Useful Links:
IRS.gov
Help For Hurricane Victims
News Essentials
What's Hot
News Releases
IRS - The Basics
IRS Guidance
Media Contacts
Facts & Figures
Around The Nation
e-News Subscriptions
The Newsroom Topics
Multimedia Center
Noticias en Español
Radio PSAs
Tax Scams/Consumer Alerts
The Tax Gap
Fact Sheets
IRS Tax Tips
Armed Forces
Latest News
IRS Resources
Compliance & Enforcement News
Contact Your Local IRS Office
Filing Your Taxes
Forms & Instructions
Frequently Asked Questions
Taxpayer Advocate Service
Where to File
IRS Social Media
|
Issue Number: Tax Tip 2021-183
Tax benefits of making a business accessible to workers and customers with disabilities
Businesses that make structural adaptations or other accommodations for employees or customers with disabilities may be eligible for tax credits and deductions.
Here’s an overview of the tax incentives designed to encourage employers to hire qualified people with disabilities and to off-set some of the costs of providing accommodations.
Disabled access credit The disabled access credit is a non-refundable credit for small businesses that have expenses for providing access to persons with disabilities. An eligible small business is one that earned $1 million or less or had no more than 30 full-time employees in the previous year. The business can claim the credit each year they incur access expenditures.
Barrier removal tax deduction The architectural barrier removal tax deduction encourages businesses of any size to remove architectural and transportation barriers to the mobility of people with disabilities and the elderly. Businesses may claim a deduction of up to $15,000 a year for qualified expenses on items that normally must be capitalized.
Businesses claim this deduction by listing it as a separate expense on their income tax return. Also, businesses may use the disabled tax credit and the architectural/transportation tax deduction together in the same tax year if the expenses meet the requirements of both sections. To use both, the deduction is equal to the difference between the total expenses and the amount of the credit claimed.
Work opportunity tax credit The work opportunity tax credit is available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. This includes people with disabilities and veterans. The maximum amount of tax credit for employees who worked 400 or more hours of service is:
- $2,400 or 40% of up to $6,000 of first year wages, for qualifying individuals.
- $9,600 or 40% of up to $24,000 of first year wages for certain qualified veterans.
A 25% rate applies to wages for individuals who work at least 120 hours but less than 400 hours for the employer.
More information: Form 8826, Disabled Access Credit Form 5884, Work Opportunity Credit Form 3800, General Business Credit Instructions for Form 3800, General Business Credit
Share this tip on social media -- #IRSTaxTip: Tax benefits of making a business accessible to workers and customers with disabilities. https://go.usa.gov/xedxb
Back to Top
Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov.
This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.
|