ADA Tax Incentive for Small Businesses

Earlier this year, multiple lawsuits emerged due to non-ADA compliant websites. You can read all about it here.
Recently, a tax credit makes it easier to get your website up to compliance.

The Americans with Disabilities Act (ADA) of 1990 is a civil rights law forbidding any form of discrimination against individuals with disabilities in all areas of public life or private life open to the public.

Thanks to recent changes in website accessibility requirements you could be eligible for a $5,000 credit.

The incentive is a Tax Credit* specifically geared at small businesses —defined as firms earning $1M or less in revenue a year or having 30 or less full-time employees— for architectural adaptations, equipment acquisitions, and services such as WEBSITE IMPROVEMENTS.

Through the IRS Code Section 44, Disabled Access Credit, your small business can qualify for a tax credit for increasing website accessibility and making other accommodations to make your business more usable to persons with disabilities. The policy statement “small businesses may take an annual tax credit for making their businesses accessible to persons with disabilities,” should, in most cases, cover the efforts you make to comply with Section 508 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794 (d)).

Originally enacted in 1998 by the United States Congress to cover federal agencies and then broadened to cover any organization that receives federal funding or does business with the government in January 2017, the Rehabilitation Act of 1973 requires agencies to make their electronic and information technology (EIT) accessible to people with disabilities.

The aforementioned statement and guidelines indicate that all efforts to improve website accessibility are eligible for a 50% credit for any expenditures over $250, not to exceed $10,250, for a maximum benefit of $5,000. The credit can be subtracted from your tax liability but it’s recommended that companies applying for this credit confirm eligibility with their Tax Advisor.

The maximum tax credit per year covers roughly 50%, or $5,000, of a maximum expense of $10,250. 

Businesses can claim the credit using the Disabled Access Credit on IRS Form 8826.

Make your Website Accessible by simply sending us a Contact Form Here.

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