Investing in web accessibility and complying with the Americans with Disabilities Act (ADA) now entitles businesses and agencies to a tax credit according to Section 44 of the IRS Code. This is great news for any business or agency that invests in an accessible website and offers an inclusive user experience to the population living with disabilities.
What is the ADA tax credit?
By working on accessibility and maintaining ADA compliance, you earn back the cost you invested in your accessibility efforts.
The government has decided to initiate The Disabled Access Tax Credit to incentivize investment into accessibility. To put it simply, they want to help you help others by reducing the financial burden.
Under Section 44 of the IRS Code, The Disabled Access Tax Credit is available to any business or agency with an accessible, compliant website and has a total revenue of $1,000,000 or less in the previous tax year or 30 or fewer full-time employees.
Get up to $ 5,000 back!
The Disabled Access Tax Credit can cover 50% of the business or agency’s expenditures in a year, for up to $10,250. The first $250 of your expenditures is not covered, which means the maximum credit allotted is $5,000.
The credit received by the business or agency can be used for the removal of architectural barriers in facilities, and the purchase of assistive equipment or services such as sign-language interpreters, the production of accessible formats, or in some cases, the hiring of consulting services.
The simple application process
First thing first: as it pertains to accessible and compliant websites, please refer to the Tax Incentives for Improving Accessibility Fact Sheet which provides information on The Disabled Access Tax Credit. Details on an additional tax deduction for the barrier removal at physical locations are also included in the file.
Once you have confirmed that you qualify for The Disabled Access Tax Credit, you can fill out the relevant form and apply for the benefit which requires an attached tax return. More instructions can be found on page 2 of the form.
For more information regarding The Disabled Access Tax Credit and an additional tax deduction, you can also visit the IRS Tax Credits and Deductions page on the Americans with Disabilities Act website.