Tax Deduction for ADA

No one (except for the most enthusiastic accountant) has ever called tax deductions exciting. Yet, businesses might be a little more enthusiastic about their effects. Thanks to tax deductions, a business can lower its overall tax liability by becoming more accessible. Some of these deductions are for physical changes to a building, like adding a ramp, but we’re going to focus on deductions for website accessibility.

Small businesses

Section 44 of the IRS code focuses on small businesses:

“[I]n the case of an eligible small business, the amount of the disabled access credit determined under this section for any taxable year shall be an amount equal to 50 percent of so much of the eligible access expenditures for the taxable year as exceed $250 but do not exceed $10,250.”

Like most tax laws, this requires some translation. In other words: This tax deduction for small businesses focuses on “eligible access expenditures.” An “eligible access expenditure” is simply an expense covered by the Section 44 rules. It can be any action taken to improve accessibility.

Digital accessibility is not explicitly mentioned, but “eligible access expenditures” include the catch-all categories “to acquire or modify equipment or devices for individuals with disabilities” and “to provide other similar services, modifications, materials, or equipment.”

A business can deduct 50 percent of such “eligible access expenditures” as long as the cost is between $250 and $10,250.

Categories: World of Accessibility