The Tax Benefits of Web Accessibility: ADA Tax Credits

While the core of web accessibility is, of course, promoting inclusion, there are other benefits that come with it. We already detailed how accessibility in eCommerce can help prevent cart abandonment and boost sales. Today, we want to talk about another benefit of web accessibility: the ADA tax credit. What is it? How does it work? Who qualifies? Let’s dive in!

What is the ADA Tax Credit?

The Americans with Disabilities Act (ADA) Tax Credit is a federal tax incentive in the U.S. designed to help small businesses comply with the ADA by making their facilities, websites, and digital content accessible to people with disabilities. The tax credit allows them to earn back part of the overall cost they put into accessibility.

Who Qualifies?

The ADA tax credit applies to businesses that invest in having accessible websites. This includes homepage adjustments, site structure, live chat support, copy, and content. Specifically, it applies to small businesses with gross receipts of $1 million or less or that have fewer than 30 full-time employees in the previous tax year. If your business follows one of those two qualifications, you can apply!

Which Costs Does It Cover?

The ADA tax credit covers expenditures made to remove physical and digital accessibility barriers. The following accessibility-related expenditures are currently covered under the ADA tax credit:

• Web accessibility solutions or tools that optimize websites
• The hiring of sign language interpreters
• The purchase of adaptive equipment
• The production of accessible formatting on printed materials (e.g. braille, large print, audiotape, computer diskette)
• The removal of architectural barriers in facilities or vehicles (e.g., installing ramps or accessible restrooms)
• Fees for consulting services

Credit Amount

The tax credit covers 50% of eligible accessibility expenditures, with a maximum limit of $10,250. There’s no credit for the first $250, so the highest credit receivable is $5,000.

How to Claim It?

Once you confirm your business is eligible, you have to fill and file IRS Form 8826 to apply. It has to be attached to your yearly tax return and sent alongside it.

1. Confirm your business is eligible using the Tax Incentives for Improving Accessibility fact sheet
2. Complete IRS Form 8826 and submit it with your tax return
3. Before filing, don’t forget to consult with a CPA or tax professional
   

To learn more about ADA Tax Credit and web accessibility in general, you can visit accessiBe’s website. Don’t hesitate to contact our team for more information on how to make your website more accessible with the help of our partner, accessiBe. Also, we have a Q&A coming up about Web Accessibility on April 24th. Stay tuned to register soon!