Tax Credit Guide for Hiring Employees with Disabilities
September 02, 2022
Employer Guide to Tax Credits for Hiring Employees with Disabilities
Amid the ongoing workforce shortage, businesses are finding it more challenging than ever to hire talented workers. One source of talent employers should consider is people with disabilities. By recruiting, hiring, and retaining these individuals, businesses can give themselves a competitive edge and demonstrate their commitment to inclusion.
Tax incentives: Businesses that make structural adaptations or other workplace accommodations for employees with disabilities may be eligible for certain tax incentives.
Go deeper: The U.S. Chamber of Commerce's Employer Guide To Tax Credits For Hiring Employees With Disabilities details three federal tax credits, and what employers need to know. Here is a brief overview:
1. The Work Opportunity Tax Credit (WOTC): is available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment.
2. The Disabled Access Credit: provides a non-refundable credit of up to $5,000 for small businesses that incur expenditures for the purpose of providing access to persons with disabilities.
3. 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
Amid the ongoing workforce shortage, businesses are finding it more challenging than ever to hire talented workers. One source of talent employers should consider is people with disabilities. By recruiting, hiring, and retaining these individuals, businesses can give themselves a competitive edge and demonstrate their commitment to inclusion.
Tax incentives: Businesses that make structural adaptations or other workplace accommodations for employees with disabilities may be eligible for certain tax incentives.
Go deeper: The U.S. Chamber of Commerce's Employer Guide To Tax Credits For Hiring Employees With Disabilities details three federal tax credits, and what employers need to know. Here is a brief overview:
1. The Work Opportunity Tax Credit (WOTC): is available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment.
2. The Disabled Access Credit: provides a non-refundable credit of up to $5,000 for small businesses that incur expenditures for the purpose of providing access to persons with disabilities.
3. 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
