Tax Credits for Practicums in the Workplace

Overview of the Tax Credits for Practicums in the Workplace program:

The program offers financial assistance in the form of a refundable tax credit for providing students with training experience.

Benefits of the Tax Credits for Practicums in the Workplace program:

• The purpose of the tax credit for practicums in the workplace is as follows:
• To ensure that vocational, technical and university training is better adapted to the growing demands of the job market
• To improve the level of students occupational competencies
• To encourage businesses to take more student trainees and facilitate the organization of practicums in the workplace
• To support the effort of businesses that contribute to the development of students competencies
• To strengthen the ties between businesses and educational institutions by putting greater emphasis on practicums in the workplace

Eligibility criteria of the Tax Credits for Practicums in the Workplace program:

• COMPANIES
• To be eligible for the tax credit, companies must meet the following conditions:
• They must be established in Quebec and operate an eligible business.
• They have been given no exemption from income tax other than the five-year tax holiday granted to new companies, or the tax holiday granted to small and medium-sized manufacturing businesses in remote resource regions.
• The company may also be a member of a partnership. In such a case, the first two criteria listed above apply to the company, and the eligible expenses correspond to its share (determined on the basis of the distribution of profits) of the eligible expenses incurred by the partnership.
• INDIVIDUALS
• To be eligible for the tax credit, individuals must meet the following conditions:
• They must operate a business in Quebec.
• When the individual is a member of a partnership, his or her eligible expenses correspond to the share (determined on the basis of the distribution of profits) of eligible expenses incurred by the company.
• Eligible individuals who own a business or who are members of a partnership may supervise a trainee. However, an individual may claim a tax credit for the supervision only if a salaried employee of the business acts as the supervisor.