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Disability Employment Policy Resources by Topic

Tax Incentives for Employers

Private-sector businesses that make structural adaptations or other accommodations for employees or customers with disabilities may be eligible for tax incentives.

  • Work Opportunity Tax Credit (WOTC) — This credit is available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. On December 18, 2015, President Obama signed the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) that extends and modifies the WOTC Program and the Empowerment Zones for a five-year period from December 31, 2014 to December 31, 2019.
  • Small Business Tax Credit — This 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.
  • Architectural/Transportation Tax Deduction — This 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 Internal Revenue Service (IRS) website.

For more information about structural accessibility and job accommodations for people with disabilities, contact the Job Accommodation Network (JAN), a free service of ODEP. JAN also offers a fact sheet on tax incentives.