Tax credits


Employers that provide a co-op work-term in a work environment may be eligible for financial assistance in the form of a refundable tax credit.

A few weeks after the work-term is completed, ÉTS will send the appropriate documents to the employer; the employer then fills them. The completed form is then submitted by the company to the Ministère du Revenu du Québec.

The maximal amount of the tax credit which a company can receive is:

144$ a week for a regular coop student
192$ a week for a coop student with status of immigrant
240$ a week for a coop student with handicapped person's status

The maximal amount is determined according to an amount of eligible expenses and a rate of tax credit, fixed by Revenu Québec.

Also, if your company has hired a co-op student for three consecutive taxation years, you may be eligible to obtain a more substantial tax credit. You may contact Revenu Québec for more information concerning this matter.

Furthermore, a percentage (%) of expenses incurred in the hiring of a co-op student may be invested towards the Workforce Skills Development and Recognition Act (1% training initiatives).

We invite you to read the sections below to obtain more information about tax credits.


Who is eligible?

The co-op student

Co-op students are eligible if they complete a co-op work-term with a corporation, company or registered individual located in Québec meeting the following requirements:

  • Be an individual who is enrolled as a full-time student in a high school, college or university program that includes at least 140 hours of co-op employment.

The supervisor

In order to be considered an eligible supervisor, an individual must meet the following requirements:

  • Be an employee of an establishment, corporation, company or individual located in Québec;
  • Be an employee whose contract includes a minimum of 15 hours of work per week.

If a co-op student has more than one supervisor, calculate the number of hours of supervision allowed based on each supervisor’s pro-rated salary.



Eligible amounts for co-op students and supervisors

Co-op student: the lesser of a) or b)

a) Hourly pay ($) x number of hours worked, minus government assistance (if applicable)
b) Maximum of $18 x number of hours worked PLUS:

Supervisor: the lesser of a) or b)

a) Hourly pay ($) x number of hours worked, minus government assistance (if applicable)
b) Maximum of $30 x number of hours based on the following:
  • S1 : maximum of 6 hours of supervision per week
  • S2 : maximum of 5 hours of supervision per week
  • S3 : maximum of 4 hours of supervision per week
  • S4 : maximum of 4 hours of supervision per week
  • SM : maximum of 4 hours of supervision per week



Sample calculation: Tax credit and 1% training contribution

Co-op student: Maximum of $18/hour x 40 hour  = $720
     +
Supervisor:  Maximum of $30/hour x the number of hours based on the work-term level (minus government assistance, if applicable)  = $180
   Total  = $900
 
However, you can only apply $600 (maximum allowable).
The applicable rate for a regular coop student is 24%.

In this example, the amount of the tax credit is $144, or 24% of the maximum allowable amount.

For the tax credit: 24% of the eligible amount (for individuals, 12% of eligible expenses)
  • $600 x 24% x 17* weeks = $2 450 for a 4-month work-term
  • $600 x 24% x 32** weeks = $4 600 for an 8-month work-term

For the 1% training contribution:
Actual expenses (co-op student’s salary and supervisor’s hours of supervision), minus the tax credit ($144 in the example cited)

*Or the actual number of weeks worked (maximum of 17 weeks)
**Or the actual number of weeks worked (maximum of 32 weeks)



Required forms

CO-1029.8.33.6
  CO-1029.8.33.10
(sent by ÉTS at the end of the work-term: original to be sent to the Ministère du Revenu and a file copy)
  “SQDM” Certification (ÉTS number: 06F165-05)
Ministère de l’Éducation permit number: 978010
 
Forms are available from the Ministère du Revenu du Québec (to be included with your company's tax return):
  • Quebec: 418 659-4692
  • Montreal: 514 873-4692
  • other regions: 1 800 450-4155

Learn more about tax credits for practicums in the workplace.