By: Andrew Uy & Ryan Mink, CPA
The Disabled Access Credit allows a credit for small businesses that have expenses related to making their business more accessible to people with disabilities. This includes website accessibility improvements. The credit provides for up to $5,000 in tax credits for a small business. As a reminder, a tax credit reduces your tax liability dollar for dollar.
This tax credit is available to eligible small businesses. The credit is 50% of eligible access expenditures that exceed $250 but do not exceed $10,250 for a taxable year. A business may take the credit each year that it makes an eligible access expenditure.
Eligible small businesses must have:
$ 1 million or less in gross receipts for the preceding tax year
30 or fewer full-time employees during the preceding tax year
Eligible access expenditures are expenses that enable the business to comply with the applicable requirements of the ADA (Americans with Disabilities Act). Examples include expenses necessary to:
- remove architectural, communication, physical, or transportation barriers that prevent a business from being accessible to, or usable by, individuals with disabilities;
- provide qualified readers, taped texts, and other effective methods of making materials accessible to people with visual impairments;
- provide qualified interpreters or other effective methods of making orally delivered materials available to individuals with hearing impairments;
- acquire or modify equipment or devices for individuals with disabilities; or
- provide other similar services, modifications, materials, or equipment.
Expenditures that are not necessary to accomplish the above purposes are not eligible. Expenses in connection with new construction are not eligible. To be eligible for the tax credit, barrier removals or the provision of services, modifications, materials or equipment must meet technical standards of the ADA Accessibility Guidelines where applicable.
If you are looking to make accessibility improvements or are planning to upgrade your website and want to ensure that ADA requirements are met to facilitate this credit please reach out to your local S&S representative for additional information.