Tax Incentives

The Work Opportunity Tax Credit or WOTC, is a federal income tax credit available to employers for hiring certain target groups of workers who have consistently faced significant barriers to employment.

WOTC joins other workforce programs that incentivize workplace diversity and facilitate access to good jobs for American workers. An employer is eligible for this credit for hiring individuals from any disability category. The Tax Credit for hiring other target groups (except summer youth employees) is up to $2,400 for each new hire; 40% of qualified first year wages for those employed 400 or more hours; 25% for those employed at least 120 hours (but less than 400). This is a one-time incentive per individual hired.

Disabled Access Tax Credit (Title 26, Internal Revenue Code, Section 44) provides a non-refundable credit for small businesses that incur expenditures for the purpose of providing access to persons with disabilities.

This credit also incorporates removal of communication barriers (interpreters, reader, taped text, JAWS, or other visual adaptive technology) to acquire or modify equipment and is up to $5,000. An eligible small business is one that earned $1 million or less or had no more than 30 full-time employees in the previous year; they may take the credit each and every year they incur access expenditures. Additionally, there is a separate incentive for small businesses that is up to $10,500.

The Architectural Barrier Removal Tax Deduction (Title Revenue Code, Section 190) encourages businesses of any size to remove architectural and transportation barriers to the mobility of persons with disabilities and the elderly.

Businesses may claim a deduction of up to $15,000 a year for qualified expenses for items that normally must be capitalized. This is an annual credit available for each year that an employer removes a physical, structural or transportation barrier (must own the facility or vehicle) up to $15,000 per year.