In this article, you will learn about the most current financial grants and tax credits available for apprentice electricians in Canada.
Do not take these grants and tax credits lightly – this is literally FREE MONEY as a reward for entering your apprenticeship, completing your electrical apprenticeship, and receiving your Read Seal!
Note, these grants are usually only available to recognized Red Seal Trades.
I will be talking about the “Construction Electrician” career choice which is one of the the Red Seal program designations.
Website Links for Apprenticeship Grants:
Please read the article below, and reference these links after:
- Canada Apprenticeship Grants (Federal)
- Provincial Example of Additional Grants (Provincial)
- Grants for Electrician Women in Trades (Canada)
I have written this to save you time, and try to claim as much grant and tax credit money as possible for construction apprentice electricians.
Taxation of Grants vs. Tax Credit
Disclaimer, I am not an accountant.. so please seek legal advice!
However, a Grant is typically when you are PAID the money, and it goes into your bank account. You will have to pay tax on this.
A Tax Credit is NOT PAID to you, you simply reduce the that tax credit off the amount of taxes you owe (this is typically a much better deal for you!).
This is important to know as Level 1 and Level 2 pay a GRANT (paid to you), and Level 3 + Level 4 (in British Columbia) offer a TAX CREDIT!
What Grants are Available for Electricians in Canada?
There are FEDERAL and PROVINCIAL financial grants.
Federal means through the government of Canada (which should be the same for all provinces), Provincial means directly through your province (which can differ from province to province!)
Federal Grants for Apprentice Electricians (Level 1 + Level 2):
Notice the word GRANT here.
When you complete Level 1, there is a $1000 Federal grant available to you!
When you complete Level 2, there is an additional $1000 Federal grant!
This is called the Apprenticeship Incentive Grant (AIG).
The AIG is a taxable cash grant of $1,000 per year, for a lifetime maximum amount of $2,000 per person. You have to claim this as income for tax purposes!
Provincial Grants for Apprentice Electricians (Level 3 + Level 4):
Each province is different, and may offer additional grants and tax credits IN ADDITION to the Level 1 and Level 2 Apprenticeship Incentive Grant.
Do your own research by searching:
“Apprenticeship Grants in BC”.. or “Apprenticeship Grants in Alberta”.. or “Apprenticeship Grants in Ontario”.. (you get the point).
For example, your province may offer a Apprenticeship Tool Credit to reduce the cost of buying new tools.
Another example.. In British Columbia, they offer very large Level 3 and Level 4 tax credits! (View BC’s Training Tax Credits for Electricians Page).
You will see for Level 1 and Level 2, they are Federal. For Level 3 and Level 4 under “Red Seal”, Level 3 is $2000, and Level 4, is $2500!!!!!! (Yes, that’s $4500 if you pass Level 3 and Level 4).
This is a TAX CREDIT, meaning you reduce your taxes by that amount!
Ask the College secretary, search your Province’s website, and call around for additional grants. You will be surprised!
Apprenticeship Completion Grant (ACG)
This is a FEDERAL grant of $2,000 when you complete your apprenticeship!
Once you pass your trade schooling, and receive your Red Seal, you are eligible for a $2000 completion taxable cash grant!
This is known as the Apprenticeship Completion Grant (ACG).
Women in Trades (Canada Grant)
If you are a women apprentice electrician, Canada recently announced the Apprenticeship Incentive Grant for Women (AIG-W).
Note, this is the same as the Apprenticeship Incentive Grant (AIG), but with the -W designation. I do not believe you can claim both.
The AIG-W is a taxable cash grant of $3,000 per year/level (or equivalent) up to a maximum amount of $6,000 per person.
You go girl! 😂
Further Research for Apprentice Electrician Tax Write-Offs
In addition to the Apprenticeship Incentive Grant (AIG) and Apprenticeship Completion Grant (ACG) above, you can also write-off some other items on your taxes for those years you went to school.
That can be your tuition, books, and exam fees.
Definitely bring this to your accountant’s attention before they do your taxes. All of these small wins significantly help you during your apprenticeship years!
For more info on what you can deduct, visit the Canada webpage:
Tax deductions and credits for apprentices and tradespersons.
I hope this helps you save some money. Feel free to comment below if I have missed any other additional grants and tax credits available for electricians in Canada.
Also, you are able to apply for interest free loans, but I am just sharing grants and tax credits in this article. You can find all information on the links at the top of this page in regards to student loans for apprentices, grants, and taxes. (Except for any special provincial grants.. you will have to find those out yourself.. as you saw my BC example of $4,500 tax credit is phenomenal!)