Human Resources and Skills Development Canada
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Trades and Apprenticeship
Apprenticeship Grants
The Apprenticeship Grant Programs provide taxable cash grants to apprentices registered in one of the designated Red Seal trades.
Apprenticeship Incentive Grant (AIG) – a $1,000 taxable cash grant available to apprentices registered in one of the designated Red Seal trades who complete their first or second year/level of an apprenticeship program in a designated Red Seal trade, to a maximum of $2,000.
Apprenticeship Completion Grant (ACG) – a $2,000 taxable cash grant available to apprentices who complete their apprenticeship program and receive their journeyperson certification in a designated Red Seal trade.
Also available is the Tradesperson’s Tools Deduction that provides employed tradespersons with an annual deduction of up to $500 to help cover the cost of new tools necessary to their trade. The deduction applies to the total cost of eligible tools that exceeds $1,000.
For employers who hire apprenticeship in the designated Red Seal trade, the Apprenticeship Job Creation Tax Credit is a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices in respect of employment after May 1, 2006. The maximum credit is $2,000 per year for each eligible apprentice.
- What is Apprenticeship?
- What is an apprenticeship grant?
- How does the GoC supports skilled trades & apprenticeship?
What is Apprenticeship?
Apprenticeship is an agreement between a person (an apprentice) who wants to learn a skill and an employer who needs a skilled worker. Apprenticeship is a proven industry-based learning system that combines on-the-job experience with technical classroom training to produce a certified journeyperson. For some apprentices, especially in Quebec, the technical classroom training can be taken upfront through the secondary school system, followed by successive years of on-the-job training. Upon completion of the specified training period, apprentices receive a Certificate of Qualification. On average, 80% of the apprentice's two to five year program is spent in the workplace; the rest is spent at a training institution.
Each province and territory has the responsibility for apprenticeship training. Canada currently has 13 different apprenticeship systems, where each province and territory governs their own training and certification policies. Legislation permits provinces and territories to designate apprenticeship programs for their own requirements. Over 200 apprenticeship programs are currently available across Canada.
Other key partners are engaged in apprenticeship whereby employers and unions play an important leadership role within each jurisdiction in guiding provincial and territorial officials and providing input on training programs.
What is an apprenticeship grant?
An apprenticeship grant is a taxable grant that is given to eligible apprentices by the Government of Canada. A grant is not a loan and never needs to be repaid. Two types of grants are available to apprentices:
Apprenticeship Incentive Grant (AIG) and
Apprenticeship Completion Grant (ACG).
These grants were created to help Canadians successfully pursue apprenticeship training in the designated Red Seal trades and launch rewarding careers in the skilled trades.
How does the GoC support skilled trades & apprenticeship?
The Government of Canada recognizes skilled trades are essential to building and maintaining Canada's place in the knowledge-based economy. The federal government has a clear role in supporting interprovincial labour mobility in the skilled trades and in encouraging more Canadians to pursue apprenticeships and hence meet the growing need for skilled tradespeople that is crucial to the recovery of the economy.
The Interprovincial Standards Red Seal Program
The Government of Canada supports apprenticeship by working with the provinces and territories through the Canadian Council of Directors of Apprenticeship (CCDA), which was established more than 40 years ago. The CCDA is responsible for the administration of the Interprovincial Standards Red Seal Program 
which aims to facilitate the interprovincial mobility of skilled tradespeople by harmonizing requirements and certification in 50 different trades.
The Interprovincial Standards Red Seal Program promotes a national standard for training excellence in the skilled trades. The Red Seal is highly valued by employers, widely recognized and has enjoyed strong industry support for over 50 years. The Red Seal endorsement, awarded to certified trades workers in a Red Seal trade, is based on common interprovincial standards which allows them to work anywhere in Canada.
National Occupational Analyses (NOAs) identifies tasks performed according to the skills required in each province and territory for Red Seal trades and are used to develop Red Seal examinations. The Ellis Chart, a comparative chart of apprentice training programs across Canada, is produced by HRSDC in collaboration and consultation with the provinces and territories and provides training and certification details for all of these apprenticeable programs.
Employment Insurance
Through the Employment Insurance system, the Government of Canada provides income support to eligible apprentices during their periods of in-school technical training.
Programs Promoting Awareness of Apprenticeships and Skilled Trades
The Government of Canada also supports apprenticeship by facilitating the activities of several national organizations such as the Canadian Apprenticeship Forum (CAF) which are supported through the Sector Council program. CAF helps to promote apprenticeship and the skilled trades, sponsor high-quality research and provide a mechanism for ongoing dialogue on issues impacting apprenticeship and the skilled trades across Canada.
Apprenticeship Incentive Grant
Through Budget 2006, the Government of Canada announced major new investments to encourage apprenticeships and to support apprentices in their training. Many Canadians who wish to pursue a career in the skilled trades face financial barriers. The Government of Canada introduced the Apprenticeship Incentive Grant (AIG). The grant is available to registered apprentices who have completed their first or second year/level (or equivalent) in an apprenticeship program in a designated Red Seal trade, on or after January 1, 2007.
Apprenticeship Completion Grant
Through the Canada Economic Action Plan, introduced in Budget 2009, the Government of Canada announced the Apprenticeship Completion Grant (ACG). The ACG builds on the AIG by offering an additional one-time $2,000 taxable cash grant to eligible apprentices who successfully complete their apprenticeship training and obtain journeyperson certification in a designated Red Seal trade on or after January 1, 2009.
As a combined result of the AIG and ACG, registered apprentices who complete their apprenticeship training and obtain journeyperson certification in a designated Red Seal trade may be eligible to receive $4,000.
Following two years of implementation of the ACG, it is the federal government’s intention to make a Red Seal endorsement an eligibility requirement to receiving the ACG. Over the next two years, the Government will work with those provinces that do not use or promote the Red Seal endorsement to determine the barriers to its use and to develop solutions to overcoming any identified issues.
The AIG and the ACG complement the following tax measures, available through the Canada Revenue Agency (CRA) which help to offset the cost of tools for employed tradespeople and provide incentives for employers to hire Red Seal apprentices.
Apprenticeship Job Creation Tax Credit
The Apprenticeship Job Creation Tax Credit is a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices registered in a designated Red Seal trade in respect of employment after May 1, 2006. The maximum credit is $2,000 per year for each eligible apprentice. For detailed information, refer to Apprenticeship Job Creation Tax Credit.
Tradesperson's Tools Deduction
The Tradesperson's Tools Deduction provides employed tradespersons with an annual deduction of up to $500 to help cover the cost of new tools necessary to their trade. The deduction applies to the total cost of eligible tools in excess of $1,000. For detailed information, refer to Tradesperson's Tools Deduction.
