How Will a Business Benefit from Accessibility Improvements?
Untapped Customer Base
There are roughly 53 million adults living with a disability in the United States. That's about one-fifth of the population that requires accessible resources to navigate their daily life. These individuals are working, moving, and spending money. Considering that people with disabilities often go places with non-disabled family members and /or friends, demand for accessible public locations (businesses, parks, museums, doctors’ offices, events, etc.) amount to a considerable portion of industry. Yet, many public locations remain inaccessible to people with disabilities. Either through lack of awareness, or by negligence, many businesses make simple mistakes that shut themselves off from serving millions of potential customers. Accessibility can broaden target demographic and ultimately give a competitive edge.
IRS Tax Credits and Deductions
To assist businesses with complying with the ADA, Section 44 of the IRS Code allows a tax credit for small businesses and Section 190 of the IRS Code allows a tax deduction for all businesses. States may offer similiar incentives.
The tax credit is available to businesses that have total revenues of $1,000,000 or less in the previous tax year or 30 or fewer full-time employees. This credit can cover 50% of the eligible access expenditures in a year up to $10,250 (maximum credit of $5000). The tax credit can be used to offset the cost of undertaking barrier removal and alterations to improve accessibility; providing accessible formats such as Braille, large print and audio tape; making available a sign language interpreter or a reader for customers or employees, and for purchasing certain adaptive equipment.
The tax deduction is available to all businesses with a maximum deduction of $15,000 per year. The tax deduction can be claimed for expenses incurred in barrier removal and alterations.
To learn more about the tax credit and tax deduction provisions:
Download IRS Form 8826 for the tax credit for small businesses
Go to the Internal Revenue Service Web Site
Department of Justice ADA Information Line.
