Tools for Success

Tax Incentives Tip Sheet

Just because someone wants to give you a tax credit or deduction doesn’t mean you should take it. Wait, what?

There are some great tax incentives available for employers who hire employees with disabilities, or just want to make their business more accessible to customers. Here are the three most commonly used:
Tax Tip #1

Small Business Tax Credit

The amount of tax credit is equal to 50% of the eligible expenditures in a year, over $250 and up to a maximum expenditure of $10,250. (There is no credit for the first $250 of expenditures, therefore, the maximum tax credit is $5,000.) This can be used for removing architectural barriers in existing facilities, equipment acquisitions, and auxiliary aids and services.
Tax Tip #2

Architectural/Transportation Tax Deduction/The "Disabled Access Credit"

Maximum deduction of $15,000 per year. Deduction can be used for removing barriers in existing facilities or transportation vehicles. Examples of allowable expenditures include widening doors, installing ramps, modifying vehicles, etc., and barrier removal activities must comply with applicable accessibility standards.
Tax Tip #3

Work Opportunities Tax Credit (WOTC) for Employers

An opportunity for employers. Provides a tax credit for thoses who hire certain targeted low-income groups. Tax credit of up to 40% of the first $6,000, or up to $2,400, in wages paid during the first 12 months for each new hire.

(Source: Disability.gov)