One of our core values and strong recommendations for all of our website clients is that the websites are compliant with the fundamentals of the Americans with Disabilities Act’s requirements for websites. We use several tools, including the WAVE website checker and this Color Contrast Checker. We recommend all websites do periodic accessibility checks to ensure compliance. We recently learned that small businesses can get a tax break to make their websites accessible.
Why Make Your Website Accessible for People with Visual Disabilities?
9% of the population has color blindness. This means if your text and background colors are too similar, colorblind people cannot see the text on your website. Likewise, 1.4% of U.S. internet users use screen readers. Making your website accessible means utilizing code for screen readers to navigate your website better.
Could I Face a Lawsuit for a Non-Accessible Website?
Just as businesses are required to have handicap-accessible entrances and bathrooms, companies are also required under the Americans with Disabilities Act (ADA) to provide accessible websites. That’s because your business website is considered public under the ADA umbrella.
Website accessibility lawsuits are increasing. The American Bar Association states, “Since 2018, website and mobile app accessibility lawsuits have made up roughly a fifth of all ADA Title III filings in federal courts, which now consistently exceed 10,000 lawsuits annually.”
Who Qualifies for the ADA Website Tax Credit?
To qualify for the ADA tax credit, small businesses must gross $1M or less in annual revenue or employ 30 or fewer full-time. Use IRS Form 8826 for these tax benefits (the Disabled Access Credit), and reference Title 26, Internal Revenue Code, Section 44. The IRS offers tax credits to encourage businesses to comply with the Americans with Disabilities Act.
Unlike tax deductions, tax credits provide a dollar-to-dollar reduction in the tax you owe for the year. For example, if you owe $20,000 in taxes for the year but receive an ADA tax credit of $4,000, that would reduce your tax bill to $16,000.
You can claim half of the website modification costs, and it is capped at $10,250 total, which would be the max to spend to get a total of $5,000.
What is the Basis of Making a Website Accessible?
Foundationally, websites should have the following to be ADA Accessible:
- The right color contrast for all text and buttons
- A proper Heading structure for screen readers
- ALT text for every image describing the image for screen readers
- Providing video captions
What Paperwork is Required?
C Corporations, single-owner LLCs, and sole proprietorships can claim this ADA tax credit via IRS Form 8826, while partnerships and S Corporations report the credit on Form 3800. Claiming the tax credit is simple using IRS Form 8826 (Disabled Access Credit)
Additional Information:
We strongly recommend that you consult your tax professional about what may qualify your individual business. This article is meant to be informative and does not replace the advice of an accountant or tax professional.
Constellation Creative provides affordable websites, SEO/AEO, digital marketing, and advertising with a data-driven strategy.
Contact us today to learn how we can help your business or organization meet your growth goals.
Notice: AI was not used in writing this blog.
This blog article was written entirely by a real human being, Maresa Thompson, the old-fashioned way, with research and writing skills. AI was only used for spelling and grammar (so if you find any errors, blame the computer).