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EXAMPLE OF HOW TO APPLY THE SMALL BUSINESS DISABLED TAX CREDIT TO THE COST OF PROVIDING SIGN LANGUAGE INTERPRETERS FOR AN EMPLOYEE:

Company X hired an individual with a disability; the individual is deaf and requires the use of a sign language interpreter during staff meetings, meetings with a supervisor involving discussion of key job tasks, performance and/or disciplinary action. The total number of interpreter hours used during the tax year was 75 hours at the cost of $50.00 per hour. Therefore, the cost of providing the reasonable accommodation for the employee with a disability was $3750. The employer can apply the tax credit for the amount spent over $250 which is $3500. Fifty percent of $3500 is $1750. Therefore, Company X is eligible to take a $1750 tax credit.

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TIPS

  • Consider the use of the tax benefits to offset the cost of an accommodation when determining whether or not an undue financial hardship defense can be made.
  • The tax benefits can be used each year to offset the cost of on-going accommodation needs or for accommodating other employees or customer needs.
Disclaimer: This ADA InfoBrief is intended to provide a general overview of how Tax Benefits can be utilized to meet your ADA requirements and should not be considered legal advice. For more details on the IRS Tax benefits, contact the IRS Office serving you.

RESOURCES

Check out the following resources for more detailed information on IRS Tax Benefits:

  • Internal Revenue Service web site at www.irs.gov or the IRS Business Service Office at 800-829-4933.
  • US Department of Justice has information on their web site regarding the tax credits at www.ada.gov or through their toll free number at 800-541-0301.
  • Job Accommodation Network, a free service providing ADA information and individualized accommodations solutions to employers: 800/526-7234; www.jan.wvu.edu.
  • Great Lakes ADA Center providing information, training, and technical assistance on the ADA to employers, people with disabilities, and others: 800-949-4232
FUNDING FOR THIS INFOBRIEF PROVIDED BY THE CHICAGO WORKFORCE DEVELOPMENT BOARD THROUGH A GRANT FROM THE US DEPARTMENT OF LABOR
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This site may link to materials developed by federal agencies and/or their grantees. Several of the links provided will take you to external websites. The content and materials available on this website is property of the Great Lakes ADA Center. This tool was developed under NIDILRR grant #90DP0091-01-00.