Co-Operative Education FAQs

Questions About the Co-op Students Hiring Incentive

Answers to Questions from Post-Secondary Institutions

1. Will students get money from the Co-op Students Hiring Incentive?
2. How do I apply to get my co-operative education program involved in the Co-op Students Hiring Incentive (COS-HI)?
3. My students work for a number of different employers. Which employers are eligible for the tax credit?
4. There are a number of forms associated with the Co-op Students Hiring Incentive (COS-HI). How does the process work?
5. What is a “placement?”
6. How many placements am I allowed for my program?
7. How many placements can a single student have that are eligible for the benefit in the Co-op Students Hiring Incentive (COS-HI)?
8. How do co-op programs at my institution become eligible for the tax credit?
9. What does it mean to have the work done “predominantly” in Manitoba?
10. Are ‘internships’ or ‘practica’ eligible for the credit?
11. Are there limitations to the academic areas of the co-op programs that are eligible?
12. What happens if a student completes the work term, but does not complete the program successfully?
13. Do I have to change how my program is structured and administered to meet the requirements of the tax credit?

1. Will students get money from the Co-op Students Hiring Incentive?

No. The COS-HI is designed as a benefit for employers. Students benefit through the increased incentive that businesses have to hire co-operative education students. Post-secondary education institutions benefit through having an additional tool with which to get employers involved in co-operative education programming.

2. How do I apply to get my co-operative education program involved in the Co-op Students Hiring Incentive (COS-HI)?

Institutions apply to the Council on Post-Secondary Education for each co-operative education program that is to participate in the program by completing the Application for Work Placement Permit (125 KB)

This form asks for a demonstration how the co-op program conforms to the definition of a co-operative education program as specified by the regulation. This information is required in order to ensure the educational value of the program in question, and to satisfy the accountability requirements for the tax credit.

3. My students work for a number of different employers. Which employers are eligible for the tax credit?

Most Manitoba employers are eligible for the tax benefit, including private companies, co-operatives, Crown Corporations, municipally-owned businesses, not-for-profit organizations, unincorporated employers, and corporations and other organizations exempt from income tax. The only exceptions are provincial and federal government departments.

4. There are a number of forms associated with the Co-op Students Hiring Incentive (COS-HI). How does the process work?

There are four forms for this tax credit:

1. The Application for Work Placement Permit
2. The Work Placement Permit
3. The Proof of Completed Work Placement
4. The Proof of Credit

The process is started by the post-secondary education institution offering the co-operative education program by completing the Application for Work Placement Permit (125 KB). This permit helps the Council on Post-Secondary Education assess whether or not the program is eligible for the tax credit.

An Application for Work Placement Permit (125 KB) is completed by the post-secondary institution once for each co-operative education program, and is not required for each student.

Normally the permit is completed once per year. However, should a post-secondary education institution need additional placements and no other information on the “Application for Work Placement Permit” change, an e-mail or letter may be sent to the Council requesting the additional placements, citing the Certificate number on the existing Work Placement Permit received by the institution from the Council on Post-Secondary Education.

An e-mail or letter is required to create a paper file of the numbers of work placements granted for audit purposes. For this reason, telephone requests cannot be approved.

Once the eligibility of the program has been determined, the Council on Post-Secondary Education issues a Work Placement Permit. This permit authorizes placements for the Co-op Students Hiring Incentive. A Certificate number is assigned to the co-operative education program and that number remains with that program as long as applications are received for additional work placements.

Once receiving authorized spaces in the COS-HI, the post-secondary institution offering the eligible co-operative education program completes Part I of the Proof of Completed Work Placement (163 KB) form for each placement (a placement is defined below). This form is sent to the work placement (or it could be taken to the workplace by the student) and held by the employer until the work term is completed. Upon completion of the work term, the employer completes Part II of the form, and the student completes Part III.

The form is then returned to the post-secondary education institution and Part IV is completed.

The form is sent to the following address for processing:

Manitoba Tax Assistance Office
c/o 809-386 Broadway Avenue
Winnipeg MB R3C 3R6
Fax: (204) 948-2263
Voice: (204) 948-2115 (1-800-782-0771 outside Winnipeg)
E-mail: tao@gov.mb.ca

Once the form is received and assuming all is in order, Manitoba Finance issues the Proof of Credit form to the employer, which is included on the employer’s tax return. This credit applies to both corporate and unincorporated tax filers. This stage does not involve the post-secondary institution.

5. What is a “placement?”

A “placement” is equivalent to one work term. Accordingly, for many co-operative education programs it is possible that one student would have more than one placement. One student would have more than one placement when that student has more than one work term in the program. For example, one student enrolled in a co-operative education program that requires three work terms to successfully complete the program would mean that the student would have three placements.

6. How many placements am I allowed for my program?

It is anticipated that post-secondary institutions will be granted the number of placements that they can fill. Institutions are not expected to ask for more placements that they can enroll in any one year.

7. How many placements can a single student have that are eligible for the benefit in the Co-op Students Hiring Incentive (COS-HI)?

A single student may have a lifetime maximum of five (5) placements that are supported by the COS-HI. This does not limit the number of placements a student can have in a given co-operative education program, however the benefits of the COS-HI are available only for five (5) of those placements of an individual student.

8. How do co-op programs at my institution become eligible for the tax credit?

Co-operative education programs are eligible for the tax credit if:

• the co-operative education program meets the CAFCE definition of a co-operative education program and is recognized by the CAFCE;
• the co-operative education program is offered by a recognized post-secondary education institution as defined in the regulation; and,
• the recognized post-secondary institution offering the co-op program is participating in the program.

9. What does it mean to have the work done “predominantly” in Manitoba?

In addition to working for a company, business or organization that files an income tax return in Manitoba, the student must perform the majority of the work here in Manitoba. Some travel is allowed (for example, training for the job in another jurisdiction). However, the work must be performed primarily in Manitoba.

10. Are ‘internships’ or ‘practica’ eligible for the credit?

All programs that meet the criteria outlined in the regulation, regardless if they are called a “co-operative education” program are eligible for the tax credit.

11. Are there limitations to the academic areas of the co-op programs that are eligible?

No, there are no limitations in terms of the academic areas. The co-op program only needs to be recognized and offered by a post-secondary institution that is participating in the tax credit program.

12. What happens if a student completes the work term, but does not complete the program successfully?

The regulation allows for this eventuality.

The post-secondary institution, upon receiving the Proof of Completed Work Placement form back from the employer should not sign in Part IV where a student has failed to fully satisfy the requirements of the program and therefore will not receive credit towards a degree, certificate or diploma. The post-secondary institution should note, either in the margin of the form, or through correspondence attached to the otherwise completed form an indication of why the post-secondary institution did not sign the form.

Manitoba Finance will deal with these eventualities on an individual basis. Note that it is the responsibility of the employer, and not the post-secondary institution, to pursue the matter with Manitoba Finance. Employers should contact the office below for further information:

Manitoba Tax Assistance Office
c/o 809-386 Broadway Avenue
Winnipeg MB R3C 3R6
Fax: (204) 948-2263
Voice: (204) 948-2115 (1-800-782-0771 outside Winnipeg)
E-mail: tao@gov.mb.ca

13. Do I have to change how my program is structured and administered to meet the requirements of the tax credit?

No. The tax credit is designed in such a way as to require information that you or the business currently collects on the students and work placements.

Institutions are free to structure their cooperative education programs as they see fit.

Answers to Questions from Students

1. Can I get money from the Co-op Students Hiring Incentive?
2. What do I have to do to ensure that my employer benefits from this program?
3. Will an employer benefit from the COS-HI each and every time I am on a work placement in a co-op education program?

1. Can I get money from the Co-op Students Hiring Incentive?

No. The COS-HI is designed as a benefit for employers. Students benefit through the increased incentive that businesses have to hire co-operative education students. Post-secondary education institutions benefit through having an additional tool with which to get employers involved in co-operative education programming.

2. What do I have to do to ensure that my employer benefits from this program?

The program is designed so that the student has to do very little aside from what the co-operative education program and your employer require you to do anyway.

The student is required to provide information on Part III of the Proof of Completed Work Placement (163 KB) form. This involves providing information about previous enrollment in a different co-operative education program. The employer will have that form for you.

3. Will an employer benefit from the COS-HI each and every time I am on a work placement in a co-op education program?

Not necessarily. A single student may have a lifetime maximum of five (5) placements that are supported by the COS-HI. This does not limit the number of placements a student can have in a given co-operative education program, however the benefits of the COS-HI are available only for five (5) of those placements of an individual student.

COS-HI: Information for Potential Employers

1. What is the Co-op Students Hiring Incentive (COS-HI)?
2. What kinds of Manitoba employers can benefit from the COS-HI?
3. How much is the tax credit benefit?
4. What kinds of students can we hire to earn the tax credit, and on what terms?
5. What kinds of co-operative education programs may be approved to participate in COS-HI?
6. How can my company/business/organization participate?
7. How is a work placement documented?
8. How does our company/business/organization claim the credit?
9. Whom can we contact for more information?

1. What is the Co-op Students Hiring Incentive (COS-HI)?

The COS-HI is a Manitoba income tax credit for employers, both corporate and unincorporated, that provides job placements for students in co-operative education programs.

2. What kinds of Manitoba employers can benefit from the COS-HI?

Most Manitoba employers are eligible for the tax benefit, including private companies, co-operatives, Crown Corporations, municipally-owned businesses, not-for-profit organizations, unincorporated employers, and corporations and other organizations exempt from income tax. The only exceptions are provincial and federal government departments.

3. How much is the tax credit benefit?

10% of salary and wages, less any government assistance received in respect of those wages and salaries, paid to a student for work performed during an approved co-operative education work placement. The maximum tax credit is $1,000 per work placement.

4. What kinds of students can we hire to earn the tax credit, and on what terms?

• Students must be enrolled in a pre-approved co-operative post-secondary education program (see criteria below). The student may be enrolled at an institution located in Manitoba, elsewhere in Canada, or in a foreign country.
• The work placement must be creditable towards a student’s degree, certificate or diploma.
• The work placement must be full-time, paid work related to the student’s course of studies and must be for a period of 10 or more consecutive weeks.
• The student must work primarily in Manitoba.
• Each student is limited to five work placements.
• An employer may hire the same student for several placements.
• There is no restriction on the number of students in respect of which an employer may apply for COS-HI benefits.

5. What kinds of co-operative education programs may be approved to participate in COS-HI?

• The program must be in possession of a valid COS-HI Work Placement Permit issued by the Manitoba Government’s Council on Post-Secondary Education (COPSE). To obtain the Work Placement Permit, the institution which runs the program must agree to participate in the COS-HI and provide the supervision required. The co-operative education program must also be certified by the Canadian Association for Co-operative Education (CAFCE) OR show that it meets all of the following criteria:
  • The program must be developed and/or approved by a recognised educational institution.
  • The student is engaged in productive work, rather than merely observing.
  • The student receives remuneration for the work performed.
  • The student’s progress on the job is monitored by the co-operative education institution.
  • The student’s progress on the job is supervised and evaluated by the employer.
  • The time spent in periods of work experience comprises at least 20% of the time spent in academic study.
• Institutions and co-operative education programs anywhere in the world may apply for a COS-HI Work Placement Permit.
• There are no restrictions on the nature of the academic or professional subject-matter of the co-operative education program: typical programs are in engineering, information technology, life sciences, business and social sciences, urban planning, etc.

6. How can my company/business/organization participate?

• Companies, businesses, or organizations participate by establishing contact with an approved co-operative education program.
• If you are thinking of hiring a particular student, and that student is in a co-operative education program, contact the student’s academic supervisor or another official of their program.
  • If the student’s program has already been approved for COS-HI participation, the program will routinely provide you with the necessary form before the student begins working.
  • If the co-operative education program in which the student is enrolled does not yet participate in COS-HI, please contact the Council on Post-Secondary Education (COPSE), at the contact address below – or have the co-operative education program contact COPSE – to determine if they qualify for participation.
• On the other hand, if you are looking for students from a certain academic field or specialisation, you are advised to contact universities and colleges that offer a relevant course of study, and enquire whether they also offer a co-operative education program which might qualify for participation in the COS-HI. Remember that the program may be in Manitoba, elsewhere in Canada, or in a foreign country, as long as the student(s) can locate in Manitoba for the duration of the work placement.

7. How is a work placement documented?

• It is anticipated that you will be in contact with a representative of the student’s co-operative education program before the work placement.
• Before the work placement begins, you will receive a form from the co-op education program outlining particulars of the placement agreed upon. (The program will send it, or the student may bring it to you). This will provide you with a measure of assurance that the placement, once completed, will be eligible for COS-HI.
• When the student has finished working for you, you will be asked to complete a brief form certifying information about the actual duration and location of the placement, along with wages and salaries paid and any other government assistance you may have obtained for the placement. The student will also sign this form. The form will then be returned to the employer’s contact at the co-op education program.
• Once it has been determined that the student has completed the work placement to the satisfaction of the co-operative education program, the program will certify the form and send it to the Manitoba Department of Finance.
• If you hire a student who subsequently fails to complete the work placement, you may still qualify for a COS-HI.

8. How does our company/business/organization claim the credit?

• Upon receipt of the Proof of Completed Work Placement form from the co-operative education program, the Manitoba Department of Finance will send the employer a Proof of Credit certificate.
• The Proof of Credit certificate must be filed by the employer with the income tax return for the year in which it is earned, that is the year in which the work placement was completed.
• Prior to March 6, 2006, the COS-HI was only a non-refundable credit that offset Manitoba income tax payable. Credits earned in a year but unused could be carried back three tax years (ending after April 22, 2003) or carried forward 10 years. After March 6, 2006, the COS-HI became a refundable credit which offsets any Manitoba income tax payable with the balance refunded to the employer. The employer may claim the credit by filing either a corporate or individual Manitoba income tax return.
• The COS-HI benefit is itself government assistance (income), and must be treated as such on the company’s income tax return.
• Any questions pertaining to claiming the credit should be directed to the Manitoba Tax Assistance Office at the address above.

9. Whom can we contact for more information?

• If you are considering hiring a specific student, enquire about the academic program in which the student is enrolled.
• If you are looking for students in your field of business, contact the leading Manitoba, Canadian, or foreign institutions of higher learning offering programs and ask if they have any programs that may qualify as co-operative education programs for the purposes of the COS-HI. Program managers will know if they are already participating, or can decide if they are prepared to apply to participate.
• Interested institutions, program officers, employers and students should contact:

Council on Post-Secondary Education (COPSE)
608-330 Portage Avenue
Winnipeg MB R3C 0C4
(204) 945-1833 – voice
(204) 945-1841 – fax
info@copse.mb.ca

Questions About the Co-operative Graduate Hiring Incentive

Questions from Graduates | Information for Potential Employers

Answers to Questions from Graduates

1. Can I get money from the Co-operative Graduate Hiring Incentive?
2. What do I have to do to ensure that my employer benefits from this program?
3. Is there a limit to the number of employment placements where I can work so the employer can benefit from the COG-HI?

1. Can I get money from the Co-operative Graduate Hiring Incentive?

No. Like the COS-HI, the COG-HI is designed primarily as a benefit for employers. Graduates benefit through the increased incentive that employers, both corporate and unincorporated, have to hire co-operative education graduates. Graduates or those preparing to graduate from a co-op education program after March 6, 2006 will receive a certificate from their institution indicating that they are candidates for prospective employers who can qualify for the tax benefit when they hire graduates.

Graduates benefit by living and working in permanent full-time jobs in Manitoba, and by being exposed to more employment offers and choices.

2. What do I have to do to ensure that my employer benefits from this program?

The program is designed so that the graduate has very little involvement in applying for the COG-HI.

The graduate is required to provide to the employer a Graduand’s Certificate, signed by a co-op education co-ordinator or authorized signing officer at the post-secondary institution, certifying that the graduate, or prospective graduate, has completed the course requirements for the COS-HI program.

The COS-HI program graduate must also complete two full years of employment, where employment commences within 18 months of graduation, in a field of study related to the employment in order for the employer to fully benefit from the COG-HI.

However, this does not imply that the graduate is assured of permanent employment with the employer for two years and beyond, or conversely that the graduate must remain employed with the same employer over the two-year period.

3. Is there a limit to the number of employment placements where I can work so the employer can benefit from the COG-HI?

Yes. A single graduate is limited to two (2) one-year periods of employment under the COG-HI. These periods may be with the same employer or with different employers.

COG-HI: Information for Potential Employers

1. What is the Co-operative Graduate Hiring Incentive (COG-HI)?
2. What kinds of Manitoba employers can benefit from the COG-HI?
3. How much is the tax credit benefit?
4. Under what conditions can we hire graduates to earn the tax credit, and on what terms?
5. What happens if I hire a qualifying graduate who fails to complete a qualifying period of employment?
6. How can I as an employer participate?
7. How do I claim the COG-HI?
8. Whom can we contact for more information?

1. What is the Co-operative Graduate Hiring Incentive (COG-HI)?

COG-HI is an income tax credit for employers who hire and retain, in full-time employment in Manitoba, students who graduate after March 6, 2006 from a recognized post-secondary co-operative education program (not limited to Manitoba institutions) in a field of study related to the employment.

2. What kinds of Manitoba employers can benefit from the COG-HI?

Most Manitoba employers are eligible for the tax benefit, including private companies, co-operatives, Crown Corporations, municipally-owned businesses, not-for-profit organizations, unincorporated employers, and corporations and other organizations exempt from income tax. The only exceptions are provincial and federal government departments.

3. How much is the tax credit benefit?

5% net of salary and wages, less any government assistance received in respect of those wages and salaries, paid to a graduate in each of the first two years of employment to a maximum of $2,500 for each year, when the employment begins within 18 months of completion of all course requirements or the graduation date (whichever is later).

4. Under what conditions can we hire graduates to earn the tax credit, and on what terms?

• Graduates must have received a degree, diploma or other certificate of completion for completing a co-operative education program.
• Graduates from a qualifying co-operative education program from anywhere in the world can be hired.
• Graduates are employed in a permanent position, and not in a position for a specified term of completion of a specified task or project.
• The employment is full time (at least 35 hours per week).
• The work is performed primarily in Manitoba for an employer who is resident in Manitoba or has a permanent establishment in Manitoba.
• The work is closely related to the subject matter of the co-operative education program completed by the graduate, or requires skills and knowledge acquired in that program.
• The period of employment begins at the start of a pay period that begins
  • Within 18 months after the graduate completes the co-operative education program, if the employer has not claimed the credit for a previous period of employment in relation to that graduate, or
  • Immediately after the end of the previous period of employment for which the employer has claimed the credit in relation to that graduate.
• There is no limit on the number of graduates hired for whom employers may claim the credit. However, a graduate is limited to two (2) one-year periods of employment under the COG-HI.

5. What happens if I hire a qualifying graduate who fails to complete a qualifying period of employment?

If the graduate fails to complete the qualifying period of employment, the employer should include a description of the circumstances and the reason for the failure along with the COG-HI application form.

Manitoba Finance will deal with these eventualities on an individual basis. It is the responsibility of the employer to pursue the matter with the Manitoba Tax Assistance Office.

6. How can I as an employer participate?

• Much like the COS-HI, employers can participate in the COG-HI by establishing contact with an approved co-operative education program.
• If you are thinking of hiring a particular graduate from a co-operative education program, contact the program’s academic supervisor or another official of their program. You will require a certificate from the graduate certifying that the graduate has completed, or is expecting to complete all the requirements of the COS-HI program in order to participate in the COG-HI.
• On the other hand, if you are looking for graduates from a certain academic field or specialization, you are advised to contact universities and colleges that offer a relevant course of study, and enquire whether they also offer a co-operative education program which might qualify for participation in the COG-HI. Remember that the program may be in Manitoba, elsewhere in Canada, or in a foreign country, as long as the graduate(s) can locate in Manitoba for permanent employment.

7. How do I claim the COG-HI?

• Once you have hired a graduate of a co-op education program, you must wait until the first full year of employment is completed before applying for the benefit. At that time, you will need to complete the Co-operative Graduate Hiring Incentive Application Form (77 KB) and forward it to the Manitoba Tax Assistance Office.
• Part 1 will require documentation that certifies the employee has graduated from a recognized co-operative education program. This includes a copy of the graduate’s degree, diploma or certificate.
• Parts 2 and 3 of the Form should be completed at the end of the first qualifying period of employment.
• If the employee is retained for a second full year, you may apply for a second tax credit by using a photocopy of the same application form and completing the information for the second qualifying period of employment on Part 4 of the form.
• If there are different employers between the first and second employment periods, a new application will be required.
• The credit is used to reduce tax payable for the year applicable to the employment time period. Any remaining amount is refundable to the employer.

8. Whom can we contact for more information?

• If you are considering hiring a specific graduate, enquire about the academic program from which the individual has graduated.
• If you are looking to employ graduates in your company or organization, contact the leading Manitoba, Canadian, or foreign institutions of higher learning offering programs and ask if they have graduates from co-operative education programs who may qualify for purposes of the COG-HI.


• For general inquiries about the COS-HI or COG-HI, contact:

  Council on Post-Secondary Education (COPSE)
  608-330 Portage Avenue
  Winnipeg MB R3C 0C4
  (204) 945-1833 – voice
  (204) 945-1841 – fax
  info@copse.mb.ca

• For tax-related information, contact:

  Manitoba Tax Assistance Office
  c/o 809-386 Broadway Avenue
  Winnipeg MB R3C 3R6
  Fax: (204) 948-2263
  Voice: (204) 948-2115 (1-800-782-0771 outside Winnipeg)
  E-mail: tao@gov.mb.ca