Open, closes Dec 3, 2026Wage subsidy
Canada Summer Jobs 2027
Up to 50% of the provincial adult minimum hourly wage for private and public sector employers (up to 100% for not-for-profits)
Employment and Social Development CanadaAll of Canada
Tax creditOntario program
Co-operative Education Tax Credit
If you hire a co-op student from an eligible Ontario college or university, you can claim part of their pay back as a tax credit. It's refundable and works for both corporations and unincorporated businesses. The most per placement is $3,000.
- Amount
- 25% to 30% of the student's wages and agency fees, up to $3,000 per work placement.
- Status
- Year-roundClaimed on your tax return for the year the placement ends. There's no application window.
- Type
- Refundable tax credit (25% to 30%)
- Run by
- Government of Ontario (administered by the Canada Revenue Agency)
- Where
- All of Ontario
- Checked on
- Nov 13, 2026
Who it's for
- Corporations or unincorporated businesses with a permanent establishment in Ontario
- Hiring a student in a qualifying co-op program at an eligible Ontario university or college
- The placement is paid, productive work, supervised and evaluated by you
- At least 10 straight weeks (internships: 8 to 16 straight months)
Not for
- Students from institutions not on the eligible list
- Placements that are only observation, or unpaid
What it covers
- Salaries and wages paid to the co-op student, including taxable benefits
- Fees paid to an employment agency for the placement
How to apply
- Get a letter of certification from the school for each placement and keep it for at least 7 years.
- Corporations claim on Schedule 550 with the T2 return.
- Unincorporated businesses claim on Form ON479 with the personal tax return.
- Confirm your claim with your accountant.
Good to know
- The rate is 30% if last year's payroll was $400,000 or less, 25% at $600,000 or more, and in between for payroll between those amounts.
- Placements longer than 4 months can count as more than one placement.
- The credit itself is taxable income in the year you receive it.
- Other government help for the same placement reduces what you can claim.
Questions
Does my business need to be incorporated?
No. The official page says unincorporated businesses can claim it too, on Form ON479 with the personal tax return.
Do I send anything to the government first?
No. You claim it on your return. You keep the school's letter of certification on file for at least 7 years in case the CRA asks for it.
Which students count?
Students in a qualifying co-op program at an eligible Ontario university or public college, plus a few named institutions such as OCAD and Redeemer University College.