Ontario Co-Operative Education Tax Credit

What is it?

The Co-operative Education Tax Credit (CETC) is a refundable tax credit. It's available to employers operating unincorporated businesses who hire students enrolled in a recognized Ontario university or college co-operative education program.
Note: Certain qualifying leading-edge technology apprenticeship work placements previously included with this credit will instead now be claimed under the new Apprenticeship Training Tax Credit.

Canada Revenue Agency (CRA) administers the program on behalf of Ontario through the federal income tax system.

What is the benefit to your company?

An eligible employer may claim a refundable tax credit for each qualifying work placement ending in the tax year. The tax credit is equal to the lesser of: 10 to 15 percent of eligible expenditures made for the work placement, and $1,000. The formula required to calculate this tax credit plus a definition of eligible expenditures can be found in the Interpretation Bulletin Co-operative Education Tax Credit.

If a qualifying work placement ended in the tax year, the eligible employer may claim a maximum of $1,000 credit for each four months of employment, with a minimum employment of 10 weeks. The total tax credit would equal the sum of the tax credits for each qualifying work placement.

Who Qualifies?

Employers must:

• have a permanent establishment located in Ontario, and
• be subject to Ontario income tax, and
• incur eligible expenditures associated with hiring co-op students enrolled in an Ontario university or college.

Employers must hold a certified document from an eligible educational institution confirming that the employer has provided a qualifying co-op work placement to a student.
Although members of a partnership may share the CETC, limited partners are not entitled to this credit.

The tax credit can be claimed on the return of a person who died in the tax year.

How do I apply?

Claim your tax credit on Form ON479, Ontario Credits included in your federal income tax return.

Eligible corporations may claim this tax credit by completing CT23 Schedule 113 and entering the amount on Line 192 of the tax return.

Where can I find more information?

Please contact the Ministry of Finance, Tax Compliance and Regional Operations Branch
Specialty Assessments Unit
P.O. Box 629, 33 King St. West
Oshawa, ON L1H 8X4
Call 905-837-3814 or toll free 1-866-805-7702 Ext. 3814
Fax: 905-837-3824

Website: http://www.fin.gov.on.ca/

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