Co-operative Education Tax Credit

Now is a great time to take advantage of hiring a co-op student! Not only for the financial incentives, students also bring fresh ideas and new knowledge to the workplace and co-op provides employers with a cost-effective way to meet short-term staffing needs.

Co-operative Education Tax Credit Information

The Co-operative Education Tax Credit (CETC) is a refundable tax credit. The CETC is available to employers who hire students enrolled in a co-operative education program at an Ontario college or university.

To learn more on how to apply visit the Ontario Ministry of Revenue

The Benefit

The CETC is based on salaries and wages paid to a student in a co-operative education work placement. The maximum credit for each work placement is $3,000. Most work placements are for a minimum employment period of 10 weeks up to a maximum of four months.

Eligibility

Ontario businesses that hire students enrolled in a post-secondary co-operative education program are eligible for the CETC.

How to Apply

Incorporated Business

Corporations may claim the tax credit on Schedule T2SCH550 and file it with their T2 Corporation Income Tax Return.

Unincorporated Business

Employers operating unincorporated businesses may claim the credit on Form ON479, Ontario Credits, included in their personal income tax return.

Others

Members of partnerships claim their share of the credit on their own corporate or personal tax returns.

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

To learn more visit the CRA website for more information on the CETC