Apprenticeship Grants & Tax Credits in Ontario 2026
Whether you are an apprentice starting your career or an employer hiring one, Ontario and Canada offer significant grants, tax credits, and loans to support skilled trades training. Here is every apprenticeship funding program available in 2026.
Grants for Apprentices (Individuals)
Apprenticeship Incentive Grant (AIG)
Deadline: Apply after completing each level
Taxable grant of $1,000 for registered apprentices who complete their first or second year/level of an apprenticeship in a Red Seal trade. Apply within 18 months of completing each level.
Apprenticeship Completion Grant (ACG)
Deadline: Apply after certification
One-time taxable grant of $2,000 for apprentices who earn their Red Seal certification or provincial Certificate of Qualification. Combined with AIG, you receive up to $4,000 total.
Canada Apprentice Loan
Deadline: Apply before each training period
Interest-free loan during your apprenticeship training period. Covers living costs while you attend in-school technical training. No payments or interest until training is complete.
Tradesperson's Tools Deduction
Deadline: Claim on annual tax return
Deduct the cost of eligible tools purchased for your trade that exceed the $1,368 threshold (2026). Your employer must certify the tools are required. Apprentice mechanics have an enhanced deduction.
Tax Credits for Employers Who Hire Apprentices
Ontario Apprenticeship Training Tax Credit
Deadline: Claim on corporate tax return
Refundable tax credit for Ontario employers. Small businesses (under $500,000 payroll) claim 25-30% of eligible expenditures, up to $10,000 per apprentice per year. Larger employers claim up to $5,000. Applies to first 48 months of apprenticeship.
Apprenticeship Job Creation Tax Credit
Deadline: Claim on corporate tax return
Non-refundable federal tax credit equal to 10% of eligible salaries and wages paid to apprentices in their first two years. Maximum $2,000 per apprentice per year. Can be claimed alongside the Ontario credit.
Canada-Ontario Job Grant (COJG)
Deadline: Ongoing (apply before training)
Government covers 2/3 of eligible training costs per employee, up to $10,000. Includes apprentice training, safety certifications, and skills upgrading. For unemployed new hires, up to 100% may be covered.
Ontario Skills Development Fund
Deadline: Intake periods
Provincial fund supporting training organizations, unions, and industry groups that deliver apprentice training programs. Over $700M funded to date. Individuals access training through funded providers.
How to Stack Apprenticeship Benefits
Register Your Apprenticeship
Register with the Ontario Ministry of Labour, Immigration, Training and Skills Development (MLITSD). This is required before you can access any apprenticeship grants. Find a sponsor employer and sign a training agreement.
Apply for the Canada Apprentice Loan
Before each period of in-school technical training, apply for the interest-free loan of up to $4,000. This covers living costs while you are not earning wages. Apply through the National Student Loans Service Centre.
Claim EI Benefits During In-School Training
Apprentices can receive Employment Insurance benefits during in-school training periods. Apply through Service Canada. This is separate from the Apprentice Loan and can be used together.
Collect AIG After Each Level
After completing your first and second year/level, apply for the $1,000 Apprenticeship Incentive Grant within 18 months. That is $2,000 over your apprenticeship, paid directly to you.
Get Your Completion Grant
Once you earn your Red Seal or Certificate of Qualification, apply for the $2,000 Apprenticeship Completion Grant. Combined with AIG, you receive $4,000 in grants over your apprenticeship.
Deduct Your Tools
Every year, claim the tradesperson's tools deduction on your tax return. Keep receipts for every tool you buy. Your employer needs to certify the tools are required (Form T2200).
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Employer Benefits at a Glance
Employers who hire apprentices in Ontario can stack these credits:
| Credit | Level | Amount |
|---|---|---|
| Ontario Apprenticeship Training Tax Credit | Provincial | Up to $10,000/yr |
| Apprenticeship Job Creation Tax Credit | Federal | Up to $2,000/yr |
| Canada-Ontario Job Grant (training) | Joint | Up to $10,000 |
| Total per apprentice (Year 1) | Up to $22,000 | |
Provincial and federal credits can be claimed simultaneously. The COJG is a separate application from the tax credits.
Eligible Red Seal Trades in Ontario
Most apprenticeship grants require registration in a designated trade. Ontario has over 140 apprenticeable trades, including 55+ Red Seal trades. Popular Red Seal trades include:
Electrician
309A / 442APlumber
306AHVAC Technician
313ACarpenter
403AAutomotive Technician
310SPainter & Decorator
404CSheet Metal Worker
308AWelder
456AHeavy Duty Equipment Tech
421AOfficial Resources
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What grants are available for apprentices in Ontario?
Ontario apprentices can access: the Apprenticeship Incentive Grant ($1,000/year, up to $2,000), the Apprenticeship Completion Grant ($2,000 one-time), the Canada Apprentice Loan (up to $4,000 per period, interest-free during training), the Tools Deduction (deduct cost of tools over $1,368), and Employment Insurance during in-school training. Employers can claim the Apprenticeship Training Tax Credit (up to $10,000/apprentice) and the federal Apprenticeship Job Creation Tax Credit ($2,000/apprentice/year).
What is the Ontario Apprenticeship Training Tax Credit?
The Ontario Apprenticeship Training Tax Credit is a refundable tax credit for employers who hire and train apprentices in eligible skilled trades. Small businesses (under $500,000 payroll) can claim 25-30% of eligible expenditures, up to $10,000 per apprentice per year. Larger businesses can claim 25%, up to $5,000 per apprentice per year. It applies to wages paid during the first 48 months of the apprenticeship.
How do I apply for the Canada Apprentice Loan?
Apply through the National Student Loans Service Centre (NSLSC) at canada.ca. You must be registered as an apprentice in a Red Seal trade, be a Canadian citizen or permanent resident, and be confirmed for an upcoming period of technical training. The loan provides up to $4,000 per period of technical training and is interest-free while you are in training.
Can I deduct tools on my taxes as an apprentice?
Yes. If you are a tradesperson or apprentice mechanic, you can deduct the cost of eligible tools that exceed $1,368 (2026 threshold, adjusted annually). The tools must be required by your employer as a condition of employment, and your employer must certify this on Form T2200. The maximum deduction for apprentice mechanics is the lesser of the cost of tools minus $1,368, or your net income from the trade.
What is the Skills Development Fund in Ontario?
The Ontario Skills Development Fund provides grants to organizations (unions, training centres, industry groups) that deliver training to workers, including apprentices. While individuals cannot apply directly, the fund supports training programs that apprentices can access. Projects focus on emerging skills, underrepresented groups in the trades, and innovative training delivery. Recent rounds have funded over $700 million in training projects across Ontario.