Unlock Tax Credits for Hiring Students

Ontario Co-operative Education Tax Credit

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

 

Amount

Eligible employers may qualify for the Co-operative Education Tax Credit which will reimburse your business up to 30 percent, or $3,000, of eligible costs for each co-op education work term. Employers have an opportunity to assess co-op students without any obligation, which turns out to be a low-cost personnel recruitment strategy.

Eligibility 

Ontario businesses that hire students enrolled in a post-secondary co-op education program are eligible for the tax credit.

Claiming the credit

Corporations may claim the tax credit on Schedule 550 and file it with their T2 Corporation Income Tax Return.

 

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

 

 

Learn more about the Ontario Co-operative Education Tax Credit on the Ontario Government website

 

Additional Tax Credits

Ontario Innovation Tax Credit

Qualifying corporations can claim a refundable tax credit for qualified expenditures on scientific research and experimental development performed in Ontario, including the expenses associated with hiring a co-op student. 

Amount

8 - 10% refundable tax credit, up to $240,000 - $300,000 per year

Eligibility 

A corporation can claim the tax credit, if the corporation:

  • has a permanent establishment in Ontario
  • carries out scientific research and experimental development in Ontario during the year
  • is eligible to claim the federal investment tax credit under section 127 of the federal Income Tax Act (Canada)
  • is not exempt from corporation income tax
  • has filed a scientific research and experimental development expenditures claim on federal form T661 for the tax year

Claiming the credit

Corporations may claim the tax credit on Schedule 566 and file it with their T2 corporation income tax return.

 

 

Visit the Government of Ontario website for more information 

Ontario Film and Television Tax Credit

The Ontario Film and Television Tax Credit is a refundable tax credit based on the qualifying labour expenditures incurred by a qualifying production company for eligible Ontario productions.

Amount

Get 35-40% tax credits for qualifying labour expenses, including co-op student salaries. The credit amount varies based on production type: first-time, small first-time, or other.

Eligibility 

You can get a certificate of eligibility from Ontario Creates. To be eligible for the credit, a corporation must meet certain criteria, including all of the following:

  • be a Canadian-controlled corporation throughout the tax year as determined under sections 26 to 28 of the Investment Canada Act
  • have a permanent establishment in Ontario throughout the tax year
  • be primarily engaged in the carrying on of a Canadian film or video production business through a permanent establishment in Canada in the tax year
  • not be exempt from tax under Part III of the Taxation Act, 2007 (Ontario) or Part I of the federal Income Tax Act for the tax year
  • not be controlled, at any time in the tax year, directly or indirectly, in any way, by one or more persons, all or part of whose taxable income was exempt from tax under Part I of the federal Income Tax Act
  • not be a prescribed labour-sponsored venture capital corporation at any time in the tax year

 

 

Claiming the credit

Visit the Canadian Government website to find more information on claiming the credit

 

 

Visit the Government of Canada website for more information

Photo of a design student posing at their desk during a co-op term
A co-op student working at TLC landscaping site

PROGRAMS TO SUPPORT HIRING STUDENTS

Student Work Placement Program

The Student Work Placement Program gives post-secondary students across Canada paid work experience related to their field of study. A variety of funding opportunities are available for businesses to hire students. This funding is administered by Employment and Social Development Canada (ESDC). Student work placements can include, but are not be limited to, mentorship programs, co-op education placements, practicums and internships. 

Wage Subsidies 

Employers can apply for wage subsidies to help offset the cost of hiring post-secondary students through the student work placement program. 

 

Funding available 

Up to $5,000 for every student you hire through the program 

 

Up to $7,000 for every student you hire who is in their first year or is from an under-represented group: 

  • Women in STEM
  • Person with disabilities
  • Newcomers
  • Indigenous students 
  • Visible minorities

Application Process

Funding for wage subsidies are provided through a number of different delivery partners. Each delivery partner has their own internal application system. See partners below.

 

Apply for wage subsidies

Visit the Canadian Government website to find an up-to-date list of funding sources. Employers will apply directly to these funding sources. 

Summer Funding Opportunities 

Canada Summer Jobs Wage Subsidies

Canada summer jobs is a federally administered program that helps businesses hire young people during the summer months while businesses can take advantage of wage subsidies. 

 

Amount

Public and private sector employers can receive hiring grants up to 50% of employee minimum hourly rate. 

 

Non-profits can receive grant up to 100% of minimum wage. 

 

The amount is capped at $300,000 per employer

Eligibility

To be eligible, a business must hire a youth: 

  • Between the ages of 15-30
  • Who is a Canadian citizen or permanent resident 
  • With a valid Social Insurance Number 

How to apply 

Information on applying can be found on the Government of Canada website

 

Learn more about this wage subsidiary on the Government of Canada website

 

Young Canada Works in Heritage Organizations

Young Canada Works in Heritage Organizations (YCWHO) is an employment program where eligible employers can benefit from wage subsidies to access a pool of talented youth. 

 

Employer Eligibility 

An organization may be eligible for funding if it is:

 

  • an incorporated, non-profit organization in Canada with a heritage mandate such as a museum, archives, a library, or an organization managing built heritage (heritage site);
  • an educational or cultural institution that has distinct objectives, programs and a budget related to heritage;
  • a non-profit organization under a provincial, territorial, regional or municipal government, that has distinct objectives, programs and a budget related to heritage;
  • a professional heritage service organization;
  • an Indigenous regional government or governing body (band or tribal council) and/or Indigenous organization with a mandate to preserve and support Indigenous heritage (First Nations, Inuit and Métis); and
  • stable and financially healthy.

 

 

How to apply

Application information can be found on the Government of Canada website

 

Young Canada Works in Both Official Languages

Young Canada Works in Both Official Languages (YCWBOL) is a short-term job program where eligible employers may benefit from salary subsidies to access a pool of talented youth. 

 

Eligibility

An organization may be eligible if it is:

 

  • a private, public, non-profit organization, or a municipality;
  • incorporated;
  • involved in national, provincial, territorial, municipal or community activities;
  • conducting activities in both official languages; and
  • stable and financially healthy.

 

How to apply

Application information can be found on the Government of Canada website

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