Co-operative Education Tax Credit
These are intended as guidelines only and are not intended to replace the current tax legislation.
Taken from the Ministry of Revenue, Credits, Benefits & Incentives
- The
Co-operative Education Tax Credit (CETC) is a refundable tax credit
available to businesses that employ post-secondary students enrolled in
qualifying co-operative education programs at eligible educational
institutions.
- In Ontario, the Co-operative Education Tax Credit allows you to deduct 25% - 30% of salaries, wages, and benefits to a maximum of $3,000 for each qualifying work term.
- Please
note the credit has recently been increased from $1000 to $3000 and the
Ministry web site may not yet reflect the increase. The necessary
legislative amendments are contained in Schedule 28 of Bill 162, the
Budget Measures Act, 2009 (Ontario), which received Royal Assent on June
5, 2009.
Eligibility for the CETC
An eligible
employer includes all corporations or unincorporated businesses with
permanent establishments in Ontario subject to Ontario corporate income
tax or Ontario personal income tax. Members of a partnership may share
the CETC for each qualifying work placement. Limited partners are not
entitled to this credit; however, the general partners of a limited
partnership are entitled to share the credit
