Skip to content 
Building an accessible business isn’t just about compliance—it’s a smart financial move that reduces legal risks. Small business owners can claim up to $5,000 in tax credits through the Disabled Access Credit (DAC) to make accessibility improvements more affordable. This incentive lowers tax burdens, enhances the customer experience, and supports employees with disabilities. Investing in accessibility also ensures ADA compliance and helps businesses avoid legal risks, including lawsuits and fines.
This guide will break down the eligibility criteria, benefits and step-by-step instructions on how to claim the Disabled Access Credit to maximize your savings and create a more inclusive business environment.
What is the Disabled Access Credit?
The Disabled Access Credit is a tax credit established under the ADA to support small businesses in making their facilities and services accessible to people with disabilities. It helps offset the costs of essential modifications and accommodations that improve accessibility.
Small businesses can use the Disabled Access Credit to improve digital accessibility and create a better experience for customers and employees. This credit can help cover costs for making websites and digital platforms accessible, such as ensuring screen reader compatibility, adding alt text to images, improving keyboard navigation, captioning videos, and making documents accessible. These upgrades make online content easier to use, expand your customer base, and reduce legal risks.
Investing in digital accessibility not only enhances compliance but also strengthens brand reputation and customer loyalty. Claiming this credit allows businesses to lower expenses while strengthening their digital presence and market reach.
Eligibility Criteria for Businesses
To qualify for the Disabled Access Credit, businesses must meet the following criteria:
- Size Requirement: The business must have gross receipts of $1 million or less OR employ 30 or fewer full-time employees in the previous tax year.
- Eligible Expenses: The credit applies to expenses incurred for removing accessibility barriers, providing auxiliary aids and services and modifying business operations to accommodate individuals with disabilities.
- Exclusions: The credit cannot be used for new building construction or improvements required as part of original construction plans. It also cannot be claimed for expenses that have already been reimbursed by another source, such as a grant.
If your business meets these qualifications, you may be able to claim the Disabled Access Credit and reduce your tax liability significantly.
Benefits of the Disabled Access Credit
Taking advantage of the Disabled Access Credit provides numerous benefits beyond tax savings:
- Tax Savings – The credit covers 50% of eligible accessibility-related expenses over $250 and up to $10,250, meaning the maximum available credit is $5,000 per tax year. This can substantially lower your tax bill and free up funds for other business investments.
- ADA Compliance – Making accessibility improvements helps ensure compliance with ADA regulations, reducing the risk of legal action and fines associated with non-compliance.
- Enhancing Brand Reputation – Businesses that prioritize accessibility demonstrate social responsibility and inclusivity, which can improve their public image and attract a broader customer base.
- Increased Accessibility for Customers and Employees – Accessible businesses provide a welcoming environment for customers and employees with disabilities, improving engagement, retention and customer satisfaction.
By leveraging the Disabled Access Credit, businesses can create a more inclusive space while benefiting from financial relief.
How to Claim the Disabled Access Credit
Claiming the Disabled Access Credit is a straightforward process. Proper documentation and compliance is easy. Here’s how your business can apply:
- Complete IRS Form 8826 – To claim the credit, businesses must fill out IRS Form 8826 (Disabled Access Credit) and include it when filing their federal tax return. The form requires details on the eligible expenses incurred during the tax year.
- Maintain Proper Documentation – Businesses should keep detailed records of all expenses related to accessibility improvements. This includes invoices, receipts, descriptions of modifications and proof of payments to verify eligibility.
- Consult a Tax Professional – Tax laws can be complex, and claiming the credit incorrectly could lead to audits or penalties. It’s best to consult a qualified tax professional or accountant to ensure compliance and maximize your credit benefits.
- Pay Attention to Deadlines – The Disabled Access Credit must be claimed for the tax year in which the expenses were incurred. Make sure to file all necessary documents before the tax filing deadline to avoid missing out on this opportunity.
Disclaimer
This guide is for informational purposes only and should not be considered financial or tax advice. Tax laws are subject to change, and the application of tax credits may vary depending on your business circumstances. We recommend consulting a qualified accountant or tax professional to determine how the Disabled Access Credit applies to your specific situation.
Conclusion
The Disabled Access Credit is a valuable tool for small businesses looking to invest in accessibility while saving on taxes. By utilizing this credit, businesses can enhance their inclusivity, comply with ADA regulations and improve customer and employee experiences—all while reducing their financial burden.
Don’t miss out on this opportunity to make a meaningful impact while optimizing your tax savings. Consult your tax professional today and take the first step toward compliance and inclusion!
