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Apr 7, 2021
Small businesses can now receive up to $5,000 in IRS tax credits for improving website accessibility, benefiting users and bottom lines.
With the rise of digital-first interactions, creating an accessible website is no longer optional. It’s necessary to reach broader audiences, avoid legal risk, and build a more inclusive brand. For eligible small businesses, the IRS now offers a tax credit to help offset the cost of accessibility improvements, including updates to your digital presence.
A digital marketing agency that understands the balance between compliance, user experience, and growth can help businesses implement these changes efficiently while also maximizing ROI.
Website accessibility refers to building digital experiences that can be used by people with disabilities, including visual, hearing, cognitive, and motor impairments.
Key features of an accessible website include:
These enhancements support users with varying needs, often leading to better performance across all segments of your audience.
There are compelling reasons for businesses to integrate accessibility into their digital marketing strategy:
According to the CDC, over 61 million adults in the U.S. live with a disability. Making your website accessible ensures a significantly larger customer base can reach your products or services.
Many accessibility practices—like alt text, clean site structure, and mobile responsiveness—also support search engine optimization (SEO). That means better rankings, more traffic, and improved conversion rates, all of which strengthen your digital marketing outcomes.
Website accessibility lawsuits under the Americans with Disabilities Act (ADA) have surged in recent years. Complying with digital accessibility standards can reduce your legal exposure while reinforcing your reputation as a forward-thinking brand.
For businesses that rely heavily on digital engagement, partnering with a digital marketing firm that prioritizes accessibility is a proactive step toward long-term growth and resilience.
The IRS Disabled Access Credit (Section 44 of the Internal Revenue Code) was created in 1990 to help small businesses pay for ADA-related eligible access expenditures.
This refers to any costs a business incurs when improving accessibility for people with disabilities, such as providing readers for customers or employees with reading disabilities and producing printed materials in accessible formats.
As technology became inevitable in people’s lives, the government saw the need to make electronic and information technology (EIT) accessible to people with disabilities, too.
So, in January of 2017, they made an amendment to include website accessibility in the policy.
The IRS Disabled Act Credit provides qualifying small businesses with a non-refundable tax credit for expenses related to making their operations more accessible, including digital enhancements.
Eligibility for the IRS Disabled Access Credit is designed to support true small businesses. To qualify, your business must meet at least one of the following criteria:
This definition is generous enough to include a wide variety of small businesses—everything from medical offices and retail stores to salons, restaurants, and local service providers. If you operate as a sole proprietor or run a small team, there’s a strong chance you already meet the eligibility requirements.
It’s important to note that part-time employees do not count toward the 30-employee limit, which means many businesses that use flexible staffing models still qualify. Even if your revenue fluctuates year to year, a good digital marketing agency or accountant can help you verify your eligibility based on IRS definitions.
If you’re unsure whether your business qualifies, start by reviewing your most recent tax filing and employee count. Documentation should be clear, and this step is relatively quick, especially when working with a knowledgeable tax professional or digital marketing firm familiar with compliance requirements.
The IRS Disabled Access Credit provides a 50% tax credit on qualifying expenses incurred during the tax year. Here's how the math works:
Example:
If you spend $1,250 improving your website’s accessibility (adding alt text, closed captioning, and enhancing screen reader support), your eligible amount is $1,000 ($1,250 - $250). You’d receive a $500 tax credit (50% of $1,000).
If you invest $10,250 or more, your business qualifies for the full $5,000 credit.
This is a dollar-for-dollar reduction in your tax liability, not just a deduction. That means if your tax bill is $8,000 and you qualify for the full $5,000 credit, you’d only owe $3,000.
Whether you're budgeting for new accessibility tools, a full website overhaul, or hiring an internet marketing agency to ensure full WCAG 2.1 compliance, the IRS credit significantly lowers your out-of-pocket costs.
Remember: this credit resets annually, so ongoing investments in accessibility may continue to be partially reimbursed year after year—further reducing the cost of long-term digital marketing services and compliance work.
These improvements must be made to improve accessibility for people with disabilities, in accordance with the Americans with Disabilities Act (ADA).
To utilize the credit:
Many companies choose to work with a digital marketing firm and reference the IRS’s tax benefits to ensure all updates meet compliance criteria.
In addition to the tax credit, businesses of any size can deduct up to $15,000 annually for expenses related to removing physical or digital barriers. This deduction can be claimed alongside the credit, as long as it’s not applied to the same expenses.
This combination of incentives gives small businesses a rare opportunity to enhance their digital marketing services while lowering tax liability.
Here’s a quick checklist to determine if your site meets accessibility standards:
Improving accessibility doesn’t just help people with disabilities—it supports stronger digital marketing performance overall. An optimized, user-friendly website results in better engagement, lower bounce rates, and increased trust.
Building an inclusive website isn’t just about compliance but leadership, integrity, and smart growth. A digital marketing agency that understands ADA compliance, SEO, and UX can help you unlock the full benefits of accessibility while tapping into generous IRS tax incentives.
At Digital Resource, we specialize in:
As a trusted internet marketing company, we combine technical expertise with human-first design to ensure your digital presence works for everyone.
Let’s make your website accessible, inclusive, and high-performing. Contact our digital marketing agency today.
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