Convincing skilled students to stay put after graduation

New Brunswick offers tax rebates, Ottawa makes staying in Canada more attractive to foreign students
By David Brown
|Canadian HR Reporter|Last Updated: 05/11/2005

In the latest in a series of initiatives to improve New Brunswick’s skilled labour supply, Premier Bernard Lord announced last month that post-secondary students will get tax breaks worth up to $10,000 if they work in the province after graduation.

Lord said the New Brunswick Tuition Tax Cash Back program, believed to be the first of its kind in Canada, will make post-secondary education more accessible and affordable. And by offering rebates for grads filing tax returns in the province, the program will “encourage skilled, well-educated workers to choose to live and work right here in New Brunswick,” he said.

Students attending post-secondary schools as of Jan. 1, 2005, will earn a credit for each year’s tuition. Beginning in 2007 (for the 2006 tax year), graduates working in the province can use those credits for income tax rebates worth 50 per cent of the cost of their tuition, up to $2,000 per year. Students can carry forward unused credits and redeem them in later years to a maximum of $10,000.