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Small Business Tax Tips

With tax season upon us, many small business owners may be interested to know that there are tax incentives to assist with hiring costs as well as making a business accessible to people with disabilities, as not only employees but also customers.

Private-sector businesses that hire certain individuals with disabilities may be eligible for the Work Opportunity Tax Credit (WOTC). This tax credit provides employers with a credit of up to $2,400 per new adult hire if the individual is part of one or more targeted groups, including vocational rehabilitation customers and Supplemental Security Income (SSI) recipients. For employees who are qualified Veterans with disabilities, this credit is doubled. To qualify to claim the credit, an employer must hire a certified job candidate. For more information about the WOTC, including details on employee certification, see the U.S. Department of Labor's Office of Disability Employment Policy fact sheet on the WOTC.

Private-sector businesses that make structural adaptations or other accommodations for employees or customers with disabilities may be eligible for additional tax incentives. The Small Business Tax Credit (IRS Code Section 44, Disabled Access) allows businesses that earned $1 million or less in the past year or had 30 or fewer full-time employees to take an annual tax credit of up to $5,000 for a variety of accessibility expenditures. The Architectural/Transportation Tax Deduction (IRS Code Section 190, Barrier Removal) allows business of all sizes to take an annual deduction of up to $15,000 for expenses such as creating accessible parking; installing ramps and curb cuts; making telephones, water fountains and restrooms accessible; and widening walkways. It may also be used for vehicle adaptation.

Small businesses that meet the criteria for the Small Business Tax Credit may use it and the Architectural/Transportation Tax Deduction together if the expenses incurred qualify. For more information about these tax incentives and their requisite forms, please see the IRS Web site. For more information about the benefits of hiring and making a business accessible to people with disabilities, visit the Employer Assistance and Resource Network (EARN), a service of the U.S. Department of Labor's Office of Disability Employment Policy.

Interested in what ODEP does and why? Join us for a webchat with Assistant Secretary Kathleen Martinez on Thursday, April 8 at 2:45 p.m. EDT.