Canadian ITC Labour Requirements
Detailed guide to the labour requirements under Canada's Income Tax Act for Clean Economy ITC eligibility at the enhanced rate, covering prevailing wage obligations, apprenticeship ratios, and record-keeping requirements.
Prevailing Wage Requirement
All workers in designated trades performing qualifying construction, installation, or renovation work must be paid no less than the prevailing wage for their trade and geographic area. Prevailing wage is defined by reference to applicable Collective Bargaining Agreements.
Apprenticeship Ratio Requirement
At least 10% of hours worked by tradespersons in each designated Red Seal trade must be performed by registered apprentices.
Record-Keeping Obligations
- Certified payroll records must be maintained for six years after filing
- Records must be organized by worker, trade, project, and time period
- Apprenticeship registration documents must be maintained for all apprentices
- CBA reference documents must be retained to demonstrate the prevailing wage benchmark applied
Contractor Obligations
The compliance obligation flows down to all contractors and subcontractors performing qualifying work. Project developers must include prevailing wage and apprenticeship compliance requirements in all EPC and subcontractor agreements.
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