During our recent webinar on the ADA tax credit, we were thrilled to see so many small business owners and digital leaders eager to learn how federal incentives can support their inclusion efforts. Many of you asked insightful questions about eligibility, how to apply the credit to web accessibility costs, and the specific requirements for IRS Form 8826.
Below, we’ve broken down the session’s highlights to help you navigate these incentives and support your commitment to a more inclusive digital world.
Missed the live session? Access a recording of the event here.
What is the ADA tax credit, and how does it help my business?
The Disabled Access Credit (IRS Section 44) is a federal tax incentive designed to help small businesses offset the costs of providing access to people with disabilities. Unlike a tax deduction, which reduces your taxable income, this is a tax credit, which provides a dollar-for-dollar reduction in the actual tax you owe.
By utilizing this credit, businesses can significantly reduce the net cost of their accessibility initiatives, making it more attainable to invest in an end-to-end accessibility platform combining the best in AI automation, human expertise, and developer tools.
Which businesses are eligible to claim the credit?
The IRS has specific criteria for "small businesses" regarding this credit. To qualify, your business must have met one of the following two conditions in the previous tax year:
- Total revenues: $1 million or less, OR
- Workforce size: 30 or fewer full-time employees.
If your business fits either of these descriptions, you may be eligible to claim the credit for expenses incurred to improve your website’s accessibility and ensure it is WCAG-adherent.
Can I use the tax credit for website accessibility costs?
Yes. As the ADA is widely interpreted to apply to websites, the IRS allows the credit for "eligible access expenditures" incurred to comply with the law. This includes costs associated with removing barriers to your digital content.
Whether you are using AI-powered remediation for your interface or engaging in expert auditing for complex workflows, these expenses typically qualify because they are "reasonable and necessary" steps to make your services accessible to individuals with disabilities.
How is the credit amount calculated, and is there a limit?
The credit is designed to be highly impactful for smaller investments. It covers 50% of your eligible accessibility expenditures for the year, with a few specific parameters:
- The first $250: This is a threshold amount that is not covered by the credit.
- The maximum expenditure: The credit applies to costs up to $10,250.
- The total credit: This results in a maximum annual tax credit of $5,000.
For example, if you spend $2,000 on accessibility solutions, you would subtract the $250 threshold and then take 50% of the remaining $1,750, resulting in an $875 tax credit.
Does this credit provide guaranteed compliance or lawsuit protection?
It is important to clarify that while the tax credit supports your financial efforts, it does not offer guaranteed compliance or guaranteed lawsuit protection. No solution "prevents lawsuits" or "avoids litigation." Instead, these incentives help mitigate legal risk by making it more affordable for businesses to conform to WCAG and support their overall compliance efforts.
Taking proactive steps—and utilizing federal credits to do so—demonstrates a commitment to inclusion and places your business in a much stronger position.
How do I actually claim the credit on my taxes?
To claim the credit, you must file IRS Form 8826 (Disabled Access Credit) with your annual tax return. We recommend keeping detailed records of your accessibility-related invoices and documentation of the improvements made to your site.
Because tax situations vary, we always suggest consulting with a tax professional or CPA to ensure you are maximizing your benefits and filing correctly according to the latest IRS guidance.
Empowering your business with end-to-end accessibility
Leveraging the ADA tax credit provides the financial flexibility to move beyond basic fixes and adopt a truly comprehensive strategy.
Investing in accessibility is more than a one-time fix; it requires an integrated strategy that scales with your growth.
accessiBe is an end-to-end accessibility platform combining the best in AI automation, developer tools, and human expertise to help you operationalize this transition:
- Automated AI technology:accessWidget helps make websites accessible and inclusive by providing an immediate layer of accessibility background remediation for UI and design-related elements.
- Developer-focused platforms:accessFlow allows your technical teams to audit, monitor, and remediate code-level accessibility within complex portals and custom applications, ensuring new updates are born accessible.
- Professional accessibility services: For intricate digital assets like complex PDF forms, media accessibility, or expert audits, accessServices provides the expert-led knowledge that automation alone may not handle.
Want to learn more? Press here to talk to an accessibility expert.
Q1. What is the ADA tax credit and how does it benefit my small business?A1. The Disabled Access Credit (IRS Section 44) is a federal tax incentive created to help small businesses cover the costs of providing access to people with disabilities. Unlike a deduction, this credit provides a dollar-for-dollar reduction in the actual tax your business owes, making it more attainable to invest in an end-to-end accessibility platform combining the best in AI automation, human expertise, and developer tools.
Q2. Which businesses are eligible to claim the credit?A2. To qualify as a "small business" for this credit, the IRS requires that your business met one of two conditions in the previous tax year: total revenues of $1 million or less, OR a workforce of 30 or fewer full-time employees. If your business fits either description, you may be eligible to claim the credit for expenses incurred to ensure your website is WCAG-adherent.
Q3. Can I use the tax credit specifically for website accessibility costs?A3. Yes. The IRS allows the credit for "eligible access expenditures" incurred to comply with the ADA, which is widely interpreted to apply to digital content. This typically includes costs for removing barriers to your website, whether you are using AI-powered remediation for your interface or engaging in expert auditing and professional services for complex workflows.
Q4. How is the credit amount calculated and is there a limit?A4. The credit covers 50% of your eligible accessibility expenditures for the year. There is a $250 threshold that is not covered, and the credit applies to costs up to $10,250, resulting in a maximum annual tax credit of $5,000. For example, a $2,000 investment in accessibility solutions would result in an $875 tax credit after subtracting the initial threshold.
