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stock photo of glasses, pen and calculator on top of tax preparation formsAttention Businesses and employers: Did you know there are tax credits and deductions available to employ persons with disabilities and to make accessibility improvements?

The vast majority of businesses and employers have distinct obligations under the Americans with Disabilities Act (ADA) to ensure equal employment opportunities and to remove accessibility barriers for persons with disabilities.  Not only are Americans with disabilities contributing members of the workforce and valuable customers, but there are also incentives in the form of tax credits and deductions for meeting ADA obligations.

The Work Opportunity Credit is a tax credit of up to 40% of the first $6,000 of first year wages of a new employee who is part of a targeted group. Targeted groups include employees with disabilities and certain unemployed veterans.  Employers must obtain certification that an individual is a member of the targeted group before claiming the credit by filing Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their respective state workforce agency within 28 days after the eligible worker begins work. Employers claim the credit on Form 5884, Work Opportunity Credit.

The Disabled Access Credit is a non-refundable credit for small businesses that incur expenditures for the purpose of providing access to persons with disabilities. Refer to Form 8826, Disabled Access Credit.

The Barrier Removal Tax Deduction is a deduction of up to $15,000 per year for the removal of architectural and transportation barriers for individuals with disabilities and elders with mobility issues.

Also, a Tax Credit was created by the IRS to help small businesses cover ADA-related “eligible access expenditures.” A business that for the previous tax year had either revenues of $1,000,000 or less or 30 or fewer full-time workers may take advantage of this credit.

Forms can be found on www.IRS.gov.

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