The ADA Tax Credit (IRS Form 8826) Explained for Small Business

By Heath Marter · 2026-10-26

Illustration of a tax form with a checkmark, a calculator, a stack of coins, a small storefront and a laptop showing an accessibility symbol

Accessibility work costs money, and for a small business every dollar counts. What many owners don't know is that the federal tax code has offered a credit for some accessibility costs since 1990. It's called the Disabled Access Credit, and it's claimed on IRS Form 8826. This post explains in plain English who can use it, how the numbers work, and what to ask your tax preparer, especially if you're thinking about website accessibility.

A quick note up front: I'm not a tax professional, and this isn't tax advice. Think of it as a starting point for a better conversation with the person who prepares your return.

What the Disabled Access Credit is

The Disabled Access Credit comes from Section 44 of the Internal Revenue Code. It was created to help small businesses cover the cost of making their goods and services usable by people with disabilities, in line with the Americans with Disabilities Act (ADA).

A credit is different from a deduction. A deduction lowers the income you're taxed on. A credit lowers the tax itself, dollar for dollar. That makes a credit worth more than a deduction of the same size. The Disabled Access Credit is part of the general business credit, which has its own rules for how much you can use in a year and how leftovers carry to other years. Your preparer will handle that part.

Who qualifies

According to the Form 8826 instructions, an eligible small business is one that, for the preceding tax year, either:

had gross receipts of $1 million or less, or
had no more than 30 full-time employees.

You only need to meet one of those two tests, not both. The IRS counts an employee as full time if they worked at least 30 hours a week for 20 or more weeks in the year. Gross receipts are reduced by returns and allowances. Related businesses under common control are generally treated as one business, so you can't split a larger company into pieces to qualify.

You also have to choose to take the credit by filing Form 8826 with your return for that year. It isn't applied automatically.

How the math works

The credit equals 50% of your eligible access expenditures for the year that are more than $250 and up to $10,250. The first $250 doesn't count, and anything above $10,250 doesn't add to the credit. That's where the $5,000 maximum comes from: half of the $10,000 between those two amounts.

Here are a few simple examples:

You spend $1,250. Subtract the first $250, which leaves $1,000. Half of that is a $500 credit.
You spend $4,250. Subtract $250, which leaves $4,000. The credit is $2,000.
You spend $15,000. Only the amount between $250 and $10,250 counts, so the credit tops out at $5,000.

There's one more rule to know. The IRS calls it the denial of double benefit. The part of your costs that produces the credit can't also be deducted as a business expense or used for another credit. Your preparer will make sure the same dollars aren't counted twice.

What counts as an eligible expense

The Form 8826 instructions describe eligible access expenditures as reasonable and necessary amounts paid to comply with the ADA. They list four kinds:

Removing barriers that keep a business from being accessible to or usable by people with disabilities.
Providing qualified interpreters or other ways of making audio materials available to people who are deaf or hard of hearing.
Providing qualified readers, recorded texts and other ways of making visual materials available to people with vision disabilities.
Buying or modifying equipment or devices for people with disabilities.

The ADA.gov tax incentives page gives everyday examples: widening a doorway, installing a ramp, providing a sign language interpreter, and offering printed material in large print, audio or Braille. One limit to note: barrier-removal costs tied to a facility first placed in service after November 5, 1990, don't qualify under the first category.

Illustration of a folder of receipts, a magnifying glass over a checklist, and a tax form with a coin, connected by dotted arrows — Keep the paperwork, review it with your preparer, then decide whether to claim the credit.

Does website accessibility work count?

This is the question most owners ask, and the honest answer is that the IRS doesn't say. The form and its instructions were written around physical spaces, interpreters, alternate formats and equipment. They don't mention websites, apps or online services.

Some tax professionals see website work, such as adding captions to videos or making content usable with a screen reader, as fitting the "making visual or audio materials available" categories. Others are more cautious. Because it isn't clearly settled, treat any credit for website costs as something to confirm, not something to assume. Bring your invoices and a short description of what each one paid for, and let your preparer decide how it fits your situation.

Whatever the tax answer, the work itself is worth doing. Clear headings, alt text, keyboard access and readable contrast help every visitor. If you're not sure where your site stands, our 10 quick accessibility fixes is a practical place to start.

The separate Section 190 deduction

There's a second federal incentive that's often mentioned alongside the credit. Under Section 190 of the tax code, businesses of any size can deduct up to $15,000 a year for removing architectural and transportation barriers in their facilities or vehicles. It's aimed at physical changes like ramps, accessible restrooms and parking, not websites.

According to ADA.gov, an eligible small business can use both incentives in the same year when the costs qualify under both sections. For example, if a qualifying project costs more than $10,250, the business might take the $5,000 credit and then deduct the difference between what it spent and the credit it claimed, within the Section 190 limit.

Keep good records

Whether you end up claiming the credit or not, a little organization goes a long way. For each accessibility expense, keep:

the invoice or receipt and the date you paid it,
a sentence on what the work was and who it helps (for example, "captions added to 12 product videos"),
before-and-after evidence, such as a scan report or photos, and
any accessibility statement or plan you published.

Those records help at tax time, and they also show customers and partners that you're making steady, good-faith progress. Our accessibility statement generator can help with the last item.

A note on tools and widgets

If you're comparing accessibility products, keep expectations realistic. A toolbar or widget can give visitors helpful controls, like bigger text or higher contrast, but on its own it doesn't make a site conform to accessibility standards. We wrote about that in Can a widget alone make a site accessible? If you're weighing options, our accessibility tool comparison lays out what different products do, with sources.

Where to start

Run a free scan of your website to see your top issues.
Write down what fixing them would cost, and keep the paperwork.
Ask your tax professional whether any of it qualifies for Form 8826 this year.
Keep an eye on deadlines and rules that affect your industry. Our post on the DOJ Title II web rule deadlines covers the public-sector side.

This article is general information, not legal advice. Tax rules can change, so check IRS.gov for the latest version of Form 8826 before you file. When you're ready, run a free scan of your site to see where to begin.

Frequently asked questions

How much is the ADA tax credit worth?

It equals 50% of eligible access costs between $250 and $10,250 in a tax year, so the most you can claim is $5,000 a year.

Does my business qualify?

Generally yes if, in the prior tax year, you had $1 million or less in gross receipts or no more than 30 full-time employees. You only need to meet one of the two tests.

Can website accessibility costs qualify?

The IRS doesn't specifically address websites. Some costs may fit the credit's categories, so ask your tax professional before counting on it.

What's the difference between the credit and the Section 190 deduction?

The credit lowers your tax directly and is for small businesses. The Section 190 deduction lowers taxable income by up to $15,000 a year for removing physical barriers in facilities or vehicles, and any size business can use it.

Which form do I file?

The credit is claimed on IRS Form 8826, Disabled Access Credit, attached to your tax return.

Comparing tools? See our accessibility widget comparison.

Sources

Disclaimer: This article is general information, not legal advice. Laws and dates can change. A toolbar alone doesn't make a website conform; we help reduce risk and improve access.