Tax Incentives

Three federal tax incentives are available that may help employers cover the cost of accommodations and workplace accessibility.

1.  The Small Business Tax Credit (IRS Code, Section 44) Disabled Access Credit

The Disabled Access Credit allows small businesses to take an annual tax credit for making their businesses accessible to people with disabilities. 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.
The credit is available every year and can be used for a variety of costs, including accommodations for individuals who are blind or visually impaired, such as:

• Readers
• The purchase of adaptive equipment or the modification of equipment
• The production of print materials in Braille, audiotape, or large print
• The amount of the tax credit is equal to 50% of the eligible access expenditures in a year that exceed $250 but are not more than $10,250; thus, the maximum allowable credit is $5,000.

To take advantage of this tax credit, you must attach IRS form 8826 to your tax return.

2.  Work Opportunity Tax Credit (WOTC)

Employers may claim a tax credit of up to 35% of the first $6,000, or up to $2,400 in wages paid during the first 12 months for each new hire when they hire individuals from groups that are considered to face barriers to employment, including individuals with disabilities. 

If you wish to take advantage of this tax credit, It is important to begin the process on or before an individual’s first day of employment in order to properly verify and document an individual’s disability status with the state.  Completed forms must be received by the Illinois Department of Employment Security (IDES) no later than the person’s 21st day of employment; IDES can be reached at:

Illinois Department of Employment Security
33 South State Street (8-S)
Chicago , IL   60603
Phone: (312) 793-2620, Ext. 230
Fax: (312) 793-1778 or (312)793-5151
www.ides.state.il.us

3. The Architectural/Transportation Tax Deduction (IRS Code, Section 190)

This credit allows a business of any size to expense up to $15,000 per year for “qualified architectural and transportation barrier removal expenses.”  In addition to improving wheelchair accessibility, this credit can also help businesses to remove physical barriers for people who are blind or visually impaired, for example, by adding Braille and large print signage.

To take advantage of this credit, the IRS suggests that you claim the deduction on your income tax return (partnership return for partnerships) for the tax year the expenses were paid or incurred, identifying the deduction as a separate item. If you make this election, you must maintain adequate records to support your deduction.

For up-to-date information about these and other tax incentives, please visit www.irs.gov or contact your local IRS office at 1-800-829-4933.

Employer Resources

The Chicago Lighthouse assists individuals who are blind or visually impaired in all facets of finding and keeping a job.  Our staff also works with both private and public sector employers to make recommendations for appropriate adaptations when working with a current or potential employee who is blind or visually impaired.  We can serve you with the following programs:

Adaptive Technology
(312) 997-3671
Ensures that workers who are blind or visually impaired have the necessary equipment and technical support to be successful on the job.   See our Adaptive Technology Center Fact Sheet for more details.

National Helpdesk Hotline
(888) TCL-0080
Assists individuals who are already using computer-based adaptive technology applications and who are in need of technical assistance.  See our HelpDesk Fact Sheet for more details.

Employment Services
(312) 997-3647
Your partner in hiring and retaining qualified workers who are blind or visually impaired.  See our Employment Services brochure for more details.

Job Retention
(312) 997-3647
If one of your employees experiences a vision loss that is impacting his or her job, we can help.  See our Employment Services brochure for more details.

Where can I go for help?

American Foundation for the Blind
www.afb.org
(800) AFB-LINE
AFB offers a wealth of information about blindness and visual impairments as well as detailed resources for employers and visually impaired employees.

Job Accommodation Network
www.jan.wvu.edu
(800) 526-7234
A service of the President’s Committee on Employment of People with Disabilities, JAN is a consulting service providing information and concise examples of simple ways to accommodate people with disabilities on the job.

ADA Information Site
www.ada.gov
(800) 514-0301
This site addresses questions and answers about the many legal ramifications of the ADA , including standards for accessible design, the ADA mediation process, and helpful information for small businesses considering working with employees with disabilities.

Equal Employment Opportunity Commission
www.eeoc.gov
(800) 669-4000 (info) or (800) 669-3362 (materials)
The EEOC provides regulations, technical manuals, and other information relating to employment requirements under the ADA .

DBTAC: Great Lakes ADA Technical Assistance Center
www.adagreatlakes.org
(800) 949-4232
This service provides information, materials, technical assistance and training on the ADA .  They serve both people with disabilities and employers.

Illinois Division of Rehabilitation Services (DRS)
www.dhs.state.il.us/ors
(800) 843-6154
DRS helps individuals with disabilities prepare for and find employment and can assist employers with paying for accommodations. and understanding tax incentives.

The Chicago Lighthouse does not give specific tax advice.  Please consult your tax advisor for credits or deductions which may be available to you or your specific business, as relates to information presented in this brochure.