The Co-operative Education Tax Credit (CETC) is a refundable tax credit that is available to employers who hire students enrolled in a co-operative education program at an Ontario university or college.
The CETC is a refundable credit of 25% (30% for small business) up to a maximum of $3,000. Most work placements are for a minimum employment period of 10 weeks up to a maximum of four months.
The CETC is based on salaries and wages paid to a student in a co-operative education work placement. Fees paid or payable to an employment agency for the work placement for services of a student carried out are also eligible.
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. To qualify, a work placement must involve a student who is enrolled at an eligible educational institution and performs employment duties for an eligible employer under a qualifying co-operative education program that is offered by their school. The work placement must meet the following conditions:
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