Shipbuilding and Ship Repair Industry Tax Credit

Government of British Columbia · This is a refundable tax credit for eligible employers in British Columbia's shipbuilding and ship repair industry who employ registered apprentices.

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Overview

This is a refundable tax credit for eligible employers in British Columbia's shipbuilding and ship repair industry who employ registered apprentices. Employers can claim 20% of apprentice wages (up to $5,250) as a basic credit in the first 24 months of apprenticeship, a completion credit when the apprentice completes certain training levels, and an enhanced credit of up to $2,625 for apprentices who are First Nations individuals or persons with disabilities.

Eligibility

Employer's principal business must be constructing, repairing or converting shipsEmployee must be registered as an apprentice with SkilledTradesBC and enrolled in an eligible apprenticeship programApprentices must be in Red Seal or non-Red Seal eligible programsEnhanced credit available for First Nations individuals (registered under Indian Act) or persons with disabilities (qualifying for federal disability tax credit)

Eligible projects

Salary and wages paid to apprentices in the first 24 months of apprenticeship (basic credit)Salary and wages paid to apprentices in the 12-month period prior to completing training level 3 or 4 (completion credit)Enhanced credits for apprentices who are First Nations individuals or persons with disabilities

Financing terms

Tax credit is refundable but must first be applied against total income tax payableBasic and enhanced basic credits must be claimed within 36 months of the end of the tax year in which wages were paidCompletion and enhanced completion credits must be claimed within 36 months of the tax year in which the employee completed the training levelCorporations claim using Schedule 430 of the T2 return; individuals claim using form T1014-2

How to apply

1Check eligibilityConfirm you meet every criterion listed above before you start.

2Prepare the project packageProject description, budget with quotes, team, and recent financial statements.

3Apply on www2.gov.bc.caGovgrant members can draft the application with AI and export a formatted PDF.

4Respond to reviewer questionsMost programs come back with one round of questions within a few weeks of submission.

Additional information

Ships are defined as sea-going vessels propelled by engine, excluding vessels for personal or recreational useIf employers do not qualify for this credit, they may be eligible for the training tax creditCompletion credit covers enhanced amounts of up to $2,625 for eligible demographics

At a glanceMaximum$5KProviderGovernment of British ColumbiaDeadlineDec 31, 2027StatusOpenRegionBritish ColumbiaOfficial sourcewww2.gov.bc.ca ↗

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