Do you want to save money every year? There are two ways:
- Every business can use the Section 190 accessibility deduction of up to $15,000 per year. This deduction applies to removing architectural & transportation barriers. Typically that means physical improvements to a location (you should still remind your customers about this because they might have done this). It can also apply if the process of removing the barrier was by making services or information accessible online that previously required going somewhere in person.
- Small businesses (under $1M in annual revenue or under 30 employees) covers half of your web accessibility expenses, up to $5,000. This can be used for any accessibility work.
And yes, if you qualify for the small business deduction, you can use both of these incentives.
The ADA Tax Credit (Section 44 of the IRS Code) allows small businesses to claim 50% of their web accessibility expenses, up to $5,000 per year with a maximum expenditure limit of $10,250.
There is also a work opportunity tax credit for hiring individuals from certain groups, which can include minorities, people with disabilities & veterans.
Information about all three tax credits is on the IRS website.
What Is the ADA Tax Credit?
The Disabled Access Credit is designed to help small businesses comply with the Americans with Disabilities Act (ADA) by providing a tax break for accessibility improvements.
This includes making websites more accessible for users with disabilities. You can claim half of their web accessibility expenses over $250 and up to $10,250, with a maximum credit of $5,000 annually.
Are You Eligible?
To qualify for the ADA tax credit, you must meet one of these conditions:
- They must have $1 million or less in annual revenue. (According to data from the U.S. Census Bureau and other sources, small businesses with revenue under $1 million make up 90% to 95% of all U.S. businesses – 25 to 28 million businesses.)
- They employ 30 or fewer full-time employees. (Roughly 93-95% of all U.S. businesses have under 30 employees – 28 to 30 million businesses.)
What Expenses Qualify?
- Website modifications to meet Web Content Accessibility Guidelines (WCAG) standards.
- Consulting fees for accessibility audits.
- Physical changes, like installing ramps or providing accessible printed materials (e.g., Braille or large print).
Why Web Accessibility Matters
An accessible website expands your client’s reach to millions of potential customers who may otherwise struggle to use their site. Google rewards accessible websites with better SEO rankings, increasing their online visibility. By ensuring that your clients’ sites conform with accessibility guidelines, you’re helping them improve customer experience and grow their business.
AI systems also reward accessible sites. They require significantly fewer credits to process than complex JS powered sites. As a result, AI skips hard to process sites and prefers easy to process.
Related Resources:
- Tax Benefits of Making a Business Accessible to Workers and Customers with Disabilities
- ADA.gov Guidance on Web Accessibility and the ADA
You don’t have to do it alone. EasyA11yGuide is here to help you make accessibility a priority for every website and a reality for every website visitor. Schedule a free Strategy Session to learn more.