Transcript
Note: This webinar provides general information and is not legal or tax advice. Consult a qualified CPA or tax professional about your specific circumstances.
Welcome
Josh: All right, it looks like we are ready to go. I am so glad to be here, and thank you, everyone, for joining us today. We are going to spend the next short while focusing on one specific piece of the accessibility conversation: the ADA tax credit.
Today is not about legal or tax advice. The goal is simpler and more practical. We want to help you understand how accessibility investments can show up during tax season, how the ADA tax credit fits in, and how to have smarter, more confident conversations with your CPA or finance team.
I am Josh, and I am really glad that you are here. I am going to share my story, then I will hand it over to Sapir to share hers, and then we will dive into all things ADA tax credit.
My journey was flipped upside down 21 years ago, when I was a teenager. I was on vacation at the beach when a wave picked me up in the ocean and dropped me on my head. That day, I shattered my neck and became paralyzed below my shoulders. I use a power wheelchair to get around.
I went back to school, graduated from college, and then graduated magna cum laude from law school. I have been a practicing trial attorney since 2013. This month marks five years since I joined the accessiBe family, which is amazing. I am the Community Relations Manager here at accessiBe, and I am also a proud father. I have two little kids, with one more on the way in April. Sapir, I will hand it over to you.
Meet the Speakers
Sapir: Thank you so much, Josh, and hi, everyone. Thank you for joining us today. We are sorry about the late start, but we are eager to begin the conversation and share what we know about the ADA tax credit and how it can support your web accessibility efforts.
As Josh said, my name is Sapir Yarden. I am part of accessiBe’s marketing department, and I have been with the company for about four and a half years, so I am tagging along just behind Josh.
I started in our sales department, where I spoke with customers and agency partners, similar to many of you on this call today. We may even have met before. I am here to answer your questions and hopefully clarify some of the information surrounding the ADA tax credit.
Today, I primarily work in our brand and community space, so I get to work very closely with Josh. We actually grew up about ten minutes away from one another in the Washington, D.C. area, so it is very fun that we now get to work together. Josh, should we get started?
Josh: Let’s do it.
Sapir: Awesome.
Why Accessibility Matters
Josh: When we talk about accessibility, we are not talking about a small niche group. In the United States alone, 28% of adults live with a disability. Globally, people with disabilities represent around 16% of the population.
That is a massive share of people interacting with websites, buying products, using services, and making decisions every day. Accessibility is not about serving a few extra users. It is about making sure your digital presence is open to a meaningful share of the market.
Sapir: I will add that the modifications we make to websites to support a specific user group often help a much wider community as well. Even something as simple as using plain language to support people with cognitive disabilities can benefit many other users, including people whose first language is not English or people who are unfamiliar with the steps on your website. Josh, can you add something to that?
Josh: Following accessibility best practices opens your doors to more people, not only by giving them access, but by creating better experiences. Think about public transportation. Adding accessibility also makes things easier for people pushing strollers, carrying luggage, or dealing with many other life circumstances. Accessibility is about opening doors, not closing them.
Sapir: Well said. Thank you.
Accessibility and Brand Loyalty
Josh: Beyond the size of the population, the disability community also has enormous economic influence. When people think about disability, they often think only about the individual. But the community also includes friends, family members, healthcare providers, and everyone who experiences life alongside that person.
We are talking about an estimated $8 trillion in global annual disposable income. One of the reasons it is so important to increase the conversation around accessibility is that it can support growth, improve customer experience, and build long-term brand trust.
Studies have found that the disability community is one of the most brand-loyal communities in the world. When someone with a disability is taken care of, they do not forget it. They come back as repeat customers. Too often, doors are shut. When that happens, people do not return. But when the door is open, they come back again and again.
Accessibility is not only about risk mitigation. It is about participation, opportunity, and opening your doors.
Sapir: I am thinking about our colleague Larry, who recently shared his experience of purchasing a shirt from a brand that created T-shirts with tactile Braille text, allowing him to read what was printed on the shirt. The fact that the brand went out of its way to collaborate with a blind influencer was amazing.
Then we dug a little deeper and found that the brand also uses accessWidget on its website. It was exciting to recommend a brand that truly lives by its values and is doing many things right. Not only is it making its digital assets accessible, but it is also thinking about what it sells and how to make its products more inclusive for buyers.
I am sure the brand now has a customer for life in Larry. I was already one of its customers, and I cannot wait to shop there again. That is exactly what brands want to hear from consumers: that people are excited to return.
Josh: People with disabilities are natural advocates. When an experience is good, they share that with the world. When an experience is bad, they share that too. It is much better to be on the positive side of that story.
Sapir: I completely agree.
Accessibility as a Business Investment
Josh: When organizations invest in accessibility, they often see several benefits at once. They reach new audiences and improve usability and site performance for everyone.
I use a range of adaptive devices, including voice dictation software. When I visit a website, being able to access the site is one thing. With accessWidget, I also have different profiles and customizations that give me the power – really, the superpower – to create the level of usability I need.
When I have a good experience, I come back again and again. It is about building trust with customers and partners while moving toward stronger alignment with accessibility standards and regulations.
Finally, one of the reasons many of you are here today is that certain accessibility investments may also qualify for the ADA tax credit, which we will now discuss in more detail. Sapir will walk us through what the ADA tax credit is, who is eligible, and how it works in practice.
Understanding the ADA Tax Credit
Sapir: Thanks, Josh. Some of you may already have heard about the ADA tax credit. Others may be wondering why we sent you an email about it. We are here to clarify the information.
ADA stands for the Americans with Disabilities Act, which was signed into law in 1990. At that time, websites were not as commonplace as they are today, so they were not necessarily part of the original conversation. Today, however, we are discussing how businesses may be able to claim this tax credit and offset some of the investment they are making to improve their websites.
Eligible businesses can claim up to $5,000 in tax credits per year. If you are a repeat customer or purchase accessWidget annually, this may be a tax credit you can claim year after year.
The credit covers up to 50% of qualifying accessibility-related expenditures. We will show you the calculation shortly. The credit is addressed under Section 44 of the Internal Revenue Code. We strongly recommend reviewing this information with your CPA, tax adviser, or another qualified tax professional. We know the S corporation tax deadline is approaching, and we want you to be prepared.
Eligible Accessibility Expenses
Sapir: The tax credit can cover several types of accessibility expenditures. Web accessibility has become increasingly important as compliance requirements and regulations have become more common. Qualifying expenditures may include introducing accessWidget as a solution for your website or conducting accessibility audits.
If you are pursuing a government procurement opportunity or working with contractors and need a VPAT – a Voluntary Product Accessibility Template – that may also be an accessibility-related expenditure to discuss with your tax professional.
Businesses may have many other accessibility expenses, including hiring people with disabilities, purchasing adaptive equipment, engaging accessibility consultants, hiring sign language interpreters for events, producing materials in accessible formats such as Braille, and removing architectural barriers.
At our office, we try to make everything as accessible as possible. When we need to modify something or purchase additional adaptive equipment, those costs may also be considered accessibility expenditures. Josh, are there any other examples businesses should be aware of?
Josh: Adaptive technology can include keyboards, voice dictation software, and other tools for employees with disabilities. A height-adjustable desk may also be needed for some employees.
Many employees have disabilities, even if they have not disclosed them. For those who do request support, the ADA tax credit may help businesses provide performance-enhancing technology and accommodations.
Other examples include widening doorways, making bathrooms accessible, installing automatic door-opening buttons, improving accessibility in office spaces and digital assets, and conducting accessibility audits each year. There is a real benefit to investing more in accessibility while potentially receiving a tax credit for part of that investment.
Accessibility Does Not Have to Be Expensive
Sapir: There is an important point to make here. When businesses think about their accessibility journey, they may assume it will be extremely heavy: creating plans, dedicating a large budget, investing significant time and resources, and involving many employees. Josh, what would you say to that?
Josh: It is one of the smartest investments a business can make. It welcomes more people and helps employees perform at their best.
Most workplace accommodations cost less than $500. In fact, many accommodations cost nothing at all, and those that do cost money are often $500 or less.
The more we build accessibility into our businesses, the better the experience becomes for customers and employees. It is a win across the board. You have to start somewhere. You do not know what you do not know, but once you learn more, you have the power to take the next steps and potentially claim a credit for investments you may already be making.
How the Tax Credit Works
Sapir: You are all here to learn more about how this tax credit may apply to you. Whether you are an accessiBe customer, an agency partner purchasing on behalf of clients, or simply interested in web accessibility, the credit may cover 50% of a business’s qualifying annual accessibility-related expenditures.
Qualified expenditures can total up to $10,250. The first $250 is not included. That leaves up to $10,000 in qualifying expenses, and 50% of that amount is a maximum potential credit of $5,000 per year, depending on the size of the purchase.
How do you know whether you are eligible? There are two criteria to discuss with your tax professional. A business may qualify if its revenue is under $1 million for the applicable tax year, or if it has 30 or fewer employees. I will repeat that: less than $1 million in revenue, or 30 or fewer employees.
Some of you may be from smaller organizations that appear to qualify immediately. Others may represent larger organizations and think this does not apply. In that case, consider whether you have separate entities, subsidiaries, or partner organizations that may meet the criteria. This is something to review with your CPA.
We also received a question about whether the PowerPoint will be emailed. We will send the recording and direct you to additional resources after the webinar.
Here is an example of how the calculation may work. If a business purchases a larger accessWidget license for $3,490 per year, the first $250 is excluded. That leaves $3,240 in potentially qualifying expenses. Half of that amount is $1,620.
How to Apply and Document Expenses
Sapir: We received another question: if a company earns $20 million in revenue but has only 20 employees, does it qualify? That is a good question to confirm with a CPA or tax adviser. Based on the two criteria we have discussed, it is something to bring to your tax professional.
We have spoken with many CPA and tax firms, and not every professional is familiar with this credit. We recommend referring them to Section 44 of the Internal Revenue Code.
To apply for the ADA tax credit, first confirm that the business meets the eligibility requirements. Then locate IRS Form 8826 on the IRS website, complete the one-page form, and include it with the relevant tax filing.
We also received a question about what documentation is needed from a vendor to support an ADA-related expenditure. When you work with accessiBe, you may have invoices, monthly reports, audits, and other confirmations of the work completed on your website. Client communications may also be relevant.
The more documentation you have, the better prepared you will be to review the expense with your tax adviser and confirm whether it qualifies. Keep in mind that the credit is available up to $5,000 per year. If you pay for an annual license or recurring service, you may be able to apply again in future tax years, subject to the eligibility rules.
This credit is available to qualifying U.S. businesses filing U.S. tax returns. The information is available in Section 44 of the Internal Revenue Code and on Form 8826, but we strongly encourage you to consult a tax professional for guidance based on your specific circumstances.
Josh, I have covered a lot, so I will let you summarize the main points.
Key Takeaways
Josh
I will bring it home with a quick recap. There are three big takeaways from today.
First, accessibility is a smart business decision, not simply a compliance checkbox. Second, the ADA tax credit may help reduce the cost of making that investment. Third, many businesses may already qualify without realizing it.
As long as a business satisfies one of the two criteria we discussed – $1 million or less in the prior year, or 30 or fewer full-time employees in the prior year – it may be eligible. Always confirm that with your CPA.
This is not about doing everything at once. It is about understanding your options and making informed, confident choices. I am so glad you were part of this presentation and were able to learn more about the ADA tax credit with us.
Questions and Answers
Sapir: Thanks, Josh. We are open for additional questions in the chat or the Zoom Q&A.
One question that has come up before relates to agency partners. If an agency purchases accessibility services on behalf of a client’s website, who is eligible to request the tax credit?
Based on conversations we have had with CPAs, the party that pays for the accessibility service and is not reimbursed by the client may be the party that can apply for the credit, assuming it otherwise qualifies. If an agency purchases services for multiple clients and is reimbursed for those costs, the treatment may be different and should be reviewed with a tax professional.
There are several possible arrangements when it comes to ADA-related and accessibility-related expenses. We hope this information gives you a useful starting point for a conversation with your tax provider or adviser and helps you understand how the credit may offset part of the expenditure.
Josh, are there any final points you would like to make before we end the webinar?
Closing Thoughts
Josh: I am a big believer in education and awareness. Everything we can do to show the world how to bring more accessibility into websites, storefronts, and everyday life matters.
The more we talk about accessibility, the more accessible the world becomes. That is a world that changes my life every day, and I am grateful whenever accessibility is built in.
We should also have these tax conversations with other businesses and encourage them to bring more accessibility into their work while understanding that there may be ways to save money at the same time. It is a win-win.
Sapir: My favorite point from today is that most accessibility accommodations cost $500 or less – and many cost nothing at all. When you think about making your business more inclusive, you have many options and a great deal of flexibility. Josh and I are always happy to discuss those possibilities.
For your website, that may mean using accessWidget on an annual basis so users can apply the adjustments they need. It may also include accessibility audits or VPATs for procurement processes, as well as services such as remediating PDFs or videos.
These are examples of accessibility-related expenditures to discuss with your tax professional when considering the ADA tax credit. As we move further into tax season, please do not hesitate to contact us with any questions. We will make sure you receive the recording and additional information.
Thank you to everyone who joined today’s session.
Josh: Thank you, everyone.