Hiring co-op students or recent graduates in Manitoba can help lower your payroll costs. Many employers miss these savings because the programs are tax credits, not upfront grants. The rules are different for students and graduates, so it’s important to know which incentive fits your situation.
This tax credit supports employers who hire students enrolled in registered co-operative education programs. You claim it when you file your Manitoba tax return.
Your business may qualify if:
This program encourages employers to keep co-op talent after graduation by supporting full-time jobs for recent graduates.
Your business may qualify if:
Unincorporated employers can claim this credit on their individual Manitoba income tax return. Corporations claim it when filing their corporate tax return.
These incentives are not application-based. You claim them through your tax return.
Hire an eligible co-op student or graduate.
Make sure the co-op program is registered and approved.
Track eligible wages carefully.
Only wages paid during the qualifying period count.
Complete the required Manitoba tax schedules.
Attach the co-op hiring tax credit forms when filing your return.
File your Manitoba tax return.
The credit is applied after Manitoba Finance reviews your return.
If you hire more than one student or graduate, each placement is assessed separately.
GrantHub’s matcher helps you find wage subsidies and tax credits in your province. It also shows if you can combine programs.
To qualify for these incentives, your business must:
Hiring students outside registered co-op programs:
Interns or summer students who are not in approved co-op programs do not qualify.
Claiming ineligible wages:
Only wages paid during the approved co-op term or full-time graduate period are eligible.
Missing the tax filing deadline:
You cannot claim these incentives retroactively if you miss the correct tax year.
Assuming the credit is automatic:
You must complete and submit the correct Manitoba tax schedules.
Q: Is the Manitoba co-op hiring incentive a grant or a tax credit?
It is a provincial tax credit, not an upfront grant. You receive the benefit after filing your Manitoba tax return.
Q: Can small businesses apply for the Co-op Students Hiring Incentive?
Yes. There is no minimum business size, as long as you meet the eligibility criteria and hire an approved co-op student.
Q: Can I claim both the student and graduate incentives for the same person?
Yes. If you hire a co-op student and later employ them full-time after graduation, you may claim the student incentive first and the graduate incentive later, as long as all conditions are met.
Q: Are these incentives refundable?
The student incentive is described as a repayable tax credit. The graduate incentive is claimed through corporate or personal income tax returns, depending on employer type.
Q: Can these incentives be combined with federal wage subsidies?
In many cases, yes. However, total government assistance cannot be more than eligible wage costs, so you need to coordinate your claims.
If you plan to hire students or recent graduates in Manitoba, these co-op hiring incentives can reduce your wage costs by up to $5,000 per hire. Use GrantHub to find matching programs and see which incentives fit your business before tax season.
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