The Disabled Access Credit, available under IRC Section 44, provides eligible small businesses a tax credit of up to $5,000 per year for costs incurred to improve accessibility for disabled persons. Despite its straightforward requirements, the credit is one of the least commonly claimed in the tax code.
Who Qualifies
An eligible small business has gross receipts of $1M or less or 30 or fewer full-time employees in the preceding year. Eligible access expenditures include removing architectural barriers, providing sign-language interpreters, acquiring accessible software or hardware, and producing materials in accessible formats.
How the Credit Is Calculated
The credit is equal to 50% of eligible access expenditures between $250 and $10,250 for the year—a maximum credit of $5,000. The expenses must be for bringing the business into compliance with the Americans with Disabilities Act. The credit is nonrefundable but can be carried back one year or forward 20 years.
Key Takeaways
- Credit is 50% of eligible accessibility costs between $250 and $10,250—maximum $5,000 per year.
- Available to businesses with $1M or less in gross receipts or 30 or fewer full-time employees.
- Most ADA compliance costs qualify—physical, digital, and communication accessibility all count.
