Employers of Disabled Persons
There are several credits and deductions available for employers of disabled persons. To learn more about these options, click the links below.
Disabled Access Credit
Eligible small businesses can use this tax credit for expenses paid or incurred for the purpose of complying with the Americans with Disabilities Act of 1990.
Is my small business eligible for this credit?
An eligible small business is any business or person that had gross receipts for the preceding tax year that did not exceed $1 million or did not have more than 30 full-time employees for the preceding tax year.
Which expenses are eligible for this credit?
Eligible expenses include:
- Removal of certain architectural, communication, physical or transportation barriers;
- Providing interpreters to people who are deaf or have a hearing impairment;
- Providing readers or taped texts to people who are blind or who have a visual impairment; and
- Acquiring or modifying equipment or devices for people with disabilities.
Who is considered a person with a disability?
For purposes of this credit a person with a disability is someone who:
- Has a physical or mental impairment that substantially limits one or more major life activities;
- Has a record of such an impairment; or
- Is regarded as having such an impairment.
What amount can be claimed?
This tax credit equals 50 percent of the first $10,000 of eligible expenses that exceed $250. Thus, the maximum allowable credit would be $5,000.
How do I claim this credit?
Complete and attach Form 8826, Disabled Access Credit, to tax return for the tax year in which the expenses were paid or incurred.
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Deduction for Removing Barriers to the Disabled and Elderly
The deduction for removing barriers to the disabled and elderly allows businesses of any size to deduct expenses paid or incurred as a result of removing barriers to the disabled and elderly.
What expenses are eligible for this deduction?
In order for the expense of the removal of barriers to be eligible it must meet the standards of the Architectural and Transportation Barriers Compliance Board. See Publication 535, Business Expenses, for examples of expenses that meet these standards.
What amount can be deducted?
Up to $15,000 of eligible expenses can be deducted for the tax year.
How do I claim this deduction?
The deduction should be claimed on the tax return for the tax year the expenses were paid or incurred. The deduction should be identified as a separate item.
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