Tax Credits and Funding

Co-operative Education Tax Credit

These are intended as guidelines only and are not intended to replace the current tax legislation.

  • 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.

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.

Funding Support for Employers

Additional funding support may be provided by the following:

NSERC (Natural Sciences and Engineering Research Council)
Undergraduate Student Research Awards (USRA) Program
Scholarships and Fellowships
350 Albert Street
Ottawa, ON K1A 1H5

IRAP (Industrial Research Assistance Program)
National Research Council
200 Town Centre Court, Suite 1101
Scarborough, ON M1P 4X8
Tel. 416-973-4484 or 1-877-994-4727

Your local Human Resources and Skills Development Canada Centre
Canada-Ontario Business Service Centre
Tel. 416-775-3456 or 1-800-567-2345