% refundable tax credit on co-op student wages; maximum $3,000 per qualifying work placement. A refundable Ontario tax credit that reimburses businesses for hiring post-secondary co-op students. 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
A refundable Ontario tax credit that reimburses businesses for hiring post-secondary co-op students. Eligible employers claim 25–30% of wages paid to qualifying work placement students, up to $3,000 per placement per tax year. The credit is refundable, meaning companies receive a cash refund even if they owe no Ontario tax. Smaller businesses (prior-year payroll under $400K) receive the higher 30% rate.
Eligibility Requirements
- Corporations or unincorporated businesses with a permanent establishment in Ontario
- Subject to Ontario corporate income tax or Ontario personal income tax
- Must hire students enrolled in a formally approved post-secondary co-operative education program
- Work placement must be developed and/or approved by an eligible Ontario educational institution
- Student must perform productive work (not observation only) and receive compensation
- Placement must be a minimum of 10 consecutive weeks (regular co-op) or 8–16 consecutive months (co-op internship)
- Employer must supervise and formally evaluate the student's performance
- Educational institution must monitor student progress during the placement
- Eligible institutions: Ontario universities, colleges of applied arts and technology, Michener Institute, Ontario College of Art and Design, and Redeemer University College
Provinces
Industries
Business Stage
Quick Assessment
Difficulty
Easy
Competition
Low
First-Timer
Friendly
Funding Details
- Amount
- 25–30% refundable tax credit on co-op student wages; maximum $3,000 per qualifying work placement
- Type
- Tax Credit
- Level
- Provincial
- Credit rate
- Up to 30% of eligible costs
- Deadline
- Ongoing — claimed annually on corporate tax return for the year the placement ends
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 OCELC
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 5-document checklist with what each reviewer is actually checking
- 5-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- 2-program stacking strategy to combine with compatible funding
- Success profile + evaluation criteria — exactly what the program administrators check
$19 covers this one program. $39/mo covers every program, plus the workspace that walks you through each application.
How to claim
Insider tips, common pitfalls, and what successful applicants look like
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Insider TipThe credit is often missed by SMBs because it requires a certification letter from the school — many employers forget to request this.
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See what trips up most applicants for this program — and how to avoid it.
Success Profile
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Evaluation Criteria
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Common rejection pitfalls, what successful claimants look like, and exactly what the program administrators check
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Application Playbook
Step-by-step process, required documents, and expenses
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5 steps
5 docs
Application Steps
1
Obtain a certification letter from the educational institution At the start of the placement, contact the co-op coordinator at the student's university or college and request a letter confirming the work placement meets the program's co-op requirements. This is required for CRA.
Required Documents 5
✓ Letter of certification from the educational institution confirming the work placement meets co-op program requirements
✓ Records of wages and taxable benefits paid to the student during the placement period
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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2 partners
Compatible Programs
Student Work Placement Program (SWPP) — federal
Manitoba Co-op Tax Credit (ids 461, 462 in catalog)
Combined Funding Potential
See your total funding potential
Clawback Risk
Low Risk
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How OCELC Compares
Side-by-side with similar programs
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| Program | Amount | Difficulty | Payment | Deadline |
|---|---|---|---|---|
| Ontario Co-operative Education Tax Cr... | 25–30% | Easy | Tax Credit Offset | Ongoing — claimed... |
| Student Work Placement Program (SWPP) | 50% of student wages | Easy | Reimbursement | Ongoing |
| Ontario Job Grant (formerly Canada-On... | Up to $10,000 per employee | Easy | Varies | Ongoing — year-round... |
| Ontario Innovation Tax Credit | Up to 8% tax credit | Moderate | Tax Credit Offset | Ongoing |
| Commercial Façade Improvement Grant P... | Up to $12,500 (50% of costs) | Easy | Reimbursement | Annual Intake |
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 OCELC
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Is this credit refundable even if I owe no Ontario tax?
Yes — the OCELC is refundable. If your Ontario tax credit exceeds your tax payable, the excess is paid to you as a cash refund.
What's the difference between the 25% and 30% rates?
Employers with a prior-year Ontario payroll of $400,000 or less receive 30%. Those with payrolls of $600,000 or more receive 25%. Companies between $400K and $600K receive a sliding rate between the two.
Do I need to apply anywhere before hiring a co-op student?
No — this is an entitlement tax credit. No pre-approval is needed. Simply hire the student, get the certification letter from the school, and claim the credit when filing your tax return.
Can I combine this with the federal Student Work Placement Program (SWPP)?
Yes — but the SWPP amount you receive reduces the eligible wages for the Ontario credit. The combined benefit is still positive, but coordinate both with your accountant to avoid over-claiming.
What happens if I forget to get the certification letter?
The credit requires a valid certification letter from an eligible institution. CRA may disallow the claim on audit without it. Request the letter at the start of each placement.
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Full Playbook: OCELC
5 steps · 5 docs · reviewer insights