Tax Incentives for Web Compliance? Yes, Please
- Author: CommonAccess
Note: The information regarding tax incentives is for reference purposes only and not intended to provide legal tax advice, as we are not accounting professionals. Please be sure to consult a tax advisor or CPA for any specific information regarding your business.
In 1990, the Americans with Disabilities Act (ADA), a civil rights law that prohibits discrimination again people with disabilities, was enacted. Since then, businesses have been required to ensure that their facilities, goods, and/or services are accessible to anyone with an impairment.
In an effort to encourage compliance with the ADA, the US government offers several tax incentives to businesses, which many business owners and employers are often unaware of.
Per IRS Code Section 44, the Disabled Access Credit, was created to help small businesses with their web accessibility compliance as well as other accommodations to make their business easily accessible to people with impairments. To qualify as a business, a company must employ thirty (30) or less full-time employees OR have $1,000,000 or less in gross receipts in the previous tax year.
The code states that “small businesses may take an annual tax credit for making their businesses accessible to persons with disabilities,” this credit covers up to 50% of the eligible expenditures over $250 in a year up to $10,250 (max credit of $5000), that can be applied towards accessibility barriers, such as those with a company website.
Additionally, businesses may also qualify for a tax deduction to make audio materials or qualified interpreters available users with hearing impairments, and purchase/modify equipment needed by people with disabilities.
Section 190 of the IRS Code allows a tax deduction for all businesses. The Architectural Barrier Removal Tax Deduction can be claimed for expenses incurred in accessibility barrier removal and alterations of any architectural and/or transportation obstacles to the mobility of impaired people. A business can claim a deduction of up to $15,000 per year for qualifying expenses.
Many States offer varying, additional tax credits and deductions to assist businesses with ADA compliance. Contact your State’s tax office to learn more about incentives in your business area.
For additional information regarding ADA related tax incentives, contact your tax advisor and refer to any of the following:
• Internal Revenue Service (IRS): Questions: 800-829-1040 Voice; 800-829-4059 TTY https://www.irs.gov/
• Publications and forms: 800-829-3676 Voice; 800-829-4059 TTY. www.irs.ustreas.gov/formspubs(link is external)
• U.S. Department of Justice (DOJ) Disability Rights Section: Questions: 800-514-0301 Voice; 800-514-0383 TTY. www.ada.gov
• Council for Community and Economic Research (C2ER): 703-522-4980 Voice; firstname.lastname@example.org. http://www.stateincentives.org/
• ADA Information Line (documents, questions, referrals, and fax delivery): 800-514-0301 Voice; 800-514-0383 TDD http://www.usdoj.gov/crt/ada/adahom1.htm
If your website does not comply with current ADA standards or if you’re unsure contact a member of our team today. To learn more about web accessibility, read our article "What is Web Accessibility".
US DOJ: Information and Technical Assistance on the Americans with Disabilities Act, IRS Tax Credits, and Deductions, https://www.ada.gov/taxcred.htm
Find Law: Tax Incentives Packet on the Americans with Disabilities Act, https://corporate.findlaw.com/litigation-disputes/tax-incentives-packet-on-the-americans-with-disabilities-act.html