Web accessibility is becoming a bigger focus for businesses of all sizes. Not only is it about doing the right thing ethically, but it also helps avoid legal issues. Still, many small businesses hesitate to make accessibility improvements because they worry the costs will be too much. What many don’t realize is there’s a tax credit designed to ease those expenses: the Disabled Access Credit, often called the Web Accessibility Tax Credit. This lesser-known benefit can lighten the financial load while encouraging inclusivity. Let’s break down this tax credit, how it works, and how small businesses can use it to set themselves up for long-term success.

Understanding the Web Accessibility Tax Credit

The Disabled Access Credit, outlined in Section 44 of the IRS Code, is a federal tax credit available to eligible small businesses. It’s there to help cover costs related to becoming ADA-compliant. While the ADA is often associated with physical accommodations like wheelchair ramps or accessible restrooms, it also applies to digital spaces. That means the credit can be used for website updates to meet the Web Content Accessibility Guidelines (WCAG) —the technical standards for making digital content inclusive.

For small businesses, this tax credit can make a big difference. Whether you’re hiring someone to do an accessibility audit or purchasing software to improve your site’s functionality, those costs can add up fast. By using the Disabled Access Credit, you can make these improvements much more affordable, creating a welcoming online space for all users.

Why the Accessibility Tax Credit Is a Hidden Gem

Despite its benefits, the Disabled Access Credit isn’t widely used. Part of the reason is that many small business owners simply aren’t aware it exists. Others assume it only applies to physical accessibility upgrades, like installing ramps or widening doorways. But the IRS has made it clear—digital accessibility counts too.

This means countless small businesses miss out on a financial boost that could:

• Offset Accessibility Costs: The credit covers up to 50% of eligible expenses, so you can make improvements without straining your budget.
• Invest in Long-Term Benefits: Accessibility often leads to better user experiences, which helps keep customers coming back.
• Reduce Legal Risks: Proactively addressing accessibility can protect your business from costly lawsuits and reputational damage.

With websites being such a vital part of modern business, making yours accessible can open doors to new audiences and opportunities.

Eligibility Criteria: Does Your Business Qualify?

Not every business can take advantage of the Web Accessibility Tax Credit. Here’s a quick look at the criteria:

• Small Business Status: Your business must have annual gross receipts of $1 million or less from the previous year OR employ 30 or fewer full-time employees.
• Qualifying Expenses: Costs related to removing barriers for people with disabilities—such as making your website WCAG-compliant—are covered.
• Non-Profit Exclusion: Unfortunately, nonprofits don’t qualify for this credit.

If you meet these requirements, you’re in a great position to benefit. Even if you’re close to the revenue or employee threshold, it’s worth double-checking your records to make sure you don’t miss out.

Qualifying Expenses: What Can the Accessibility Tax Credit Cover?

The Disabled Access Credit can cover 50% of eligible expenses over $250, up to a maximum of $5,000 annually. Here are some common expenses that qualify:

• Accessibility Audits: Costs for professional evaluations, including both automated and manual testing of your website.
• Website Modifications: Updates like improved navigation, keyboard functionality, and adding alt text for images.
• Assistive Technology: Tools like screen readers or captioning software for users with disabilities.
• Training: Employee training on accessibility best practices to maintain compliance over time.

For example, if you spend $7,000 on a full accessibility overhaul, subtracting the first $250 leaves $6,750. Applying the 50% credit gives you $3,375 back—a significant savings that can go a long way for a small business.

Steps to Claim the Web Accessibility Tax Credit

Claiming the Disabled Access Credit might sound tricky, but it’s simpler than you think:

1. Talk to a Tax Professional: An accountant or tax advisor familiar with small business tax incentives can confirm your eligibility, guide you through documentation, and suggest the best approach to claiming the credit.
2. Keep Track of Expenses: Save all receipts and invoices for accessibility-related costs, from software to consultant fees.
3. File IRS Form 8826: Attach this form to your annual tax return to claim the credit. Ensure all figures are accurate and supported by the documentation you’ve collected.
4. Consider a Phased Approach: If your total accessibility costs exceed $10,250 in a single year, you may wish to spread your projects across multiple tax years to maximize the annual $5,000 credit. This strategy ensures you continually invest in accessibility without losing out on potential credits.

How Accessibility Enhances Your Business

Some business owners see accessibility as just another expense, but it’s actually a smart investment. Here’s why:

• Reach a Bigger Audience: Around 28.7% of U.S. adults have some disability. Making your site accessible means you’re welcoming a large and often overlooked customer base.
• Improve SEO: Accessibility best practices—like clear headings and descriptive alt text—can also boost your search engine rankings.
• Enhance User Experience: Clear navigation, labeled buttons, and proper color contrast benefit all users, not just those with disabilities.
• Prepare for the Future: ADA-related lawsuits are on the rise. Staying on top of accessibility now can save you legal headaches later.

By prioritizing accessibility, you’re not just checking a box—you’re making a strategic move that benefits your customers and your business.

Practical Tips for Getting Started

If you’re ready to take the plunge into web accessibility and leverage the available tax credit, here are some steps you can take right now:

1. Perform an Accessibility Audit: Use either free automated tools or hire an accessibility consultant to identify your biggest compliance gaps. This will give you a clear roadmap of where you need to make improvements.
2. Set a Budget: Determine how much you can invest and calculate how much of that can be offset by the Disabled Access Credit.
3. Partner with Experts: From web developers specializing in accessible design to training programs that teach your staff how to update content accessibly, a range of expert services can expedite and enhance your compliance efforts.
4. Monitor Progress: Web accessibility isn’t a one-and-done task. Standards evolve, and so do websites. Continually test, update, and refine to stay compliant and maintain a user-friendly experience.

Final Thoughts: A Win-Win Opportunity

The Web Accessibility Tax Credit is a powerful tool that can help small businesses build inclusive, user-friendly websites without taking on the entire financial burden. From improving customer satisfaction to staying compliant with ADA regulations, accessibility has benefits that go far beyond the tax credit.

Ready to get started? Schedule an ADA briefing with 216digital today. Let us help you create an accessible website that strengthens your brand, expands your audience, and positions your business for success.