Disabled Access Credit • IRC Section 44

Improve Accessibility. Review Whether Qualifying Costs Could Generate Up to a $5,000 Credit.

Accessibility improvements can involve physical barriers, communication methods, equipment, devices, and other accommodations that help people with disabilities access your business. Eligible small businesses that incur qualifying access expenditures may be able to claim the federal Disabled Access Credit of up to $5,000 for the year.

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SEC 44

Disabled Access Credit

Federal tax credit • Form 8826

Eligible Access Expenditures $10,250
Less Statutory Amount − $250
Amount Subject to 50% Credit $10,000
Maximum Credit $5,000

Illustrative maximum-credit calculation. The Disabled Access Credit is nonrefundable and subject to the applicable Section 44 and general business credit rules. Ordinary technology purchases do not qualify merely because they are new or more accessible.

Small Business Eligibility

Could Your Business Qualify?

A business may satisfy the small-business size requirement for the Disabled Access Credit if it meets either of these tests for the preceding tax year. The expenditure itself must still qualify under Section 44.

$1 Million or Less Gross receipts for the preceding tax year did not exceed $1 million.
30 or Fewer Full-time employees during the preceding tax year.
Meet Either Size Test

For this credit, the IRS generally treats an employee as full time when employed at least 30 hours per week for 20 or more calendar weeks during the year. Claiming the credit also requires the applicable election and reporting, generally through Form 8826.

Accessibility Improvements

What Types of Costs Should Be Reviewed?

Section 44 focuses on eligible access expenditures made for the purpose of providing access to individuals with disabilities. The specific purpose, facts, documentation, and type of expenditure matter.

01

Accessible Equipment & Devices

Costs to acquire or modify certain equipment or devices for individuals with disabilities may qualify when they meet the applicable requirements. The accessibility purpose should be clearly supported by the facts and documentation.

02

Accessible Communication Methods

Certain costs for qualified interpreters, readers, taped texts, or other methods of making audio or visual information accessible to individuals with hearing or visual impairments may qualify.

03

Barrier-Removal Improvements

Certain expenditures made to remove barriers that prevent a business from being accessible to or usable by people with disabilities may qualify, subject to the specific Section 44 requirements and limitations.

04

Technology & Digital Projects

Technology and digital accessibility projects can be worth reviewing, but they should not be treated as automatically eligible simply because a website, software system, or customer experience becomes more accessible. Qualification depends on whether the expenditure fits Section 44 rules.

Modernize With Purpose

Improve Accessibility With the Tax Treatment in Mind

Accessibility projects can improve the customer experience, support employees, and remove barriers inside your business. When a project also meets the requirements for an eligible access expenditure, a portion of the cost may generate a federal tax credit.

Better Customer Access Reduce barriers that make it harder for individuals with disabilities to access or use your business.
Accessible Equipment Review equipment or devices acquired or modified specifically to improve accessibility.
Accessible Communication Evaluate costs associated with making audio, visual, or other information available through qualifying accessibility methods.
Potential Tax Savings If an expenditure meets Section 44 requirements, part of the qualifying cost may generate the Disabled Access Credit.
An Important Distinction

Not Every Technology or Accessibility Upgrade Creates a Tax Credit

The purpose and nature of the expenditure matter. TaxCap reviews the underlying project and documentation before treating a cost as potentially eligible for the Disabled Access Credit.

General Business Upgrade

Modernization Alone Is Not Enough

Buying new computers, replacing ordinary software, upgrading a point-of-sale system, or redesigning a website should not be treated as automatically eligible merely because the new system is newer or easier to use.

Potential Eligible Access Expenditure

The Accessibility Purpose Changes the Analysis

Expenditures specifically incurred to remove qualifying barriers, provide qualifying accessible communication methods, or acquire or modify equipment or devices for individuals with disabilities may warrant Section 44 review.

Section 44 Calculation

How the Disabled Access Credit Is Calculated

The credit generally equals 50% of eligible access expenditures above $250, with the amount of expenditures used in the calculation limited so that the maximum credit is $5,000 for the tax year.

$10,250 Eligible Expenditures

Illustrative amount required to reach the maximum credit before the statutory calculation.

− $250 Statutory Amount

The first $250 of eligible access expenditures is not included in the 50% calculation.

× 50% Credit Percentage

The qualifying amount used in the calculation is multiplied by 50%.

$5,000 Maximum Credit

The Disabled Access Credit itself is limited to $5,000 for the taxable year.

A business does not need to incur $10,250 of eligible expenses to potentially receive a credit. Smaller amounts of qualifying expenditures may generate a smaller credit. The amount ultimately usable may also be affected by the general business credit rules and the taxpayer's specific circumstances.

Accessibility Meets Tax Strategy

You Made the Improvement. TaxCap Helps Review the Tax Treatment.

Business owners often see accessibility projects simply as operating or improvement costs. TaxCap reviews the underlying expenditures and supporting documentation to identify items that may warrant further analysis under the Disabled Access Credit rules.

1

Review the Improvements

We review invoices, equipment or device purchases, accessibility-related modifications, contractor costs, communication accommodations, and other supporting records.

2

Identify Potential Eligible Costs

We help separate ordinary technology, maintenance, repair, and operating costs from expenditures that may fit the eligible-access categories under Section 44.

3

Calculate the Potential Credit

When expenditures are determined to be eligible, TaxCap applies the applicable Section 44 calculation and considers the relevant tax limitations.

4

Document & File

We help organize the supporting records and prepare the applicable Form 8826 reporting as part of the business's federal tax filing process.

A Modern Review Process

A More Organized Way to Review Accessibility Expenditures

TaxCap uses a structured digital workflow to review accessibility-related expenditures without turning the process into another administrative project for your business. Records can be gathered, categorized, reviewed, and supported through one organized process.

Digital Document Review Submit invoices, equipment purchases, contractor bills, accessibility assessments, and supporting records electronically.
Expense Classification Separate ordinary operating or technology spending from costs incurred specifically for accessibility.
Section 44 Screening Review potentially eligible expenditures against the applicable Disabled Access Credit requirements.
Organized Tax Documentation Keep supporting invoices and records organized to support the applicable tax analysis and filing.

Invested in Accessibility Improvements?

Some of those expenditures may do more than improve access to your business—they may also create a federal tax benefit. Let TaxCap review the project, purpose, supporting documentation, and related costs to determine whether any expenditures may qualify for the Disabled Access Credit.

Review My Accessibility Expenses
Eligibility and credit amount depend on the purpose and nature of each expenditure, applicable Section 44 requirements, the specific facts of the business, and applicable tax limitations. General technology, software, website, equipment, renovation, or modernization costs do not automatically qualify. The Disabled Access Credit is a nonrefundable general business credit.