British Columbia shipbuilding and ship repair industry tax credit

You can claim a refundable tax credit if you are an eligible employer in the British Columbia shipbuilding and ship repair industry and you paid salary or wages to an employee who was registered in a prescribed program administered through the BC Industry Training Authority.

The British Columbia shipbuilding and ship repair industry tax credit is available for salary and wages paid after September 30, 2012. It applies to Red Seal and non-Red Seal programs.

You can claim one or more of the following three credits in the year for each qualified employee:

• the basic tax credit for employees within 24 months after the employee entered into an industry training agreement (20%, maximum $5,250)
• the completion tax credit when an employee completes level three or four of an eligible program (20%, maximum $5,250)
• the enhanced tax credit for employees who are registered as Indians under the Indian Act or who qualify for the disability amount on their income tax return (all levels of an eligible program) (30%, maximum $7,875)

For each of the basic and completion tax credits, the credit is equal to 20% of the salary and wages (net of designated assistance) that were paid to an employee, up to a maximum of $5,250 per employee per tax year.

These numbers are increased by half when they apply to the enhanced tax credit. This credit is equal to 30% of the salary and wages (net of designated assistance) that were paid to an employee, up to a maximum of $7,875 per employee per tax year.

For the completion and enhanced tax credits, the salary and wages can be dually applied to overlapping periods when more than one level is completed during the tax year.

You cannot claim the British Columbia training tax credit if you claim the shipbuilding and ship repair industry tax credit in the tax year, except if your tax year straddles October 1, 2012.

Special calculations apply to a tax year that includes October 1, 2012. An employer can claim the British Columbia training tax credit for salary and wages paid before October 1, 2012 and must claim its maximum credit amount under the British Columbia training tax credit. The employer can also claim the British Columbia shipbuilding and ship repair industry tax credit for salary and wages paid after September 30, 2012. However, the total amount claimed under the two credits must not be more than $5,250 per employee ($7,875 per employee if eligible for the enhanced tax credit) for the tax year.

These credits extend to partnerships. Corporations that are members of a partnership, other than specified members (such as limited partners), can each claim their share of the partnership’s tax credit.

Special rules apply for employers not dealing at arm’s length who wish to claim the training tax credit for the same employee. For more details about these rules, see section 126.5 of the British Columbia Income Tax Act.

For more information about the credit, see part 9 of the British Columbia Income Tax Act.

Claiming the credit

File a completed Schedule 430, British Columbia shipbuilding and ship repair industry tax credit, with your return.

You must claim these credits no later than 36 months after the end of the tax year in which you paid the eligible salaries and wages.

On line 681 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the total amount of the credits you are claiming.

Forms and publications

• Schedule 430, British Columbia shipbuilding and ship repair industry tax credit
• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• British Columbia (provincial site)

Date modified:

2017-04-20