Business Tax Incentives

If you own or operate a business, or you are looking for work, you should be aware of four tax incentives for businesses to help persons with disabilities. They are:

• Deduction for costs of removing barriers to the disabled and the elderly--This is a deduction a business can take for making a facility or public transportation vehicle more accessible to and usable by persons who are disabled or elderly. See chapter 8 in Publication 535, Business Expenses.
• Disabled access credit--This is a tax credit for an eligible small business that pays or incurs expenses to provide access to persons with disabilities. The expenses must be to enable the eligible small business to comply with the Americans with Disabilities Act of 1990. See the instructions for Form 8826, Disabled Access Credit, for more information.
• Work opportunity credit--This is a tax credit for businesses that hire individuals from certain targeted groups. One targeted group consists of vocational rehabilitation referrals. These are individuals who have a physical or mental disability that results in a substantial handicap to employment. See the instructions for Form 5884, Work Opportunity Credit, for more information. (At the time this publication was printed, this credit was set to expire for individuals who begin work for an employer after December 2001. However, Congress was considering legislation that would extend the credit. See Publication 553, Highlights of 2001 Tax Changes, for more information.)
• Empowerment zone employment credit--This is a tax credit for businesses that hire individuals who both live and work in an empowerment zone such as certain areas of New York City, Chicago, Atlanta, Los Angeles, Philadelphia, and Washington, D.C. Empowerment zones and the tax credit are explained in Publication 954, Tax Incentives for Empowerment Zones and Other Distressed Communities.

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