US Tax Credits for Hiring People with Disabilities
Work Opportunity Tax Credit (WOTC)
Overview
The WOTC provides tax credits to employers who hire individuals from targeted groups, including people with disabilities.
Credit Amounts
| Category | First-Year Wages | Maximum Credit |
|---|---|---|
| Vocational Rehabilitation Referral | Up to $6,000 | $2,400 |
| SSI Recipient | Up to $6,000 | $2,400 |
| Long-term TANF Recipient | Up to $10,000 | $9,000 (over 2 years) |
Eligibility Requirements
- Employee must work at least 120 hours
- Must be certified by state workforce agency
- Apply within 28 days of start date
Disabled Access Credit (Section 44)
For Small Businesses
Covers 50% of eligible access expenditures between $250 and $10,250.
Maximum credit: $5,000 annually
Eligible Expenses
- Removing barriers
- Providing interpreters
- Acquiring adaptive equipment
- Producing accessible formats
Barrier Removal Deduction (Section 190)
For All Businesses
Deduct up to $15,000 annually for removing architectural and transportation barriers.
Combining Credits
Businesses can combine these incentives:
- Claim Disabled Access Credit (50% of $10,000 = $5,000)
- Deduct remaining costs under Section 190
- Claim WOTC for each eligible hire
Resources
- IRS WOTC Information: irs.gov/wotc
- Job Accommodation Network: askjan.org