The Federal Government provides several tax incentives to encourage businesses to comply with the Americans with Disabilities Act (ADA). Many business owners are unaware that these tax credits even exist. Below are three Federal Tax credits eligible to small business owners and employers in the state of South Carolina.
ADA Small Business Tax Credit
Businesses with 30 or fewer employees or $1,000,000 or less per year in total revenue can receive a tax credit for the cost of accommodations provided to an employee (or customer) with a disability. This credit covers 50 percent of eligible expenditures up to $10,000 (maximum credit per year of $5000). For additional information, contact the Internal Revenue Service.
Work Opportunity Tax Credit (WOTC)
WOTC is available to employers for hiring individuals from economically disadvantaged backgrounds. Employers can receive a tax credit of up to $2,400 per individual hired. Many people with disabilities meet the criteria for WOTC, including all recipients of Supplemental Security Income (SSI) and all clients of state vocational rehabilitation agencies.
Welfare-to-Work (WtW) Tax Credit
If a person with a disability is a recipient of Temporary Aid to Needy Families (TANF) at the time of hire, the employer can receive a federal tax credit for up $8,500 per individual hired.
Additional information on these tax credits can be obtained from the U.S. Department of Labor.
The Architectural/Transportation Tax Deduction
The Architectural/Transportation Tax Deduction, IRS Code, Section 190, Barrier Removal, is often viewed as being specific to making businesses wheelchair-accessible. However, the credit can help businesses to remove physical barriers for people who are blind, for example, by adding Braille and large print signage.