“Tax season” and “good news” don’t naturally go together. However, there is good news for small businesses that have already invested in web accessibility: the Disabled Access Credit. The Internal Revenue Service (IRS) offers a tax credit through form 8826 to help recoup some of the cost of making your website more accessible to individuals with disabilities. If you haven’t already made your website more accessible, these tax incentives might help put ADA compliance in your web development plans this year.

What is the Disabled Access Tax Credit?

The Disabled Access Tax Credit is a tax incentive providing small businesses with gross receipts of one million dollars and less or those that employ 30 or fewer full-time employees, that have made accessibility improvements to their website. This credit can help offset the costs of those modifications and provide financial relief to small businesses working to make their spaces accessible to everyone.

Unlike tax deductions that reduce taxable income or the tax owed, a tax credit gets subtracted from the tax owed. For example, the Disabled Access tax credit covers 50% of the eligible expenditures made during the previous tax year, with a maximum limit of $10,250.

Does the Disabled Access Tax Credit cover Web Accessibility?

Yes, the Disabled Access Tax Credit covers website accessibility as web accessibility is becoming increasingly important. The Department of Justice in 2018 stated that websites are considered a place of public accommodations, Therefore, the ADA covers websites and mandates accessibility in the digital space, allowing the Disabled Access tax credit to be applied to businesses that invest in owning and operating accessible sites.

Many accessibility practices or implementation types qualify as expenditures. Still, there are several accessibility elements when calculating your annual accessibility fee. These include web accessibility solutions or tools that optimize websites. Here are some key variables to consider in your annual accessibility fee:

• Website Modifications
• Page Format and Hierarchy
• Live Chat Services
• File and Media Fixes
• Consulting Service Fees

Eligibility for the Disabled Access Tax Credit

The Disabled Access Tax Credit is available to small businesses with a maximum of $1 million in annual revenue or fewer than 30 full-time employees. The development costs associated with the necessary changes to the website to make it more accessible with the standards outlined in the ADA such as the Web Content Accessibility Guidelines (WCAG) for websites to be eligible. This includes adding alternative text to images, providing video captions, and ensuring the website can be navigated using only a keyboard.

What are the Stipulations?

The good news is that the Disabled Access Tax Credit can be applied for and earned annually. However, you can’t carry expenditures over to claim a credit exceeding the prior year’s expenditure limit. But, if the credit amount exceeds the taxes you owe, you can roll the unused credit into the following year.

The Disabled Access Tax Credit covers the following accessibility and ADA-related expenditures:

• Web accessibility & optimization
• Language interpreters
• Adaptive equipment
• Printed materials
• Elimination of physical obstacles
• General consulting

Is It a One-Time Deal?

No, in fact you can get this credit any year ADA accessibility work is done on your website.  This tax break is such a powerful incentive that many small businesses have adopted a policy of annual ADA accessibility website audit/ reviews. 

How to Apply for the Disabled Access Tax Credit

There is no need to apply, simply complete the IRS Form 8826 and submit it with your yearly tax return. In addition, it must include information about the accessibility improvements made, the expenses incurred, and the credit calculation. You can find Form 8826 on the IRS government website, where you can further research the rules and stipulations regarding the Disabled Access Tax Credit. You can also read more on the IRS Tax Credits and Deductions page on the Americans with Disabilities Act website.

Don’t forget to consult with a tax professional before you send in your comprehensive return files. If your tax professional is unaware of the Disabled Access Tax Credit, tell them the form number (8826). They can quickly fill out the form and state the amount spent on accessibility efforts, speeding up the process and ensuring it’s correct!

Web Accessibility & the Disabled Access Tax Credit

The 8826 form can be a valuable tool for small businesses that engage ADA accessibility developers to work on their websites. The 8826 Disabled Access Tax credit has made it possible for many small businesses to make ADA remediation an ongoing process to ensure the website remains accessible to all users. By making sure your website is compliant and accessible, you can help ensure that your business is reaching the widest possible audience and staying in compliance with the law.

Suppose you are a small business owner looking to make your website more accessible and take advantage of the Disabled Access Tax Credit. In that case, we encourage you to reach out and schedule a 15-minute ADA Briefing with our web accessibility experts at 216digital.

As a business owner, you have a legal and, some would argue, moral obligation to provide equal access to all users, including those with disabilities. The Americans with Disabilities Act (ADA) is a federal law that requires all businesses to provide equal access to their goods and services to individuals with disabilities. This law applies not only to physical locations but also to websites and online services, making it essential for businesses to ensure their digital presence is accessible to all users. Failure to do so can result in significant liability.

However, despite the clear benefits of having an accessible website, many businesses have yet to implement a strategy for ADA website accessibility. This article will explore why companies must develop a plan for ADA website accessibility and how.

What is Web Accessibility?

One of the main components of ADA website accessibility is ensuring that websites are accessible to individuals with disabilities. This means that websites must be usable by individuals who are blind, deaf, or have limited mobility. This includes text alternatives for visual or audio content, easy-to-use navigation, and appropriately labeled and structured forms or input fields.

Why is ADA website accessibility important?

ADA website accessibility ensures that all individuals, regardless of their abilities, have equal access to information and services on your website. This includes individuals with visual, auditory, physical, and cognitive disabilities. A website that is not accessible can prevent these individuals from accessing information, making purchases, and interacting with your business.

Additionally, the number of ADA accessibility lawsuits filed against companies has increased dramatically in recent years. Unfortunately, the trend shows no signs of slowing down, and businesses of all sizes risk being sued. Even small companies with limited resources are vulnerable, as they are often seen as easy targets by plaintiffs looking to win settlements.

Why Should Businesses Develop a Strategy for ADA Website Accessibility?

There are several reasons why you need to develop a strategy for ADA website accessibility and liability now.

Legal Compliance

The ADA requires businesses to make their websites and online content accessible to individuals with visual, auditory, physical, and cognitive impairments. By ensuring your website is accessible, you could mitigate frivolous ADA lawsuits, fines, and negative publicity.

In recent years, there has been a sharp increase in lawsuits related to website accessibility. In 2022, there were 2,387 web accessibility lawsuits filed in Federal Court and California State Court under the Unruh Act. However, industry insiders say 97% of demand letters are settled and never evolve into a lawsuit. This means plaintiffs sent more than 1,500 demand letters per week in 2022.

User Experience

By making your website accessible, you provide a better user experience for all visitors. This not only shows that you care about your customers, but it also helps you to stand out from your competitors. This includes adding alternative text for images, providing video captions, and using simple, straightforward language for all content. In addition, it helps to improve the overall usability of your website. Making it easier to navigate, and providing a better overall experience for your customers.

Brand Reputation

Having an accessible website reflects your brand’s values and commitment to inclusiveness. Demonstrating your commitment to accessibility can help improve your brand reputation and credibility, leading to increased customer loyalty and sales.

Improved Search Engine Optimization (SEO)

When you make your website accessible to people with disabilities, you are also making it easier for search engines to crawl and index your site. In addition, search engines like Google prioritize websites that are accessible and user-friendly. This can help improve your search engine rankings, increasing traffic and higher visibility for your business.

Increased Reach and Potential Customers

Making your website accessible to individuals with disabilities can increase your website traffic. According to the World Health Organization, around 15% of the world’s population lives with some form of disability. By making your website accessible, you can tap into this large and growing market that the competition might overlook. As a result, you can reach a wider audience and expand your potential customer base.

How Can Businesses Develop a Strategy for ADA Website Accessibility?

Businesses must have a strategy for implementing web accessibility and managing potential ADA website liability. This includes having a plan for responding to any possible ADA-related complaints and lawsuits. It also means having a system in place for monitoring website accessibility and making any necessary changes.

Conduct a Website Audit

 The first step in achieving ADA website accessibility is to perform an audit. This will help you to identify any areas of your website that need to be improved to meet ADA standards. You should consult a web accessibility expert to perform the audit.

While automated tools such as WAVE or Lighthouse can provide a great starting point, automated tools can only detect 30% of accessibility barriers. However, manual audits provide a more accurate assessment of website accessibility. A manual review involves evaluating a website using assistive technologies, such as screen readers, keyboard navigation, and magnifiers, to simulate the experience of individuals with disabilities.

Implement Necessary ADA Web Accessibility Updates

Once you have identified areas of your website that need to be improved, make the necessary updates. This can include adding alt tags to images, ensuring your website is navigable with a keyboard, and providing text alternatives for videos.

Train your Employees

Training your team is essential to ensure that your website remains accessible. Make sure your team understands the importance of ADA website accessibility and knows how to make updates to your website to maintain compliance. This will ensure everyone working on your website is committed to making it accessible and reducing future risks.

Regularly Monitor and Update

Businesses should regularly monitor their website to ensure that it remains accessible. ADA website accessibility is an ongoing process. As you make changes to your website and web accessibility guidelines evolve, new accessibility issues may arise. It is crucial to address these promptly.

By developing a strategy for ADA website accessibility and liability now, businesses can protect themselves and their customers. Not only will this help companies to avoid potential legal issues, but it will also help ensure that all website visitors can access and use the website. In the long run, this will help businesses build trust and loyalty with their customers and improve their overall customer experience.

In Conclusion

ADA website accessibility is not just a legal requirement, but it is also an opportunity to reach a large and growing market. By developing a strategy for accessibility now, businesses can avoid costly lawsuits, protect their reputation, and increase their website traffic. Investing in accessibility is an investment in the future of your business.

At 216digital, we understand developing a strategy for ADA Website accessibility and liability can be a beast of a project. So, why let web accessibility hijack your development backlog with all the competing website enhancements that could add value to your business? 216digital can help develop a strategy to integrate WCAG 2.1 compliance into your development roadmap on your terms. To learn more about how the ADA experts at 216digital can help build an ADA WCAG 2.1 compliance strategy to achieve ongoing, real-world accessibility on your terms, schedule an ADA Strategy Briefing.