Tax credits and hiring incentives

In today’s highly competitive global market, the bottom line is the most important factor for business owners and employers. Every business owner and organization is looking for a critical advantage over the competition. Offering a solid return on investment for stakeholders, maximizing profits and limiting expenses are high priorities.

To gain this advantage, business owners and employers seek the right opportunity to affect the bottom line. DRS can show you how financial incentives can help your business employ people with disabilities and develop a progressive and proactive approach to ensuring accessibility for employees and customers with disabilities.

There are three federal tax incentives available to assist employers with the cost of accommodations for employees with disabilities and to assist with the cost of making their place of business accessible to employees and to customers with disabilities.

  • Work Opportunity Tax Credit: Federal tax credit for employers who hire employees with disabilities through DRS. The credit applies to the first $6,000 of wages paid. (IRS Form 8850)
  • The Disabled Access Tax Credit: Geared toward eligible small businesses to meet any increased expenses incurred in complying with the Americans with Disabilities Act. The allowable amount of the tax credit is equal to 50 percent of the expenditures in excess of $250, but not more than $10,250. (IRS Form 8826 — Disabled Access Credit, or Part 1, Line 1 of Form 3800 — General Business Credit)
  • The Barrier Removal Deduction: A business may deduct up to $15,000 per tax year for making its premises or public transportation vehicles more accessible. (Title 26, IRS Code, Section 190)