Unlocking Savings: How Digital Accessibility Tax Credits Can Benefit Your Business

Over 1 billion people* worldwide have a disability, and alongside their friends and family, they represent a *$8 trillion annual disposable income market. By making your digital content accessible, you not only tap into this vast market but also open up a myriad of revenue opportunities. Investing in digital accessibility can significantly reduce the risk of related lawsuits, enhance customer satisfaction, and attract new clientele.

The Importance of Digital Accessibility

Understanding digital accessibility is crucial today. Making digital content accessible helps ensure that everyone, regardless of their abilities, can engage with your business online. This inclusive approach is not only good ethics but also makes solid business sense in an increasingly digital world.

Tax Credits Your Business Can Leverage

Thanks to little-known tax credits, the cost of improving accessibility can be much more affordable than you might expect. Here are some of the top tax incentives available for businesses looking to enhance their digital accessibility.

1. Disabled Access Credit

The Disabled Access Credit encourages small businesses in the U.S. to comply with Title III of the ADA, which prohibits discrimination based on disability in public accommodations, including online spaces.

Businesses qualifying for this credit can receive up to 50% of expenses* (up to $10,000), minus the first $250. This means a maximum credit of $5,000. For example:
- If a business spends $4,500 on digital accessibility, it can claim $2,125.
- If it spends $11,000, it qualifies for the maximum *$5,000 credit.

2. Internal Revenue Code Section 44

Title 26 of the Internal Revenue Code, specifically Section 44, sets the framework that enables small businesses to claim a tax credit for accessibility costs, outlining which expenses qualify. Examples include:
- Removing physical or online barriers to access.
- Installing necessary technology and improving accessibility.
- The Architectural Barrier Removal Tax Deduction (IRC Section 190)* allows a deduction of up to *$15,000 annually for expenses related to removing structural barriers.

3. Does Your Business Qualify?

According to the IRS, only small businesses that earned $1 million or less* in the previous year and have *30 or fewer full-time employees are eligible for these tax credits. Even if you don't qualify for federal tax credits, consult your tax professional about potential state-level programs that could also assist.

Potential Savings on Digital Accessibility

If your business qualifies, the potential savings can be substantial. Consider this example: A company with $1 million* in revenue and 25 employees decides to invest in improving both customer-facing and internal websites.

If their managed digital accessibility service costs $8,000 per year, the tax credit could cover nearly *50% of this investment, freeing up valuable resources for further innovation.

Maximizing Your Accessibility Investment

Implementing effective digital accessibility not only taps into an underserved market of 26% of the U.S. population living with disabilities but also allows your company to reinvest savings into business development.

As you navigate the journey of improving your digital content's accessibility, consult with your financial advisor regarding Section 26 of the IRC and explore other available tax credits.

Get Started with ADA Comply Guy

Enhancing your digital accessibility is more than just good business practice; it’s a gateway to a broader customer base and new revenue streams. With ADA Comply Guy, you can access tools like the Accessibility Scanner, offering insights into your current accessibility status, and leverage automated fixes to address common issues.

When you’re ready to make a change, start with a free accessibility scan and take the essential next step on your digital accessibility journey.

This blog post is for informational purposes only and does not substitute for legal or tax advice. Always consult with a qualified tax advisor for your specific situation.