Businesses that accommodate people with disabilities may qualify for some of the following tax credits and deductions. Access the publications and forms directly from the IRS, or talk to an accountant to see how your business might benefit.
Disabled Access Credit
The Disabled Access Credit provides a non-refundable credit for small businesses that incur expenditures for the purpose of providing access to persons with disabilities.
Architectural Barrier Removal Tax Deduction
The Architectural Barrier Removal Tax Deduction 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. Businesses claim the deduction by listing it as a separate expense on their income tax return.
Work Opportunity Credit
The Work Opportunity Credit provides eligible employers with a tax credit up to 40 percent of the first $6,000 of first-year wages of a new employee if the employee is part of a targeted group. An employee with a disability is one of the targeted groups for the Work Opportunity Credit, provided the appropriate government agencies have certified the employee as disabled.
For more detailed information, visit DEED's WOTC information here.
About Workers' Compensation and Health Care Costs
Workers' compensation rates are based solely on the relative hazards of the operation and the organization’s accident history, not on whether or not workers have disabilities.
According to 2002 U.S. Equal Employment Opportunity Commission disability statistics, 73 percent of companies report no cost increases attributable to extending health, life, and/or disability coverage to employees or their dependents with disabilities.
For more information about workers' compensation and health costs related to employees who have disabilities, visit www.dli.mn.gov and search 'work comp.' Contact the Workers' Compensation Hotline at 1-800-DIAL-DLI (1-800-342-5354) extension 2.
For consultation and support, contact your regional Disability Employment Specialist (800-328-9095).