Co-op Tax Credit

To help offset the cost to employers when hiring co-op students, the Ontario government provides a refundable tax credit for hiring students enrolled in a recognized post-secondary co-operative education program.

Commonly Asked Questions

The eligible employer's total tax credit for the taxation year is equal to the sum of the tax credits for each qualifying co-op work placement. Co-op employers will be sent a tax receipt once the student has completed their co-op work term.

How do I claim the tax credit?

Eligible employers will claim the tax credit on their Ontario income tax returns. Corporations will claim the tax credit on the CT-23 or CT-8 return. Employers operating unincorporated businesses will claim the tax credit on the Ontario Tax Credits for T-1C(ONT) included in their personal income tax return. The tax credit will be available to businesses in the taxation year in which the qualifying co-op placement ends. 

Who is an eligible employer for the purposes of this tax credit?

An eligible employer includes all Ontario corporations or unincorporated businesses with permanent establishments in Ontario, subject to Ontario corporate income tax, or Ontario personal income tax. 

What students are eligible for the purposes of this tax credit?

Any student who is participating in the Western Engineering Internship or Summer Engineering Co-op program in Ontario meets the requirements. Please contact Engineering Career Services for more information.

For more information, please visit the Ministry of Revenue website.