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Smart Business: Accessibility Tax Benefits

06/02/2025 | Deborah Dietz

Tax Credits for Businesses Providing Accommodations for Disabilities
By Deborah Dietz

Did you know your business can get rewarded for being accessible?

Making your workplace more inclusive isn’t just the right thing to do—it can also offer financial benefits. There are two key federal tax incentives available for businesses that remove barriers and provide accommodations for people with disabilities. Whether you’re improving your building, updating your website, or providing auxiliary aids, these tax benefits can help offset the costs.

1. What Tax Incentives Are Available?

There are two main federal tax benefits designed to encourage businesses to improve accessibility:

  • Disabled Access Credit – A credit to help small businesses offset costs related to accessibility.
  • Architectural Barrier Removal Tax Deduction – A deduction for removing physical barriers in buildings or transportation.

2. What Is the Disabled Access Credit?

This non-refundable credit helps small businesses pay for making their services or facilities more accessible to individuals with disabilities.

  • Who Qualifies? Businesses with gross receipts of $1 million or less or fewer than 30 full-time employees.
  • How Much? The credit covers 50% of expenses over $250—up to a maximum of $10,250, meaning a potential credit of up to $5,000 per year.
  • What’s Covered? Expenses like:
    • Removing barriers
    • Providing sign language interpreters or other auxiliary aids
    • Modifying equipment for better accessibility
  • How to Claim: Use IRS Form 8826 when filing your federal tax return.

3. What Is the Architectural Barrier Removal Tax Deduction?

This deduction is available to businesses of any size and encourages the removal of architectural and transportation barriers.

  • Deduction Limit: You can deduct up to $15,000 per year for eligible expenses.
  • What’s Covered? Projects like:
    • Installing ramps
    • Widening doorways
    • Adapting vehicles for accessibility
  • How to Claim: Include it as a separate line item on your tax return.

4. Can You Use Both Incentives?

Yes! A business can use both the credit and the deduction in the same tax year—if the expenses qualify. Just note: the deduction amount must be reduced by the amount of any Disabled Access Credit you claim.

Bottom Line:
Investing in accessibility not only opens your business to more customers and talent—it also comes with valuable tax benefits. If you’re planning any upgrades or accommodations, make sure to explore these credits and deductions.

Want help figuring out what counts or how to get started? Disability Insights can help you build a plan for accessibility that works for your business and your bottom line.