To help employers capitalize on the value and talent that people with disabilities offer America’s workplaces, the Federal Government offers a number of tax incentives for employers. Overall, these incentives are intended to serve two purposes:
- To encourage the hiring of individuals with disabilities.
- To support modifications and accommodations designed to enhance the accessibility of the workplace and productivity of workers with disabilities.
The main tax incentives include the following.
Additional veteran-specific incentives include:
- WOTC Extension for Hiring Veterans with Disabilities
- On-the-Job Training Program for Hiring Veterans with Disabilities
- Special Employer Incentive Program for Hiring Veterans with Disabilities
Several states also offer state-specific tax credit programs to employers who hire people with disabilities, some based on the WOTC and others related to accessibility improvements.
A brief summary of each of these tax incentives is available in the EARN publication Employer Incentives for Hiring People with Disabilities: Federal Tax Incentives At-A-Glance. The Job Accommodation Network (JAN) also offers information about the various tax incentives for employers. Relevant forms and documentation guidance are available from the Internal Revenue Service.