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Attention 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.  Americans with disabilities are contributing members of the workforce and valuable customers and these tax credits and deductions offer additional incentives 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 limitations.

Forms can be found on www.IRS.gov.

The Massachusetts Office on Disability (MOD) offers training to employers and businesses on their obligations under state and federal disability laws, including the Americans with Disabilities Act (ADA), that address disability rights and non-discrimination. Contact us for more information.

Please note, the purpose of this post is to provide those interested with information regarding various tax incentives and credits. This post should not take the place of a professional tax advisor or accountant.

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