Financial and Tax Incentives
Business Tax Credits & Deductions for employment of individuals with Disabilities:
Businesses interested in hiring persons with disabilities can qualify for important tax credits if they meet certain requirements. Tax discounts vary from obtaining a 50% return on a minimum investment of $250 to a max of $10,000.
To facilitate employment opportunities for people with IDD, the federal government offers two main programs that help business ease their transition to a more inclusive workforce.
The first program is the Work Opportunity Tax Credit. To be eligible, this program requires that the new employee have received Social Security Income (SSI) benefits within 60 days prior to being hired.Once the employer hires the new worker, they should proceed to filing IRS Form 8850.
The second program form the federal government is the “Disabled Access Credit” which is a tax credit opportunity provided by the IRS and available to small businesses that incur expenditures for providing access to persons with disabilities. To be eligible, the business must have a preceding tax year that did not exceed $1 million in revenue or more than 30 employees. If the employer meets one of these requirements, they can proceed to filing the following IRS Form 8826.
Several states also offer resources that might not be tax related, but support for businesses for hiring IDD individuals. For more information, please visit Employment Incentives.
Employer incentives for hiring individuals with disabilities:
There are some programs that can help businesses hire people with IDD which do not necessarily benefit the business directly but instead benefit the employee. Employers who hire persons with disabilities help them qualify for other tax benefits that make them better and more stable employees.
The Achieving a Better Life Experience (ABLE Act) allows persons with disabilities to create tax-free savings to cover qualified expenses such as education, housing, and transportation. The bill would supplements, but does not supplant, benefits provided through private insurances, the Medicaid program, the supplemental security income program, the beneficiary’s employment, and other sources.
For more information:
- Tax Benefits for Businesses Who Have Employees with Disabilities
- The Economics of Disability and Accommodation
- Work Opportunity Tax Credit (WOTC)
- United States Access Board Advancing Full Access and Inclusion for all