One of the main advantages of an apprenticeship compared to college or university programs is that you have the opportunity to earn while you learn. Still, there are costs associated with becoming an apprentice.
There are a range of potential funding supports available for apprentices. As you work through your journey to apprenticeship with your employment counsellor, consider some of these sources of funding to help you along. Remember, this list may not be complete – your labour market research may also help you to find other sources of funding.
Support to Non-EI Eligible Apprentices during in-school training
This initiative will provide up to $1500 of taxable financial supports for apprentices who are not eligible for federal Employment Insurance (EI) who attend full time in-school training at a Delivery Agency approved by the Ministry of Training Colleges and Universities.
- Be a resident of Ontario
- Be out of high school
- Have completed a full-time apprenticeship in-school training at an approved MTCU Training Delivery Agent on or after January 1, 2010 while being registered as an Ontario apprentice without being eligible for Employment Insurance benefits for the duration of the level of in-school training.
Excludes individuals who:
- Are completed apprentices who are in default of an Ontario Student loan or a Loans for Tools loan
- Are registered in the Ontario Youth Apprenticeship Program
- complete a level of in-school training in a way other than by attending school full- time
- are Registered in the Pre-Apprenticeship Training Program
- Received a wage from their employer while they attended school training
- Attended Water Meter Installer (800A) in-school training as this is classified as a “skill set” rather than an apprenticeship program
How to get this service?
The ministry will mail to eligible apprentices an application form to complete indicating their eligibility for the bonus.
- Apprentices who have completed their training from January 1, 2010 to April 30, 2010 will have 180 days from the date on the application letter to return their application to MTCU. These clients must include a Record of Employment for the time enrolled in the level of in-school training or a copy of their Notice of Non-EI Eligibility from Service Canada with their application
- Apprentices who have completed their training after April 30, 2010 will have 180 days from the date of their training completion to return their application to MTCU. These clients must include a copy of their Notice of Non-EI Eligibility from Service Canada in their application
- Any application received after the 180-day time limit will not be eligible for the support
Apprenticeship Completion Bonus in Non-Red Seal Trades
The apprenticeship completion bonus in non-Red Seal trades is a taxable cash grant of $2,000. The grant is available to registered apprentices after they successfully complete their apprenticeship training and obtain their Certificate of Apprenticeship and, where available, their Certificate of Qualification in any Ontario non-Red Seal trade, on or after April 1, 2009
- Be a resident of Ontario
- Be out of high school
- Have completed an apprenticeship program in Ontario in a trade that is designated as a non-Red Seal on or after April 1, 2009
- Have received an Ontario Certificate of Apprenticeship for a non-Red Seal trade that does not have an Ontario Certification of Qualification examination; or an Ontario Certification of Apprenticeship and an Ontario Certificate of Qualification for a trade that has an Ontario Certificate of Qualification examination on or after April 1, 2009
An individual is not eligible:
- If an Ontario Certificate of Apprenticeship or an Ontario Certification of Qualification is obtained in one of the designated non-Red Seal trades without having completed an apprenticeship program in Ontario for that trade. Trade qualifiers are not eligible for the bonus
The 2004 Budget included a new $1,000 Apprenticeship Scholarship for youth.
- Have left school before completing the necessary academic requirements for registering in a trade
- Be committed to achieving the necessary academic requirements within one year
- Demonstrate an interest in the skilled trades
A young person participating in the program will receive a $1,000 scholarship if they have:
- completed his or her academic upgrading
- are employed and
- are registered as an apprentice
Apprenticeship Incentive Grant
The Apprenticeship Incentive Grant (AIG) is a taxable cash grant of $1,000 per year, up to a maximum of $2,000 per person, available to registered apprentices once they have successfully finished their first or second year/level (or equivalent) of an apprenticeship program in one of the Red Seal trades.
- Canadian citizen, permanent resident or protected person
- Are not a high school student
- Are a registered apprentice with an employer, training trust fund, union training centre, joint apprenticeship training committee, or apprenticeship authority
- Are in a Red Seal trade program that is designated as such in the province or territory where you are registered as an apprentice
- Are able to show through required supporting documents that I have successfully completed the first or second year/level (or equivalent) within an eligible apprenticeship program
- Are within the application deadline: June 30 of the calendar year following the date I completed the year/level (or equivalent) for which you are applying
Apprenticeship Completion Grant (Red Seal Trades)
The Apprenticeship Completion Grant (ACG) is a taxable cash grant of $2,000 maximum available to registered apprentices who have successfully completed their apprenticeship training and obtained their journeyperson certification in a designated Red Seal trade on or after January 1, 2009.
- Is a Canadian citizen, permanent resident, or protected person
- Is not a high school student
- Is able to show through required supporting documents that I have successfully completed an apprenticeship program as a registered apprentice in a designated Red Seal trade
- Is within the application deadline: June 30 of the calendar year following the date you completed my apprenticeship program
Loans for Tools
The Loans for Tools program offers new apprentices a loan to help them buy the tools and equipment they need to perform the trade in which they are registered.
Who can participate?
The Loans for Tools is available to newly registered apprentices.
How can I access the Loans for Tools program?
To apply for a loan, apprentices should complete in full the loans agreement contained in the information package sent automatically to each newly registered apprentice, and then send it back to the Ministry of Training, Colleges and Universities in the return envelope provided. The ministry will respond within 60 days of receiving the signed loans agreement.
Tradesperson’s Tools Deduction
An individual may be able to deduct the cost of eligible tools they bought to earn employment income as a tradesperson and as an eligible apprentice mechanic. This cost includes any HST that was paid.
You are an eligible apprentice mechanic if you:
- are registered in a program established under the laws of Canada or of a province or territory that leads to a designation under those laws as a mechanic licensed to repair self-propelled motorized vehicles (such as automobiles, aircraft, boats, or snowmobiles); and are employed as an apprentice mechanic.
As an eligible apprentice mechanic, you must first calculate the tradesperson's tools deduction, if any, that you qualify for. You may qualify for that deduction if you bought eligible tools for your job in 2010. You can then complete the calculation described in the section called Deduction for tools for an eligible apprentice mechanic to determine if you can also make this claim in 2010.
An eligible tool is a tool (including associated equipment such as a toolbox) that:
- was bought to use on the job as a tradesperson and was not used for any purpose before it was bought;
- the employer certified as being necessary for the individual to provide as a condition of, and for use in, the job as a tradesperson; and
- is not an electronic communication device (like a cell phone) or electronic data processing equipment (unless the device or equipment can be used only for the purpose of measuring, locating, or calculating).
The employer has to complete and sign Form T2200, Declaration of Conditions of Employment. The employer needs to complete question 11 of Part B of the form to certify that the tools being claimed were bought and provided by the individual as a condition of his/her employment as a tradesperson. Attach to Form T2200 a list of the tools that are being claimed, as well as the related receipts. It is not required to include Form T2200, the receipts, or the list of tools with the return, but one should keep them in case they are asked for.
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