Another Apprentice Grant- Another Screwed Apprentice

[InspectorGadget]

From Revenue Canada:

Apprenticeship Incentive Grant (AIG)

 

The Apprenticeship Incentive Grant (AIG) is a taxable cash grant of $1,000 per year, up to a maximum of $2,000 per person, available to registered apprentices once they have successfully completed their first or second year/level (or equivalent) of an apprenticeship program in one of the Red Seal trades.

 

Apprentices should be aware that there is a deadline to apply.

 

Apprenticeship Completion Grant (ACG)

 

The Apprenticeship Completion Grant (ACG) is a $2,000 taxable cash grant designed to encourage apprentices registered in a designated Red Seal trade to complete their apprenticeship program and receive their certification. Eligibility is retroactive to January 1, 2009.

 

The completion grant will be offered to apprentices who complete their training, become certified journeymen/journeywomen in a designated Red Seal trade and who obtain either the Red Seal endorsement or a provincial or territorial Certificate of Qualification.

 

Bottom line according to the tax folks, to my understanding: Our trade is not designated red seal, therefore we are not eligible

 

From Revenue BC:

http://www.sbr.gov.bc.ca/business/Income_Taxes/ttc/

 

Training Tax Credits provide refundable income tax credits for apprentices enrolled in programs administered through the Industry Training Authority (ITA).

 

The ITA oversees British Columbia's industry training and apprenticeship system, including the administration of Red Seal (Inter-provincial) and B.C.-recognized (non-Red Seal) training programs.

 

There are three main elements to the training tax credits:

 

Basic credits for the first two levels of non-Red Seal training programs

Completion credits for level 3 or higher of both Red Seal and non-Red Seal training programs

Enhanced credits for First Nations individuals and persons with disabilities

The following chart shows the amount of the Basic and Completion (Regular) Training Tax Credits an employee can claim for each level completed.

 

*The federal government (Service Canada) offers an Apprenticeship Incentive Grant of $1,000 to apprentices for completing each of the first two levels of a Red Seal program. More information can be found here.

 

Non-Red Seal Red Seal

Level Regular Enhanced Red Seal Enhanced

Basic 1 1000 1500 Federal* 500**

Basic 2 1000 1500 Federal* 500**

Completion 3 2000 3000 2000 3000

Completion 4 or higher 2500 3750 2500 3750

 

**This amount can be claimed in addition to the federal grant.

 

An apprentice can claim more than one tax credit in a year provided the apprentice completes the requirements for each level in the year. Levels completed before January 1, 2007 are not eligible for the credits.

 

 

 

 

This is the one I claimed last year. As it references the ITA, which references AMTs which is really an AME if you know what your talking about.

http://www.itabc.ca/Page44.aspx

I will have to look at my 08 taxes to see if I claimed the federal grant.

[epage]

Sent my local MLA (Langley) an email about it. Says they are looking into it. I'll post whatever the reply is. Couple of grand sure would go a long way right now.

[RTR]

So, just a question.

 

How Many AME's consider themselves Professionals?

 

How many AME's consider themselves Tradesmen / Tradeswomen?

 

RTR

[ray]

I've always considered myself a 'tradesperson'.

 

It's what I signed up for.

 

Others may view me any way they want.

[ThreePer]

So I just got a letter from the fine folks at Canada Revenue asking for me to prove my 08 and 09 BC Training Tax Credit applicability.

 

Uggggggggggggggggg.

 

A quick call to the woman that sent it to me says I need to get a Transcript from the ITA and send it in or they will be sending me a bill for $4500!!!!! ($2000 for 08 and $2500 for when I completed my apprentiship in 09)

 

I am obviously pooping myself.

 

I called the ITA and the lady there said I need to send in a couple forms from myself and my employer and she can register.

 

Last time I called the ITA and said I was in Aircraft Maintenance the told me to pound sand but this time she said to just do the paper work and it is all good.

 

So my question (if anyone knows about this stuff) is: has something changed with the ITA?

 

I really really really hope so because if I do all the paperwork just to be told to take a hike again I am looking at a bill from our Government for much much more than I can afford.

 

And before anyone replys saying you play with fire you get burned please just helpfull info only.

 

Thanks?

[mmartin1872]

You want to see a 'real government' circle jerk... Check these emails out.

 

I started off emailing James M Flaherty Minister of Finance..

 

From: ME

Sent: To: ITBTaxQuestions SBR:EX

Subject: BC training Tax Credit

 

I'm just writing about the BC training Tax Credit Program, and how it applies to apprentices. I am wondering about the apprenticeship trade "Aircraft Maintenance Engineer M" This apprenticeship trade is under the control of Transport Canada. This apprenticeship entails schooling, on the job training, and exams, in order to be licenced in Canada as An Aircraft Maintenance Engineer. This training, licencing, and testing are all controlled by canadian government legislation (The Canadian Aviation Regulations and Standards.)

 

I.T.A. is trying to create a program called "Aircraft Maintenance Technician," and also "Aircraft Structures Technician" to try and bring apprentices into their training programs, instead of transport canadas (which is the only one that is legislated and controlled.) These programs are misleading as they do not make it so you can work on Airworthy Aircraft in Canada. In order to work on airworthy aircraft, you must do the Transport Canada approved training program, and complete there required tasks inorder to be a licenced mechanic, that can work on aircraft and deem them airworthy.

 

If I.T.A. is going to create these programs, it is only justified that the training that a mechanic takes through Transport Canada's Approved Training Organizations, and the apprenticeship hours that an apprentice develops should be entitled to the BC training Tax Credit Program, the employer should be entitled to the basic training tax credit (non redseal).

 

So here is my question.

I am an apprentice Aircraft Maintenance Engineer. My employer has had me working full time for him for 1 1/2 years. I have attended an approved training organization for the Aircraft Maintenance Engineer required training. Will this apprenticeship count towards the BC training Tax Credit Program, and will be employer be entitled to the basic training tax credit?

 

It is unjustified that an apprentice in the aviation industry can not take advantage of this tax credit, unless they want to take schooling that is not going to get them a job, as the training that is required to work in the industry is decided by Transport Canada and not I.T.A.

 

 

 

Good morning Me,

 

The BC Training Tax Credit (TTC) covers apprentices registered with the Industry Training Authority (ITA) for levels three and higher of a Red Seal (Interprovincial) program, or for all levels of a B.C.-Recognised (non-Red Seal) program.

 

Unfortunately, since you are registered in Aircraft Maintenance Engineer program through Transport Canada, you and your employer would not be eligible to claim the TTC.

 

Currently only programs administered by the ITA are eligible for the TTC. This is because the ITA is the main body for overseeing B.C.'s industry training and apprenticeship programs.

 

For additional information on industry standards and apprenticeship programs, it is recommended that you contact:

 

Industry Training Authority:

Telephone: 778-328-8700

Toll Free (within BC): 1-866-660-6011

Email: customerservice@itabc.ca

 

Or,

 

Transport Canada:

Telephone: 613-990-2309

Email: Questions@tc.gc.ca

 

For additional information regarding the Training Tax Credit please visit our website at: http://www.sbr.gov.bc.ca/business/Income_Taxes/TTC/default.htm or contact us by phone at 1-877-387-3332 or by email at ITBTaxQuestions@gov.bc.ca.

 

Sincerely,

 

Ryan Hall

Ministry of Finance

Income Taxation Branch

Ryan.Hall1@gov.bc.ca

 

So from Here i sent an email to the Minister of Advanced Education Murray Coel, who forwarded it to the 'labour market dision of advanced education'

 

From: ME]

 

Sent:

To: ALMD Minister ALMD:EX

 

Subject: apprenticeship programs and tax credits

 

I'm just writing about apprenticeship programs and the tax credits and grants entitled to them. I am wondering about the apprenticeship trade "Aircraft Maintenance Engineer M." This apprenticeship trade is under the control of Transport Canada. This apprenticeship entails schooling, on the job training, and exams, in order to be licensed in Canada as An Aircraft Maintenance Engineer. This training, licensing, and testing are all controlled by Canadian government legislation (The Canadian Aviation Regulations and Standards.)

 

Industry Training Authority in B.C. is trying to create a program called "Aircraft Maintenance Technician," and also "Aircraft Structures Technician" to try and bring apprentices into their training programs, instead of Transport Canada’s. These programs are misleading as they do not make it so you can work on Airworthy Aircraft in Canada. In order to work on airworthy aircraft, you must do the Transport Canada approved training program, and complete their required tasks in order to be a licensed mechanic, that can work on aircraft and deem them airworthy.

 

If I.T.A. is going to create these programs, it is only justified that the training that a mechanic takes through Transport Canada's Approved Training Organizations, and the apprenticeship hours that an apprentice develops should be entitled to the apprenticeship tax credits and grants (tool purchase tax credit, job creation apprenticeship tax credit, training grants/credits, etc.)

 

It is unjustified that an apprentice in the aviation industry can not take advantage of the tax credits and grants, unless they want to take schooling that is not going to get them a job, as the training that is required to work in the industry is decided by Transport Canada and not I.T.A.

 

 

Our Ref.

Me

E-mail Address: me

Dear Me:

 

Thank you for your e-mail sent to the Honourable Murray Coell, Minister of Advanced Education and Labour Market Development, regarding apprenticeship programs, related tax credits and grants. Your e-mail has been forwarded to me for response.

 

As the British Columbia tax credit program is administered through the Ministry of Finance, I have forwarded a copy of your e-mail to the branch responsible for tax policy for their review and consideration.

 

Currently the British Columbia Tax Credit program provides tax credits for employers and apprentices who are engaged in eligible apprenticeship programs administered through the Industry Training Authority (ITA).

 

The Transport Career Development Association (transCDA) is the industry training organization responsible for the program standards of the ITA designated aerospace programs. You will be pleased to know that, during the coming year, transCDA will conduct extensive stakeholder consultation to realign the ITA aerospace programs to meet the needs of industry as well as meet Transport Canada standards. Current program standards will be revised to reflect updated program completion requirements.

 

Again, I thank you for taking the time to write on this important matter.

 

Sincerely,

 

 

 

Shannon Baskerville

 

Assistant Deputy Minister

 

Labour Market & Immigration Division

 

Ministry of Advanced Education

 

and Labour Market Development

 

pc: Honourable Murray Coell

 

Minister of Advanced Education

 

and Labour Market Development

 

 

Mr. Paul Flanagan, A/Director

 

Tax Policy

 

Ministry of Finance

 

 

 

Mr. Russell Robertson, Chief Executive Officer

 

Transport Career Development Association

 

 

--------------------------------------------------------------------------------

 

Through all of this I ended up getting a letter back from jim flaherty Min of Finance

 

 

Thank you for your correspondence regarding the Apprenticeship Job Creation Tax Credit. Please excuse the delay in replying.

 

Our Government recognizes the importance of the skilled trades and the Apprenticeship Job Creation Tax Credit is one of the ways we have acted to support the skilled trades.

 

The qualifying trades for the Apprenticeship Job Creation Tax Credit are prescribed and include the 50 Red Seal trades. The Red Seal represents a national standard of excellence, which is recognized by employers throughout Canada, thus promoting inter-provincial mobility and national occupational standards. The Red Seal allows a journeyperson to engage in their trade –without having to write further examinations –in any province or territory in Canada where the trade is recognized. There are currently 50 Red Seal trades, which represent 89 percent of all registered apprentices in Canada and a substantial portion of the trades’ workforce.

 

Currently, the Aircraft Maintenance Engineer profession is not one of the Red Seal trades and is therefore not eligible for the Apprenticeship Job Creation Tax Credit. Budget 2006 indicated that non-Red Seal trades which are economically strategic could be prescribed as eligible trades for the purpose of the Apprenticeship Job Creation Tax Credit, based on recommendations from the Minister of Human Resources and Skills Development in consultation with provinces and territories. In this regard, I Have forwarded a copy of your correspondence to the Minister of Human Resources and Skills Development the Honourable Diane Finley.

 

Thank you for communicating your concerns.

 

Sincerely,

James M Flaherty

 

HRDC replied back

 

Dear me:

 

On behalf of the Honourable Diane Finley, I am responding to your electronic message of **Date****, which was forwarded to her on ****Date***, by the office of the Honourable James M. Flaherty. You wrote to inquire about the eligibility of the Aircraft Maintenance Engineer trade for the Apprenticeship Incentive Grant (AIG) and the Apprenticeship Job Creation Tax Credit (AJCTC) for employers. I apologize for this delayed reply.

 

Through the 2006 federal budget, the Government of Canada announced major investments to encourage apprenticeship training and to support apprentices. This included the AIG, a taxable $1,000 grant to registered apprentices who complete their first or second year in an apprenticeship program in any designated Red Seal trade, on or after January 1, 2007. In addition, the AJCTC, effective May 2, 2006, provides employers with a tax credit equal to 10 per cent of the wages paid to qualifying Red Seal apprentices in the first two years of their contract, to a maximum credit of $2,000 per apprentice per year. The AJCTC is administered by the Canada Revenue Agency.

 

Following Budget 2006, there was broad agreement that the AIG focus on supporting apprentices registered in Red Seal trades, considered as "economically strategic" trades, since these individuals represent 87.5 per cent of registered apprentices in Canada. The Red Seal program is recognized by employers across Canada as a national standard of excellence and ensures quality of training through national occupational standards and exams. As you know, the Aircraft Maintenance Engineer trade is not one of the Red Seal trades and therefore is not eligible for the AJCTC nor the AIG.

 

The Red Seal program is administered in each province and territory under the guidance of the Canadian Council of Directors of Apprenticeship. Apprenticeship is industry driven. Accordingly, if your industry is interested in having the Aircraft Maintenance Engineer trade designated as a Red Seal trade, your industry should submit a request to the apprenticeship authority in your province. For more information, I would recommend that you contact the British Columbia Industry Training Authority at 1223-13351 Commerce Parkway, Richmond, British Columbia, V6V 2X7, or by telephone at 1-866-660-6011.

 

I hope that the above information will be helpful in addressing your concerns. Thank you for taking the time to write.

 

Yours sincerely,

 

 

Martin Green

Director General

Workplace Partnerships

Skills and Employment Branch

Human Resources and Skills Development Canada

 

 

So in the end... It looks like if you want the tax benefit, you either a... Join ITA, or B... Write letters to HRSDC and tell them that the AME license/apprenticeship should be entitled to the tax benefits, and if enough people write this letter, it may get the AME license included on the list of 'approved apprenticeships' even though it isn't administered by "ITA".. I myself, am finished my apprenticeship, and just couldn't be bothered with this anymore. I fought for it years ago, when i was a structures apprentice, tried fighting for it again when I decided to go for my 'm' license. Now i've just bent over and taken it dry.. I had thought of just 'applying for the tax breaks' but couldn't justify the 'risk vs reward' of falsifying my tax return, being that I support a family.. If it was just me on my own, I would of just applied for the tax breaks, saved the money in the bank for 1 - 2 years, and then if it didn't get caught by the gov't I would of spent the money afterwards...

 

 

I had also talked with ITA, on different occasions, and can't seem to find any of those emails. I remember I was upset with the 'pay ita and pay transport canada' setup that we currently have right now. ITA you pay just to get the 'tax break' and transport you pay because you have to, if you want to make a living. Absolutely stupid. If only i was better at talking with beauracrats, I may of been able to do something, but as you can tell beauracrats are all good at 1 thing....

 

PASSING the Buck.

[marc]

Back when I first did the BC Apprenticeship Credit, my employer and I successfully registered with the ITA and I got an apprenticeship package and my employer was registered. This was before it was "under review".....

 

The CRA likely ran the registration list at the ITA against all the people who claimed the credit.

[KnuckleDragger]

I just got nailed with this underhanded crap audit as well. Nice cash grab and nice support from CRA for an industry already lacking fresh numbers. Have fun teaching pilots to fix their own machines cuz there isn't much in this trade for anyone with a good head on their shoulders. I don't have one so I'll just keep plugging away. Didn't know there was a registration list at the ita. Got a link on the instructions?

[wcobra]

I hate to re-affirm the already bad news, however an AME is definately not a trade designation. It is a license which grants the holder the authority to certify the Maintenance Release Statement on an aircraft after the work is performed. Referring to your "AME Apprenticeship" is an incorrect term. One is simply an in training, until such time as one has met the requirements for the issuance of an AME License.

 

The only legit way I'm aware of to claim your tools is to be incorporated as a business, and then your company can claim them.

 

It sucks big time, especially when you look at the tax return form and find that a musician can claim his guitar, and a logger can claim his chain saw, but a mechanic (auto or heavy duty) as a tradesman cannot claim the tools required to earn a living; never mind an AME, which is not a trade. There are no trade designations that I am aware of within the aviation industry that are currently approved as such.

 

I don't know about you, but the sound of rotors turning is music to my ears, so perhaps the work I do is generating music, so maybe that's an angle:)

 

Just my 2 cents from past experience.

[ThreePer]

After many phone calles to people in the know I have sorted out my situation and here is the solution.

 

*** THIS IS FOR BC RESIDENTS ONLY ***

*** APPRENTICES TAKE NOTE ***

* I got this info from a people within the ITA, TC, and PAMEA. *

 

As an apprentice, or if your like me, right now as an AME, sign up with the ITA via the Apprentice and Sponsor Registration Form as an Aircraft Maintenance Technician.

http://www.itabc.ca/AssetFactory.aspx?did=208

 

THIS IS A BC RECOGNIZED AND ITA BACKED, NON-RED SEAL TRADE. COMPLETELY SEPERATE FROM YOUR AME LICENCE.

 

At 1800 hour intervals report your hours via the Work Based Training Report.

http://www.itabc.ca/AssetFactory.aspx?did=900

 

At each 1800 hours interval you can, on your tax return, claim $1000, $1000, $2000, and $2500 for the BC Training Tax Credit.

 

After you reach 7200 hours, the ITA will issue you a Certificate as a Aircraft Maintenance Technician. This probably won't get you many jobs but it is how the CRA will let you claim the BC Training Tax Credits.

 

I am currently doing this right now for past years (Knuckledragger take note) and it is a PITA. But with some old Monthly work reports for work, I have traced my hours back to fill in the forms.

 

IF ANYONE HAS ANY QUESTIONS PM ME AND I WILL EMAIL YOU WITH ANSWERS TO ANY QUESTIONS I CAN ANSWER. I am working through it as we speak so forgive me if I missed anything.

 

As far as tools go, I must disagree with the above post. In the Tax Return it clearly says if you use your tools to maintain AIRCRAFT you can claim up to $500 as an AME annually and $1000 as an apprentice. Correct me if I am wrong. Especially if you do the above instruction, there should be no problems at all.

 

Hope this helps those apprentices out there that are hurting for the couple extra bucks

 

ThreePer