Did you know that small businesses can get a tax credit for making their websites more accessible? Improving website accessibility helps customers with disabilities and the costs associated with the improvements may be tax-deductible.
Here’s a great breakdown of this tax credit and how it works.
What Is the ADA Tax Credit?
The Disabled Access Credit (IRS Form 8826) is a government incentive to help small businesses cover the costs of making their physical locations and websites accessible to people with disabilities. If your business earns $1 million or less per year or has 30 or fewer full-time employees, you may qualify.
How Much Can You Get?
- The credit covers 50% of accessibility-related expenses between $250 and $10,250 per year.
- This means the maximum credit you can receive is $5,000 per year.
- Businesses must spend at least $250 on eligible improvements to qualify.
What Expenses Qualify?
The tax credit applies to physical and digital accessibility upgrades. For websites, this includes:
- Making sure your site works with screen readers.
- Adding captions to videos.
- Improving navigation for people using keyboards.
- Ensuring text and background colors have enough contrast for easy reading.
- Fixing other barriers that prevent people with disabilities from using your site.
Why Is Website Accessibility Important?
Making your website accessible isn’t just about following the law—it also:
- Helps more customers use your website.
- Prevents lawsuits related to ADA non-compliance.
- Makes your site easier to use for everyone.
- Can improve SEO and search rankings.
Learn more about making your website accessible in our insight: “Is your website accessible for all users?”
How to Claim the ADA Tax Credit
After you make accessibility improvements to your website, be sure to save all of your receipts and records. Work with your accountant to make sure you fill out the correct forms.
Watch This Video to Learn More!
The tax credit is a win-win: it makes your website more welcoming to all visitors and helps your business save money. If you want to learn more, check out the full article on AccessiBe’s blog.