Financial Incentives for Hiring People with Disabilities
The primary reason businesses should hire people with disabilities is because the individual is a good match for a specific business need. However, by hiring people with disabilities, there are a number of financial incentives that businesses may qualify for. In the process of assisting people with disabilities to obtain employment, One-Stop staff may wish to make employers aware of these financial incentives. It may be helpful for One-Stop staff to obtain copies of the publications and materials on these financial incentives, to distribute to employers.
ADA Small Business Tax Credit
Businesses with 30 or fewer employees or $1,000,000 or less per year in total revenue can receive a tax credit for the cost of accommodations provided to an employee (or customer) with a disability. This credit covers 50% of eligible expenditures up to $10,000 (maximum credit per year of $5000). For additional information, contact the Internal Revenue Service.
Web site: www.irs.ustreas.gov
Voice: 800-829-1040; TDD: 800-829-4059
Publications (request publications 535 and 334 which cover ADA deductions & credits) - Voice: 800-829-3676; TDD: 800-829-4059
WOTC & WtW Tax Credits
Work Opportunity Tax Credit
WOTC is available to employers for hiring individuals from economically disadvantaged backgrounds. Employers can receive a tax credit of up to $2,400 per individual hired. Many people with disabilities meet the criteria for WOTC, including all recipients of Supplemental Security Income (SSI) and all clients of state vocational rehabilitation agencies.
Welfare-to-Work Tax Credit
If a person with a disability is a recipient of Temporary Aid to Needy Families (TANF) at the time of hire, the employer can receive a federal tax credit for up $8,500 per individual hired.
Additional information on these tax credits can be obtained from the U.S. Department of Labor: http://www.doleta.gov/programs/wotcdata.cfm. WOTC state and regional contacts can be found at:http://wdr.doleta.gov/contacts
WOTC and WtW tax credit request forms and state contact information can also be obtained by calling 877-828-2050 (a toll-free number). This Fax-On-Demand service allows access to WOTC/WtW request forms via Fax by using a touch-tone telephone or a fax machine. Up to two documents may be requested per call. Once you call this service, simply follow the instructions and enter the document number (listed below) that corresponds to the form or information needed.
#1 - System Index of Information
#101 - The Regional Contact Address Directory
#102 - The State Contact Address Directory
#103 - IRS Form 8850
#104 - ETA Form 9061
#105 - Brochure for Employers
IRS Form 8850 can also be downloaded from www.irs.ustreas.gov, or by calling: 800-829-1040