As part of The SOS Agency’s commitment to helping our clients thrive, we want to shine a light on a valuable tax incentive that can make a big difference for businesses – especially those focused on accessibility and inclusivity: The Disabled Access Credit.
What is the Disabled Access Credit?
The Disabled Access Credit is a tax credit designed to help small businesses cover the costs of making their operations more accessible to individuals with disabilities. This is an incentive provided by the IRS to encourage businesses to invest in accessibility improvements, ensuring that people with disabilities can fully participate in the workforce and enjoy the services businesses provide.
Who is Eligible for the Disabled Access Credit?
This tax credit is available to small businesses with fewer than 31 full-time employees and gross receipts of $1 million or less in the previous year. The credit applies to businesses that incur expenses to make their physical locations, goods, or services more accessible to people with disabilities.
What Expenses Can Be Covered?
The Disabled Access Credit can help cover a wide range of costs associated with accessibility. Some examples of eligible expenses include:
- Modifying existing facilities to make them accessible, such as installing ramps or widening doorways.
- Providing accessible parking spaces or signage.
- Purchasing equipment or services that improve accessibility, such as adaptive technology or specialized software for employees or customers.
- Hiring interpreters for communication with customers who are deaf or hard of hearing.
For businesses in the interpreting and accessibility fields, such as ours, the credit may be especially useful for investing in services or technology that can help improve communication and meet the needs of customers with disabilities.
How Much Can You Claim?
The Disabled Access Credit allows businesses to claim up to $10,250 in qualifying expenses. Here’s how the credit breaks down:
- If your business has expenses up to $250,000, you can receive a maximum credit of $10,250.
- The credit is 25% of the first $10,000 of qualifying expenses, for a total of up to $2,500.
- For businesses with gross receipts of less than $250,000, the total amount of expenses eligible for the credit may be increased.
How to Apply for the Disabled Access Credit
You will need to file IRS Form 8826, which is specifically designed for this purpose. The form can be filed along with your regular business tax return. Be sure to keep detailed records of any expenses related to accessibility improvements, as the IRS may request supporting documentation.
Why It Matters for Your Business
Making your business more accessible positions you as a company that values inclusivity and diversity. By taking advantage of the Disabled Access Credit, businesses can improve their physical spaces, services, and reputation, all while receiving financial support to offset the costs.
For businesses in sectors such as education, healthcare, or public services, where communication accessibility is crucial, this credit can be a game-changer in ensuring equal access for all customers, employees, and community members.
