Paid Work Experience Tax Credits (MB)

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Summary

The Paid Work Experience Tax Credits (PWETC), formerly known as the Co-op Education and Apprenticeship Tax Credits, is a group of programs that provide incentives to employers who offer work experiences to qualified students, graduates, apprentices and recently certified journeypersons. There is no limit on the number of employees hired.

All components of this program are refundable tax credits, claimed on the employer’s tax return, available to those who hire:

  • Youth Work Experience high school students;
  • Co-op students for work placements as part of a recognized college or university program;
  • recent graduates of co-op education programs;
  • Apprentices (including high school apprentices); and
  • recently certified journeypersons.

Manitoba Budget 2015 announced a new stream for youth and rate enhancements for employers with financial years ending after 2015, including:

  • starting September 1, 2015, a new Youth Work Experience Hiring Incentive providing 25% of eligible wages and salaries, up to a lifetime maximum of $5,000 per student for employers who hire high school students who have completed a range of registered high school vocational programs that are not connected with the apprenticeship system;
  • starting for tax years that end in 2016 or later;
  • the rate of support for post-secondary co-op students will be enhanced to 15% from 10% of wages and salaries up to a lifetime maximum of $5,000 per student;
  • the rate of support for post-secondary co-op graduates will be enhanced to 15% from 5% of wages and salaries up to a maximum of $2,500 per graduate per year for the first two years of employment after graduation; and
  • the rate of support for high school apprentices will be enhanced to 25% from 15% of wages and salaries up to a maximum of $5,000 per student per year.

Eligibility

  • Work must be performed primarily in Manitoba;
  • The employer must reside in or have a permanent establishment in Manitoba;
  • Employer wage costs do not include other government assistance; and
  • Eligible employers include taxable corporations or exempt corporate entities. For the 2017 and subsequent tax years, Crown corporations and other provincial government entities are not eligible for this credit. Unincorporated employers may claim the refundable credit on the individual income tax return.

Hiring Incentives

  • Youth Work Experience Hiring Incentive – This incentive is 25 percent of wages and salaries paid, to a lifetime maximum of $5,000 per student.
    • The qualifying youth must have completed an approved youth work experience training program;
    • The employer must be registered to hire students under the program; and
    • Employers of eligible youth will be eligible for a refundable tax credit on salaries and wages earned by the student after September 1, 2015.
  • Co-op Student Hiring Incentive – This incentive is 15 percent of wages paid , to a lifetime maximum of $5,000 per student, for the placement of post-secondary co-op program students (10 percent of wages paid up to $1,000 per placement for tax years ending in 2015 or earlier).
    • The work placement must be for a term of at least 10 consecutive weeks;
    • The student must be employed on a full time basis (at least 35 hours a week);
    • The work must be performed primarily in Manitoba;
    • The work performed must be related to the student’s co-operative education program;
    • There is no limit to the number of co-op students for any one employer but the program is limited to five work placements per student or once the $5,000 maximum is reached for that student;
    • The co-operative education program must be registered with the Advanced Learning and Education; and
    • Other government assistance received or receivable is subtracted from the eligible wages paid.
  • ­ Co-op Graduate Hiring Incentive – This incentive is for employers of co-op education graduates who complete each of the first two years of employment.  The funding assistance is 15 percent of wages paid to a maximum of $2,500 per year (5 percent of wages paid for tax years ending in 2015 or earlier).
    • The graduate is employed in a permanent position on a full time basis (at least 35 hours a week);
    • The work must be performed primarily in Manitoba;
    • The work performed is closely related to the graduate's co-operative education program;
    • The first employment period must begin within 18 months of graduation and the second period begins immediately after the first;
    • The graduate is a resident of Manitoba;
    • There is a limit of two, one-year terms per co-op graduate; and
    • The wages and salaries paid are reduced by any government assistance received or receivable.
  • High-School Apprentice - This incentive is for employers who hire high school apprentices.  The incentive pays 25 percent of wages paid to a maximum of $5,000 per apprentice per year (15 percent of wages paid for tax years ending in 2015 or earlier.
    • The work placement must qualify for credit of practical experience toward a level 1 apprenticeship; and
    • The apprentice must be employed on a full time basis (at least 35 hours a week).
  • Early-Level Rural /Northern Apprentice Hiring Incentive – This incentive is for employers who hire Early-Level apprentices.  The incentive pays 20 percent of wages and salaries paid, with an increased cap of $5,000 per apprentice per year.
    • Employment must take place outside of Winnipeg but the work must be performed primarily in Manitoba;
    • The work placement must qualify for credit of practical experience toward a level 1 or level 2 apprenticeship;
    • The apprentice must be employed on a full time basis (at least 35 hours a week);
    • Corporate employments of Red-Seal/Interprovincial trades are currently eligible to receive the federal Apprenticeship Job Creation Tax Credit at 10 percent to a maximum of $2,000.  The Early-Level Rural / Northern Apprentice Hiring Incentive will receive a top-up to a maximum amount of $3,000 to the higher Manitoba benefit; and
    • Early-Level Provincial Trades are not eligible for the federal Apprenticeship Job Creation tax Credit and, as such, will receive the full 20 percent to a maximum of $5,000, per employee per year.
  • Apprentice Hiring Incentive – This incentive is for employers who hire apprentices who are not an eligible High-School Apprentice  or Early-Level Rural /Northern Apprentice incentives.  The incentive is 15 percent of wages and salaries paid, up to a maximum of $5,000, per apprentice per year.
    • ­ The apprentice must be employed on a full time basis (at least 35 hours a week); and
    • ­ The work performed must be related to the apprentice program.
  • Journeyperson Hiring Incentive – This incentive is for employers of newly certified journeypersons who complete each of the first two years of employment on or after January 1, 2013.  The incentive is 15 percent of wages paid to a maximum of $5,000 per journeyperson per year, for the first two years of employment from date of certification.
    • The journeyperson must be employed in a permanent position on a full time basis (at least 35 hours a week);
    • The work performed must be related to the apprentice program;
    • Work is being performed primarily in Manitoba;
    • The Journeyperson is a resident of Manitoba; and
    • The employer’s first qualifying period of employment of the journeyperson began 18 months after the journeyperson became a qualifying journeyperson.

Contact

Manitoba Tax Assistance Office
809 – 386 Broadway
Winnipeg, Manitoba R3C 3R6
Phone: 204-948-2115
Toll free: 1-800-782-0771
Email: tao@gov.mb.ca
Website: www.gov.mb.ca/finance/tao

Apprenticeship Manitoba
1010 – 401 York Avenue
Winnipeg, Manitoba R3C 0P8
Phone: 204-945-3337
Toll free: 1-877-978-7233
Fax: 204-948-2539
Email: apprenticeship@gov.mb.ca
Website: www.gov.mb.ca/wdis/apprenticeship/

Advanced Learning Division
608 – 330 Portage Avenue
Winnipeg, Manitoba R3C 0C4
Phone: 204-945-1833
Fax: 204-945-1841
Email: ald@gov.mb.ca
Website: www.edu.gov.mb.ca/ald/tax_credit/index.html

Technical Vocational Education Manitoba
Phone: 204-945-0151
Email: TVE@gov.mb.ca