The British Columbia Training and Education Savings Grant (BCTESG) is a new grant offered by the B.C. government as of August, 2015. The BCTESG provides $1,200 towards an RESP for residents of B.C. born in 2007 or later.
The earliest that one can apply for the grant is after the sixth (6th) birthday of the child, with the deadline being the day before the child's ninth (9th) birthday.
To qualify for the BCTESG, a B.C. resident must open an RESP (Registered Education Savings Plan) and complete an application as follows:
- For a beneficiary born in 2007 or 2008, the deadline to apply is August 14, 2018;
- For a beneficiary born on or between January 1, 2009 and August 15, 2009, the deadline to apply is August 14, 2018; or
- For a beneficiary born any time on or after August 16, 2009, the deadline to apply is by the beneficiary's ninth (9th) birthday.
Required documents to prove B.C. residency:
- If this is a new RESP, the parent/guardian and the child must both possess a valid Social Insurance Number (SIN). Additionally, the parent/guardian must possess one of the following:
- A valid British Columbia driver's licence;
- A British Columbia Identification (BCID) Card with a picture;
- A British Columbia Services Card; or
- A British Columbia utilities bill (dated within the last 3 months and listing the current address of the custodial parent or legal guardian). A utilities bill can be any of: electricity, gas, phone, cable, water or garbage bills.
Note: new B.C. CareCard and driver's licence will be fully implemented in 2018
If approved, the $1,200 grant will be deposited directly into the RESP once the application has been processed by Employment and Social Development Canada (ESDC).
Each eligible child may receive one grant of $1,200.
Please note that transferring the B.C. Training and Education Savings Grant from an RESP held at a participating financial institution to a non-participating financial institution may result in a loss of the grant.
Application Process
You (the Subscriber/Client)
- Subscriber completes and submits the BCTESG application form to Heritage head office.
Heritage
- Heritage reviews the BCTESG eligibility criteria and information provided on the BCTESG application form.
- Heritage submits the BCTESG information to ESDC on the subscriber's behalf.
ESDC
- ESDC processes transactions, validates eligibility, calculates and makes payments of the BCTESG on behalf of the Government of British Columbia to Heritage.
Heritage
- Heritage deposits the BCTESG payment towards the specific RESP accordingly.
- Heritage notifies the subscriber, via the annual Statement of Account, that the BCTESG payment has been deposited towards the RESP.
Restrictions and Conditions
The BCTESG must be used for post-secondary education or training purposes. Once the beneficiary is enrolled in full-time or part-time studies at a qualifying post-secondary educational institution, the BCTESG is withdrawn from the RESP by the way of an Educational Assistance Payment (EAP).
The grant can be used for any qualifying post-secondary education or training program in or outside of Canada.
In the event that the RESP is closed or the beneficiary chooses not to pursue post-secondary education or a training program, the BCTESG will be returned to the Province of British Columbia.
Taxation
The BCTESG is not considered as taxable income until it is taken from the RESP in an EAP for post-secondary education. Once deposited into the RESP, it is tax-sheltered until maturity of the plan.
However, money paid out of the RESP as an EAP is taxed as income in the hands of the student. Since many students have little or no income while they attend a post-secondary institution, they typically pay little to no tax.
For more information on the B.C. Training and Education Savings Grant:
Employment and Social Development Canada
Canada Education Savings Program
Toll-Free Call center: 1 888 276-3624
TTY Call Center: 1 866 260-7723
Email: CESP-PCEE@hrsdc-rhdcc.gc.ca
Heritage Plans are scholarship plans issued under the sponsorship of the Heritage Educational Foundation. Units of the Heritage Plans are offered by prospectus only, a copy of which can be obtained from the registered dealer, Heritage Education Funds Inc. at HeritageRESP.com. These securities may not be appropriate for all investors and are subject to certain risk factors. See the prospectus for details.