Hiring employees with disabilities is a great way to bring diverse perspectives and skill sets into your organization. But how much does it actually cost to bring them on? And what sort of assistance is available to help you? The US Department of Education and Monster Government Solutions are working together to give you a chance to get the facts on tax credits and incentives available to employers hiring workers with disabilities.

An Untapped Resource

There are seven different tax credits available to companies who hire employees with disabilities. In fact, the primary reason these credits and deductions were created was to help smooth the path to employing workers with disabilities. Despite the fact that these incentives are readily available and can markedly reduce the costs associated with bringing on an employee with a disability or making your workplace accessible to employees and customers, fewer than 20 percent of human resources professionals report being familiar with any of them. These seven tax credits are available for you to use and can help you more easily bring on skilled employees and build an inclusive workplace and marketplace.

The Opportunities at a Glance

As a business wishing to accommodate employees with disabilities, there are several tax credits, deductions and cost reimbursement programs for which you may qualify. Among them:

Disabled Access Credit: Small businesses that in the previous year earned a maximum of $1 million in revenue or had 30 or fewer full-time employees are eligible. The credit is 50 percent of expenditures more than $250. Examples of covered expenses include sign language interpreters for employees or customers who have hearing impairments, purchase of adaptive equipment or the modification of equipment or the removal of architectural barriers in buildings or vehicles.

Architectural/Transportation Tax Deduction: Businesses may take an annual deduction of up to $15,000 per year for expenses incurred to remove physical, structural and transportation barriers for persons with disabilities at the workplace. Examples include making walkways at least 48 inches wide and providing telephones, water fountains and restrooms that are accessible to people with wheelchairs.

Work Opportunity Credit: For-profit firms, regardless of size, are eligible for a tax credit of up to $2,400 for each new hire.

Welfare-to-Work Credit: This provides tax credit of up to $8,500 for each new hire employed at least 400 hours or 180 days. Individuals must be certified by the designated local agency as a member of a family that received Temporary Assistance to Needy Families (TANF) or Aid to Families with Dependent Children (AFDC).

Veterans Special Employer Incentive Program This program provides up to 50 percent of a veteran’s salary paid to the employer for indirect expenses related to program costs, needed tools and equipment supplied for the veteran, reduced labor and training costs and a low-risk trial period.

Mentor-Protege Program: Businesses that employ employees with severe disabilities and subcontract work from a prime contractor to the US Department of Defense may receive technical assistance in areas such as production, management or financing. The prime contractor (mentor) is reimbursed by the federal agency for the costs of the technical assistance provided to the employee (protege).

Social Security Administration (SSA) Employment Network Cash Provisions: All businesses that are not disbarred from federal grants and contracts are eligible. An Employment Network (EN) can consist of individual business entities or consortia of business entities or organizations. Business entities or organizations can participate in more than one EN. The EN provides services to individuals with disabilities who receive Social Security benefits to enable them to obtain or advance in employment to the extent that they no longer require SSA benefits.

Additional Resources

There are scores of resources available to employers who are eager to explore using tax credits and deductions to make accommodations or purchase assistive technology for employees with disabilities. Consult these resources for more details, restrictions, application procedures and other important information:

US Department of Education: Provides resources that are available in your community and can connect you with qualified workers with disabilities. These programs, administered by the Rehabilitation Services Administration (RSA) of the Office of Special Education and Rehabilitative Services (OSERS), include the state Vocational Rehabilitation (VR) program and the Centers for Independent Living (CILs).

Internal Revenue Service: Search this brochure for more specific information on the tax credits available to your company or organization.

Local Chamber of Commerce: Whether you own a business, represent one, lead a corporate office or manage an association, the Chamber of Commerce of the United States of America provides you with a voice of experience and influence in Washington, DC, and around the globe.

Disabilityinfo.gov: This user-friendly Web site contains links to information of interest to people with disabilities, their families, employers, service providers and other community members. This site contains many links to information about accomodations and employing individuals with disabilities at specific organizations in the Employer Resource section.

Federal Government’s Office of Personel Management: This agency has information on issues such as the advantages of hiring people with disabilities, special hiring authorities, interviewing people with disabilities and providing reasonable accommodations when they are needed.