Co-operative Education Tax Credit

Hiring post-secondary talent can be a smart way for Ontario businesses to build future skills while getting immediate support on payroll costs. The Co-operative Education Tax Credit is designed to make it easier for employers to bring students into meaningful, paid roles through recognized co‑op and internship programs at Ontario colleges and universities. Instead of being a grant paid upfront, this incentive works through the tax system, helping offset part of the wages you pay to eligible co‑op students.

Administered by the Government of Ontario through the Ministry of Finance, the credit is refundable and can provide up to about $3,000 for each qualifying work placement. It’s available to corporations as well as unincorporated businesses with operations in Ontario, making it relevant for both growing SMEs and larger enterprises. Because the placements are tied to formal co‑operative education programs, businesses benefit from students who are expected to contribute productively, gain hands-on experience, and be supervised and evaluated as part of their academic requirements.

For employers who regularly hire students or are considering adding co‑op placements to their workforce strategy, this tax credit can significantly reduce the net cost of doing so. The program is ongoing and can be claimed when you file your Ontario taxes, making planning especially important. Reviewing the full details can help determine how this credit fits into your hiring and talent development plans.