Manitoba paid work experience tax credit

The Manitoba paid work experience tax credit includes the following:

• youth work experience hiring incentive (25%, maximum $5,000), effective for eligible salary and wages earned after September 1, 2015
• co-op student hiring incentive (15%, lifetime maximum $5,000)
• co-op graduate hiring incentive (15%, maximum $2,500)
• apprentice hiring incentive (15%, 20% for rural or northern early level, 25% for high school, maximum $5,000)
• journeypersons hiring incentive (15%, maximum $5,000)

For rates and maximum amounts that apply to tax years ending before 2015, see the sections for each incentive below.

Employers self-assess salary and wages for qualifying employees based on the fiscal year, as long as the employee is progressing through their co-op or apprenticeship program.

The credit is fully refundable, but it must first be applied against total taxes payable.

A corporation that is exempt under section 149 of the federal Income Tax Act is also eligible to claim this credit. Along with Schedule 384, the exempt corporation will also have to complete Schedule 5, Tax Calculation Supplementary – Corporations, and file a T2 Corporation Income Tax Return.

Youth work experience hiring incentive

Beginning September 1, 2015, you can claim this credit if you have been approved by the Province to provide paid work experience to an individual who has completed an approved high school course or training program.

The credit is equal to 25% of the eligible salary and wages paid to a qualifying youth, less government assistance, after September 1, 2015, up to a lifetime maximum of $5,000 per youth.

The eligible employment period of the youth must be completed by the end of the calendar year following the academic year that the youth completed the approved course.

Co-op student hiring incentive

You can claim this credit if you are an employer who provides a work placement for a student enrolled in a qualifying post-secondary co-operative education program.

The credit for each qualifying work placement is 15% of the salary and wages paid to the employee for work performed mainly in Manitoba, to a lifetime maximum of $5,000 per student, less government assistance.

For tax years ending before 2016, the credit for each qualifying work placement is the lesser of:

• $1000
• 10% of the salary and wages paid to the employee for work performed mainly in Manitoba, less government assistance

The credit will be nil if the student under the work placement has had five previous qualifying work placements.

The credit is fully refundable, but must first be applied against total taxes payable.

For work placements that ended before March 7, 2006, the credit was non-refundable. Any remaining credit that has not expired can be carried forward 10 tax years that follow the tax year in which you earned the credit. Unused credits may be carried forward on amalgamation or wind-up. On line 603 of Schedule 5, enter the amount of the non‑refundable credit you are carrying forward to the current year.

Co-op graduate hiring incentive

You can claim this credit if you are an employer that has hired co-op graduates in full time employment in Manitoba. The students must have graduated from a recognized post-secondary co-operative education program in a field related to the employment.

The credit is equal to 15% of the net salary and wages paid to the graduate, less government assistance, in each of the first two full years of employment, to a maximum of $2,500 for each year, where the employment starts within 18 months of graduation.

For tax years ending before 2016, the rate is 5%.

Apprentice hiring incentive

The apprentice hiring incentive is enhanced so that the benefit for high school and post-secondary apprentices in Manitoba.

The maximum amount of the credit is $5,000 per apprentice per year. The rate of salary and wages is:

• 15%
• 20% for employers of apprentices who normally reside outside of Winnipeg and who normally report to an employer’s office in rural and northern Manitoba
• 25% for employers of high school apprentices for tax years ending after 2015

For employers of apprentices who complete a level 1 or 2 after 2012 and before 2015, the maximum amount of the credit is equal to:

• $3,000
• $4,000 for rural and northern regions

This component of the credit also covers employers eligible for the federal apprenticeship job creation tax credit, who will receive a top-up that is equal to the difference between this provincial credit and the federal credit.

For employers of apprentices who complete a level 3, 4, or 5 after 2012 and before 2015, the rate is 10%.

Journeypersons hiring incentive

You can claim this credit if you are an employer that has hired recent graduates of apprenticeship programs in full time employment in Manitoba. The journeyperson must have received their certificate of qualification in Canada in a field related to the employment.

The credit is equal to 15% of salary and wages paid to the journeyperson, less government assistance, in each of the first two full years of employment, up to a maximum of $5,000 for each year, where the employment starts within 18 months of certification.

For employers of journeypersons who become newly certified after 2012 and before 2015, the rate of the credit is 10%.

Employment periods must be continuous and consecutive, but an employment period may be interrupted by a seasonal layoff of not more than three months.

Claiming the credit

File a completed Schedule 384, Manitoba Paid Work Experience Tax Credit, with the return. For more details, see the schedule.

Enter the amount of the refundable credit you are claiming on line 622 of Schedule 5, Tax Calculation Supplementary – Corporations.

Enter the amount of the non-refundable credit you are claiming on line 603 of Schedule 5.

Forms and publications

• Schedule 384, Manitoba Paid Work Experience Tax Credit
• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• Manitoba (provincial site)

Date modified:

2017-04-26