For Ontario employers who are willing to help students gain valuable work experience, the Government of Ontario provides the Ontario Co-operative Education Tax Credit.
To be eligible an employer must be an Ontario-based business that hires student(s) enrolled in a post-secondary co-operative education program at an Ontario college or university.
The tax-credit amount you receive is based on the salaries and wages paid to a student in a co-operative education work placement. Corporations can claim 25 per cent of eligible expenditures (30 per cent for small businesses). The maximum credit for each work placement is $3,000. The minimum employment period is 10 weeks, up to a maximum of four months.
While you do not need to submit supporting documentation with your tax return, you must keep supporting documentation on file for a minimum of 7 years (i.e. certification letter from the student’s post-secondary institution). This documentation must include:
- Name of the student
- Name of the employer
- Name of the educational institution
- Name of the work placement
- Name/discipline of the qualifying Co-operative Education program
For the latest information or updates on claiming, visit the Ontario Co-operative Education Tax Credit page.
*Please note the Ontario Co-operative Education Tax Credit is not available to employers who employ Bachelor of Applied Business or Bachelor of Commerce (Financial Services) students in both the Financial Planning and Accounting streams for a work term.
