Provides employers operating unincorporated businesses with a refundable tax credit for hiring post-secondary education students enrolled in a recognized co-operative education program.

The tax credit is based on salaries and wages paid to a student in a co-operative education work placement. Corporations can claim 25 per cent of eligible expenditures (30 per cent for small businesses). The maximum credit for each work placement is $3,000. Most work placements are for a minimum employment period of 10 weeks up to a maximum of four months.