Work Opportunity Tax Credit

The Federal Government offers tax incentives to encourage the employment of people with disabilities and to promote the accessibility of public accommodations.

The Internal Revenue Code includes several provisions accessible to people with disabilities. The following is some general information about three of the most significant tax incentives. Businesses should check with their accountant or tax advisor to find out whether they are eligible to take advantage of these incentives, or visit the Internal Revenue Service’s website, www.irs.gov, for more information. Accountants or tax advisors should also be consulted regarding similar state and/or local tax incentives.

Work Opportunity Tax Credit (IRS Code Section 51)
Employers who hire certain targeted low-income groups, including individuals referred from vocation and rehabilitation agencies and individuals receiving Supplemental Security Income (SSI) may be eligible for a one-time tax credit of up to $2,400 for each qualifying employee who works at least 400 hours during the tax year. Additionally, a maximum credit of $1,200 may be available for each qualifying summer youth employee. For certain employees who were long term welfare recipients, tax credits of up to $3,500 the first year and $5,000 the second year, are available.

Architectural/Transportation Tax Deduction (Internal Revenue Code Section 190)
This deduction of up to $15,000 is available to businesses of any size for the costs of removing barriers for people with disabilities, including the following: providing accessible parking spaces, ramps, and curb cuts; providing wheelchair-accessible telephones, water fountains, and restrooms; making walkways at least 48 inches wide; and making entrances accessible.

Small Business Tax Credit (Internal Revenue Code Section 44: Disabled Access Credit)
Small businesses with either $1,000,000 or less in revenue or 30 or fewer full-time employees may take a tax credit of up to $5,000 for the cost of providing reasonable accommodations such as sign language interpreters, readers, materials in alternative format (such as Braille or large print), the purchase of adaptive equipment, the modification of existing equipment or the removal of architectural barriers.