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‍Greg O’Brien, CPA, CTS
September 28, 2023

$5000 ADA Tax Credit: Learn from the #1 Tax Strategist in the US

The Americans with Disabilities Act (ADA) is a landmark legislation that ensures equal rights and opportunities for individuals with disabilities. While most people are familiar with the ADA's impact on physical accessibility, such as ramps and accessible bathrooms, many are unaware of its influence on the digital landscape. In this article, we will explore the ADA tax credit, a powerful incentive for businesses to invest in web accessibility for strategic Tax Optimization.

Understanding the ADA Tax Credit: Tax Strategist’s Insights

The ADA tax credit, listed under Section 44 of the IRS Code, is designed to support businesses that invest in accessible practices that comply with the ADA. This tax credit covers 50% of eligible access expenditures made during the previous tax year, up to a maximum expenditure limit of $10,250. However, the first $250 of expenditures is not eligible for the credit. (i.e. a maximum tax credit of $5000)

For example, let's say a business spends $490 on an accessibility solution like accessWidget. After subtracting the first $250, the remaining $240 is eligible for the tax credit. The business would receive 50% of $240, which equals $120 in credit. This means that the business would only pay $370 a year for accessWidget.

Who Qualifies for the ADA Tax Credit?

To be eligible for the ADA tax credit, businesses must meet certain criteria. The tax credit benefit is available to businesses that generated $1,000,000 or less during the year prior to filing or businesses that employ 30 or fewer full-time employees. This ensures that businesses of all sizes can take advantage of this valuable incentive. Consult a Tax Strategist or CPA near you for more in-depth information. 

Web Accessibility and the ADA Tax Credit

The ADA tax credit applies to businesses that invest in web accessibility solutions. Websites play a crucial role in today's digital world, providing information, services, and products to a wide range of users. It is essential that websites are accessible to individuals with disabilities, allowing them to navigate, interact, and engage with online content effectively.

Many accessibility practices and implementation methods are included in the list of qualifying expenditures for the ADA tax credit. These include homepage adjustments, page structure and hierarchy, live chat support, and messaging. Paid-for services such as file and media accessibility also qualify as expenditures. Connect with us now to learn more about the qualifying expenditures.  

Applying for the ADA Tax Credit

Applying for the ADA tax credit is a straightforward process. Start by reviewing the Tax Incentives for Improving Accessibility Fact Sheet, which provides important information about the tax credit. Once you have confirmed that your business is eligible, fill out Form 8826, which can be found on the IRS government website.

Form 8826 should be attached to your yearly tax return and sent alongside it. It is essential to consult with a CPA or tax strategist to ensure accuracy and compliance. They can guide you through the application process and help you determine the appropriate amount spent on accessibility efforts.

Achieving Tax Optimization Through The ADA Tax Credit

The ADA tax credit offers several significant benefits to businesses. By investing in web accessibility and achieving ADA compliance, businesses demonstrate their commitment to inclusivity and equal access. This not only benefits individuals with disabilities but also expands the potential customer base and improves the overall user experience for all users.

In addition to the positive social impact, the ADA tax credit also provides financial advantages to achieve tax-free wealth. The tax credit reduces the overall tax liability for businesses, resulting in substantial savings. These savings can be reinvested into the business or used to further enhance accessibility initiatives.

Making Web Accessibility a Priority

Web accessibility is not only a legal requirement but also a business imperative. By making your website accessible, you create an inclusive online environment that welcomes all users. The ADA tax credit serves as a powerful incentive for businesses to prioritize accessibility and reap the benefits of both compliance and tax savings.

Partnering with a tax strategist or CPA who specializes in tax optimization can provide valuable guidance in navigating the complex landscape of tax credits. They can help you maximize your tax savings while ensuring compliance with ADA regulations.


The ADA tax credit presents a unique opportunity for businesses to invest in web accessibility while reducing their tax liability. By integrating accessible practices and complying with ADA regulations, businesses create an inclusive online environment that benefits individuals with disabilities and expands their customer base.

In a world where digital accessibility is increasingly essential, the ADA tax credit provides a valuable incentive for businesses to prioritize accessibility and create a more inclusive online experience. By investing in web accessibility, businesses can unlock the benefits of tax-free wealth while making a positive impact on society. If you want more details about this, connect with us now!

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