When you hire a student enrolled in a co-operative education program, there are a number of tax credits that you can take advantage of.
We make it easy by providing all employers with a letter from the University and the tax receipts that you need to submit when filing your taxes.
Ontario Co-operative Education Tax Credit
available in Ontario
| Amount: |
Large corporations can claim 25% of expenditures, up to $3,000, while small businesses can claim 30% of expenditures up to $3,000, per eligible work placement. This tax credit is available for each work placement. Each work placement needs to be a minimum of 10 weeks and maximum of 4 months with no cap on the amount of eligible work placements an employer submits. Employers may have multiple work placements which take place at the same time and throughout the year (I.e. if an organization decides to hire for an eight-month work term, or two students for four-month work terms, both would be considered as two work placements and would be eligible for a total tax credit of up to $6,000). |
|---|---|
| Who can apply (eligibility): | Any Ontario employer hiring students from a post-secondary co-op program |
| How to apply: |
Corporations claim the tax credit on Schedule 550 of their T2 corporation income tax return. Unincorporated businesses claim the credit on Form ON479 in their personal tax return. Learn more about the forms you need to submit on the Government of Ontario Co-operative Education tax credit website. |
| Application due date: | Tax season each year |
Scientific Research and Experimental Development (SR&ED) Tax Credit
available across Canada
| Amount: | 15 to 35% tax credits for eligible expenditures, which may include the salaries of co-op students |
|---|---|
| Who can apply (eligibility): | Canadian businesses of all sizes and in all sectors who complete research and development in Canada. This includes basic research, applied research and experiential development. |
| How to apply: |
Corporations claim the tax credit on Schedule 508 and file it with their T2 corporation income tax return. Learn more about the forms you need to submit on the Government of Canada SR&ED tax credits website. |
| Application due date: | Tax season each year |
