Your business may be eligible to receive a tax credit up to $5,000 for investing in an accessible website.
We understand that a custom WordPress website – or any technology service, really – can be a big investment for a small business.
That’s why we’re always on the lookout for financial incentives that can benefit our clients and support their commitment to accessibility, inclusion, and sustainability.
When we discover a new (or new to us) opportunity, you can trust that we’ll share it! As your partner in inclusive web design, we want you and your business to succeed.
We recently learned about the Disabled Access Tax Credit, and this post will explain why it exists, who it’s for, and how to take advantage of it.
Unfortunately, with the 2023 tax deadline right around the corner, it’s too late to incorporate the Disabled Access Tax Credit into the business taxes you file this year. (We wish we’d learned about it sooner!)
But bookmark this post for 2024. It could save your business up to $5,000.
About the Disabled Access Tax Credit
The Disabled Access Tax Credit exists to support small businesses in meeting the requirements of the Americans with Disabilities Act (ADA), a law that protects people with disabilities from discrimination.
“The ADA requires that title II entities (State and local governments) and title III entities (businesses and nonprofit organizations that serve the public) communicate effectively with people who have communication disabilities. The goal is to ensure that communication with people with these disabilities is equally effective as communication with people without disabilities.”
According to the CDC’s Disability & Health U.S. State Profile Data, more than 2 million adults in North Carolina, and more than a quarter of adults in the U.S., have a disability. The purpose of the tax credit is to offset the costs associated with removing barriers and improving accessibility for people with disabilities.
Eligibility for the Tax Credit
To cover business expenses related to accessibility, small businesses with a maximum deduction of $15,000 per year can claim the Disabled Access Tax Credit.
For purchases over $250 and up to $10,250, the tax credit will cover 50% of the cost, not to exceed $5,000.
Eligible small businesses are those with less than $1 million in revenue for the previous tax year, or those with 30 or fewer full-time employees.
IRS form 8826 defines “eligible access expenditures” as money spent to:
- Remove barriers that prevent a business from being accessible to or usable by individuals with disabilities;
- Provide qualified interpreters or other methods of making audio materials available to hearing-impaired individuals;
- Provide qualified readers, taped texts, and other methods of making visual materials available to individuals with visual impairments; or
- Acquire or modify equipment or devices for individuals with disabilities.
How to Claim Your Small Business Tax Credit
First, determine which of your expenses meet the criteria above.
Accessible website updates should fall under “removing barriers that prevent a business from being accessible to or usable by individuals with disabilities,” but we recommend consulting your accountant or tax advisor to confirm.
Then, fill out and submit IRS Form 8826 with your tax return!
Additional Information and Resources
Below are links to the resources we referenced for this blog post.