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.

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

For more information visit the Ministry of Revenue web site.

The Benefit

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.