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Federal - Small Business Tax Credits, Section 44, Title 26 IRS Code

The "Disabled Access Tax Credit" (Title 26, Internal Revenue Code, Section 44), is a tax credit for access expenditures that are incurred in order to comply with the ADA. This enables an eligible small business to elect a nonrefundable tax credit equal to half of the expenditures for eligible accommodations that are above $250. The maximum credit a business can elect for any tax year is $5,000 for eligible expenditures of $10,250 or more.

There are three tax incentives available to help businesses off-set the cost of improving access to goods and services for both employees and people with disabilities (as defined by the Americans with Disabilities Act 1990).

1. A. Federal - Disabled Access Tax Credit: Tax credits for the purchase of equipment and/or auxiliary aids in which the primary purpose is to provide equal access to a business's goods and services.

   
   B. California - Disabled Access Tax Credit: Similar to federal tax credit, except, that under California law, allowable expenditures can not exceed $250, unlike federal which has a maximum of $10,250.

2. Federal Tax Deduction to Remove Architectural and Transportation Barriers to People with Disabilities and Elderly Individuals: To make their places of business accessible by removing barriers e.g. providing accessible parking spaces, ramps, and curb cuts.
   
   
3. The Federal Work Opportunity Tax Credit (WOTC): A tax credit that encourages employers to hire nine targeted groups of job seekers, including people with disabilities, by reducing employers' federal income tax liability.