Disabled Access Tax Credit: Requirements, Benefits, and How to Apply

Making a business accessible to people with disabilities is not only a legal requirement; it’s also a smart business strategy. Furthermore, it opens new opportunities for customer engagement. To support small businesses in becoming more inclusive, the Disabled Access Tax Credit (DATC) was introduced. This guide will walk you through the DATC requirements, benefits, and application process. Additionally, it shows how AccessiTREE can help make your website and digital assets accessible and compliant.

What is the Disabled Access Tax Credit?

The DATC offers a federal tax incentive to help small businesses cover the costs of providing access to people with disabilities. It aims to encourage businesses to comply with the Americans with Disabilities Act (ADA) by offering financial relief for making their facilities, products, and services more accessible.

Who is Eligible?

To qualify for the DATC, your business must meet specific criteria, including the following:

• Small Business Requirement: Your business must have earned $1 million or less in gross receipts for the previous tax year, or it must have had no more than 30 full-time employees.
• Qualified Expenses: Expenses must relate to making your business accessible to people with disabilities. This can include physical changes to your facilities, acquiring or modifying equipment, and providing accessible formats of printed materials or digital assets.

What Expenses are Covered?

Eligible expenses can include the following:

1. Removing Barriers: Costs associated with making entrances, parking spaces, and restrooms accessible.
2. Accessible Equipment: Purchasing or modifying equipment or devices to accommodate employees or customers with disabilities.
3. Communication Access: This includes providing accessible formats like Braille, large print, audio recordings, or captions for digital content.
4. Website and Digital Assets Accessibility: This involves making your website accessible for individuals with disabilities, for instance, by meeting WCAG standards.

How Much Can You Claim?

The DATC allows you to claim up to $10,000 in qualifying expenses, giving you a maximum credit of $5,000 each year. Here’s how it works:

• If your qualifying expenses reach $10,000 or more, you can then claim the maximum credit of $5,000.
• If your expenses are below $10,000, you may claim 50% of the total spent.

Benefits of the Disabled Access Tax Credit

1. Financial Relief: The credit helps reduce the costs associated with making your business accessible.
2. Improved Customer Experience: Accessible businesses can cater to a broader customer base, including people with disabilities.
3. Increased Employee Productivity: By making reasonable accommodations, you can create a more inclusive work environment that benefits everyone.
4. Legal Compliance: Reducing the risk of non-compliance with the ADA can save your business from potential legal penalties.
5. Enhanced Brand Reputation: Showing a commitment to accessibility can positively impact your brand image and attract more customers who value inclusivity.

How to Apply for the Disabled Access Tax Credit

Follow these steps to claim the DATC:

1. Determine Your Eligibility: Ensure your business meets the small business criteria (gross receipts of $1 million or less or 30 or fewer full-time employees).
2. Identify Qualifying Expenses: Make a list of the expenses incurred for accessibility improvements. Keep all receipts and documentation related to these expenses.
3. Complete IRS Form 8826: Fill out the “Disabled Access Credit” form. You will need to provide the amount of qualifying expenses and calculate the credit amount based on your expenses.
4. Submit with Your Annual Tax Return: Include Form 8826 with your federal tax return for the tax year when you incurred the expenses.
5. Consult a Tax Professional: If you’re unsure about filing details, consider seeking help from a tax advisor.

How AccessiTREE Can Help with Website and Digital Accessibility

Making your website and digital assets accessible goes beyond compliance; it provides a better experience for all users. AccessiTREE offers specialized accessibility services to make sure your digital properties are inclusive and meet ADA standards. Here’s how we can help:

1. Accessibility Audits: We conduct comprehensive audits of your website and digital assets to identify accessibility barriers and areas for improvement. This involves testing against WCAG standards and other accessibility best practices.
2. Remediation Services: After identifying issues, we provide solutions to fix accessibility barriers. These updates may include coding adjustments, content modifications, and user interface enhancements that make your site accessible to screen readers and other assistive technologies.
3. Ongoing Compliance Monitoring: Accessibility is not a one-time effort. We offer ongoing monitoring and support to ensure that your website remains compliant as guidelines evolve.

Why Choose AccessiTREE?

• Expertise in ADA Compliance: Our team has deep experience in website accessibility, understanding how to meet WCAG standards and keep your business compliant.
• Customized Solutions: We offer tailored solutions that fit your business needs, whether it’s a complete accessibility overhaul or minor adjustments.
• Comprehensive Services: Our services cover audits, remediation, and ongoing monitoring, making us a one-stop shop for all your accessibility needs.
• Commitment to Excellence: We focus on delivering top-notch service, ensuring your digital assets are accessible, compliant, and user-friendly for everyone.

Take the Next Step Towards Accessibility

The Disabled Access Tax Credit is a valuable incentive for small businesses to invest in accessibility improvements. When you make your website and digital assets more inclusive, you open the doors to a broader audience and foster an environment of equality and compliance.

Need Help Getting Started?
Reach out to AccessiTREE for a free accessibility consultation. Discover how we can help your business make impactful, compliance-driven accessibility changes. Together, we can unlock the benefits of the Disabled Access Tax Credit and improve the experience for all users.