As an incentive to encourage young people to enrol in apprenticeship training programs, the federal government provides the Apprenticeship Incentive Grant which provides $1,000 cash per year to registered apprentices who have completed their first or second year in a designated Red Seal
trade program, on or after January 1, 2007. This grant, which was intended to offset the cost of tuition, travel and tools is considered to be employment income and will be reported on at T4 slip for the year in which the grant is received.
The province of British Columbia provides additional incentives through the income tax return. The BC Training Tax Credit
- for Apprentices
provides refundable tax credits for both the apprentices and their employers. For apprentices in non-Red Seal programs the credit is $1,000 for completion of level 1 and 2 of the program, $2,000 for completion of level 3 and $2,500 for completion of level 4 or higher. Enhanced grants are available for First Nations individuals and persons with disabilities. For apprentices in Red Seal programs, no grant is available for completion of the first two levels, but grants for completion of levels 3 and above are the same as for non-Red Seal programs.