BUDGET 2012: CO-OP EDUCATION AND APPRENTICESHIP TAX CREDITS

•To enhance support for hiring apprentices and journeypersons, particularly early-level apprentices outside Winnipeg, three apprenticeship components of the Co-op Education and Apprenticeship Tax Credits will be enhanced.

­The Early-level Apprentice Hiring Incentive (currently 10 per cent of wages and salaries up to a maximum $2,000 per year per apprentice) will be enhanced to 15 per cent of wages and salaries up to a maximum of $3,000. This component of the program will also be expanded to cover employers eligible for the federal Apprenticeship Job Creation Tax Credit, who receive a top-up to be treated consistently with other Manitoba tax credit recipients.

­The Advanced-level Apprentice Hiring Incentive (currently five per cent of wages and salaries up to a maximum of $2,500 per level per employee) will be doubled to
10 per cent of wages and salaries up to a maximum of $5,000.

­The Journeypersons Hiring Incentive (currently five per cent of wages and salaries up to a maximum of $2,500 per year per employee) will also be doubled to 10 per cent of wages and salaries up to a maximum of $5,000.

  • These enhancements will be available to employers of apprentices who complete a level after 2012 and employers of journeypersons who become newly certified after 2012. The tax credit will be calculated based on wages and salaries paid to qualified employees, net of any support from government or a public authority.

•The enhancements are part of a new, more comprehensive government initiative to support apprenticeship, which includes a Rural and Northern Apprenticeship Training Strategy. Under this strategy, an additional five per cent tax credit will be available for employers who hire early-level apprentices who normally reside outside of Winnipeg and who normally report to an employer’s office in rural and northern Manitoba.

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Improvements to Apprenticeships and Journeyperson Tax Credits

Level 1 and 2 Apprentices / Level 3, 4 and 5 Apprentices / Newly Certified Journeypeople
Current Tax Credit / 10 per cent / Five per cent / Five per cent
Maximum Credit / $2,000 / $2,500 / $2,500
Budget 2012 Winnipeg Tax Credit / 15 per cent / 10 per cent / 10 per cent
Maximum Credit / $3,000 / $5,000 / $5,000
Rural/Northern Tax Credit / 20 per cent / 10 per cent / 10 per cent
Maximum Credit / $4,000 / $5,000 / $5,000

•All components of the tax credit are fully refundable. Eligible employers include taxable corporations or exempt corporate entities including not-for-profit agencies, Manitoba Crown entities, municipalities, universities, schools, and hospitals. Unincorporated employers may claim the refundable credit on their individual income tax return.

•The estimated full-year tax savings to employers from these enhancements is $8 million.

For more information, contact:

Manitoba Tax Assistance Office

809-386 Broadway

Winnipeg, MB R3C 3R6

Fax: 204-948-2263

Phone: 204-948-2115 or 1-800-782-0771 (toll-free in Manitoba)

E-mail:

Website:

ONLINE APPRENTICESHIP SERVICES

•In partnership with several other government programs, Apprenticeship Manitoba continues to work on electronic processes to provide online services to clients using

•AccessManitoba currently provides access to online apprenticeship applications and payment including the apprenticeship application, trades qualification application, and authorization to practise; technical training course registration and payment; ability for employers to record apprentice hours worked and capability for Apprenticeship Manitoba clients to update contact information.

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•The first phase of AccessManitoba was launched in June 2011. The second phase was launched in November 2011.

•In 2009, Apprenticeship Manitoba initiated work on distributed learning technologies to support the technical training portion of apprenticeship. This project is known as
e-Apprentice, which applies distance education technologies to support apprenticeship technical training.

•The following courses were developed for the 2011-12 academic year: electrician,water and waste-water technician, heavy-duty equipment technician, truck and transport mechanic, agriculture equipment technician, common core math/science, and common core communications.

•Additionally, in the 2012-13 and 2013-14 academic years, the following courses are being developed: plumber,refrigeration and air-conditioning mechanic (residential and commercial), automotive service technician, industrial mechanic (millwright) and carpenter.

•E-Apprentice enables apprentices in rural and northern communities to stay in their community and on thejob. The delivery of accredited training through e-Apprentice is anticipated to be a key component of the Skills Build Program for youth. This program will allow for additional accredited vocational programming in schools for youth living in rural and northern regions.

•For more information, visit

MOBILE TRAINING LABS

•In partnership with Red River College, the purpose of the mobile training labs is to provide nationallyrecognized trade training to rural and northern Manitobans.

•The two 53-foot portable labs have pop-out sides that transform the trailers into
950-square-ft. labs.

•Budget 2012 has dedicated $400,000 to using mobile training labs for the Rural and Northern Apprenticeship Training Strategy.

•These labs can be used to increase accessibility for students and link technical training opportunities with community-based projects and emerging industries.

•The labs provide the opportunity for rural and northern Manitobans to access technical training without having to leave their communities. This benefits the apprentice, industry and the growth of Manitoba’s economy.

•Apprenticeship Manitoba recognizes that when apprentices have an opportunity to learn in their communities, the economic sustainability of these communities is strengthened.