Key Takeaways
- 1The IRS Disabled Access Credit (Form 8826) covers 50% of eligible accessibility expenses between $250 and $10,250 — up to $5,000 per year
- 2Website accessibility expenses qualify — including audits, remediation, monitoring tools, developer training, and consulting
- 3Small businesses with under $1M gross receipts OR ≤30 full-time employees qualify — you only need to meet one criterion
- 4The credit is available every year — making ongoing subscriptions like accessibility monitoring eligible annually
- 5At $348/year, RatedWithAI's accessibility monitoring pays for itself 14× over through the tax credit alone
1. What Is the Disabled Access Credit?
The Disabled Access Credit is a federal tax credit established under Internal Revenue Code Section 44 as part of the Americans with Disabilities Act of 1990. It's designed to help small businesses offset the cost of making their operations — including their websites — accessible to people with disabilities.
Unlike a tax deduction (which reduces your taxable income), a tax credit directly reduces the amount of tax you owe. Dollar for dollar, credits are more valuable than deductions.
Credit at a Glance
IRS Form
Form 8826 — Disabled Access Credit
IRC Section
Section 44
Credit Rate
50% of eligible expenses
Eligible Range
$250 – $10,250
Maximum Annual Credit
$5,000
Frequency
Every year (recurring)
The credit flows into Form 3800, General Business Credit (Part III, Line 1e) for most filers. Partnerships and S corporations report the credit on Schedule K and pass it through to partners or shareholders.
2. Who Qualifies for the Disabled Access Credit?
The credit is available to eligible small businesses that meet either of the following criteria for the preceding tax year:
Revenue Test
≤ $1M
Gross receipts of $1 million or less in the preceding tax year
Employee Test
≤ 30
No more than 30 full-time employees (30+ hours/week for 20+ calendar weeks)
Important: You only need to meet one of these criteria — not both. A business with $5M in revenue but only 15 employees would still qualify. And a sole proprietor with $800K in revenue and no employees would qualify too.
According to the U.S. Small Business Administration, approximately 33.2 million small businesses operate in the United States, and the vast majority would meet at least one of these qualifications. If your business directly serves customers — whether through a physical location, a website, or both — you likely qualify.
3. Eligible Website Accessibility Expenses
The IRS defines eligible expenditures broadly as amounts paid or incurred to comply with the ADA. According to Form 8826 instructions and IRS Publication 535, eligible expenses include those for:
- ✓Removing barriers that prevent accessibility — including digital barriers on websites and applications
- ✓Making audio materials available to hearing-impaired individuals — captioning, transcripts, audio descriptions
- ✓Making visual materials available to visually impaired individuals — alt text, screen reader compatibility, accessible PDFs
- ✓Acquiring or modifying equipment/devices for individuals with disabilities — accessibility tools, software, and subscriptions
Specific Website Accessibility Expenses That Qualify
| Expense Category | Examples | Typical Cost |
|---|---|---|
| Accessibility Audits | WCAG 2.1/2.2 audits, automated + manual testing | $1,500 – $10,000 |
| Remediation | Fixing WCAG failures, alt text, keyboard navigation, ARIA labels | $2,000 – $25,000+ |
| Monitoring Tools | RatedWithAI, axe DevTools Pro, WAVE subscriptions | $300 – $3,000/yr |
| Developer Training | WCAG standards training, accessible coding practices | $500 – $5,000 |
| Captioning & Transcripts | Video captions, audio descriptions, transcript services | $300 – $3,000/yr |
| Document Remediation | Accessible PDF conversion, document structure fixes | $500 – $5,000 |
| Consulting | Accessibility strategy, compliance roadmap, legal consultation | $1,000 – $10,000 |
| Accessibility Statement | VPAT creation, accessibility policy documentation | $500 – $3,000 |
💡 Pro tip: The DOJ ruled in 2018 that websites are places of public accommodation, which means digital accessibility expenses are firmly within the scope of ADA compliance — and therefore eligible for the Disabled Access Credit.
4. How to Calculate Your Credit
The calculation is straightforward. Here's how Form 8826 works line by line:
The formula is simple: Credit = (Eligible Expenses − $250) × 50%, capped at $5,000.
5. Real-World Calculation Examples
Example A: Small Business Using RatedWithAI Only
A local restaurant subscribes to RatedWithAI's Starter plan ($29/month = $348/year) for ongoing accessibility monitoring.
Eligible expenditures: $348
Minus threshold: $348 − $250 = $98
Credit (50%): $98 × 50% = $49
Even at the most basic level, the tax credit reduces the effective annual cost from $348 to $299 — just $24.92/month for continuous accessibility monitoring.
Example B: Audit + Monitoring Bundle
A law firm gets a WCAG accessibility audit ($3,000) and subscribes to RatedWithAI Pro ($79/month = $948/year) for ongoing monitoring. Total: $3,948.
Eligible expenditures: $3,948
Minus threshold: $3,948 − $250 = $3,698
Credit (50%): $3,698 × 50% = $1,849
The tax credit nearly pays for the entire monitoring subscription. Effective cost: $3,948 − $1,849 = $2,099 for a full audit + year of monitoring.
Example C: Full Remediation Project
An e-commerce store invests in a comprehensive accessibility overhaul: audit ($5,000), developer remediation ($8,000), accessibility monitoring ($348/year), captioning ($1,500). Total: $14,848.
Eligible expenditures: $14,848
Minus threshold: $14,848 − $250 = $14,598
Cap applied: $10,000 (max eligible)
Credit (50%): $10,000 × 50% = $5,000
Even though expenditures exceeded $10,250, the business still claims the maximum $5,000 credit. The remaining expenses above the cap may qualify for the Section 190 deduction.
6. How to File Form 8826
Filing is straightforward — no separate application or pre-approval needed. Simply include Form 8826 with your annual tax return.
Track Your Expenses
Keep invoices, receipts, and subscription records for all accessibility-related expenditures during the tax year. This includes monitoring tool subscriptions, audit fees, developer invoices, and consulting bills.
Download Form 8826
Available at irs.gov/forms-pubs/about-form-8826. Most tax software (TurboTax, H&R Block, etc.) includes this form automatically when you indicate general business credits.
Complete the Form
Enter your total eligible expenditures on Line 1. The form does the math: subtract $250, cap at $10,000, multiply by 50%.
Include with Your Return
The credit transfers to Form 3800 (General Business Credit), Part III, Line 1e. For partnerships and S corporations, report on Schedule K.
⚠️ Tax professional disclaimer: While this guide explains how the credit works, always consult with your CPA or tax advisor before filing. They can ensure your specific expenses qualify and the form is completed correctly.
7. Why This Is an Annual Opportunity
One of the most powerful aspects of the Disabled Access Credit is that it's not a one-time benefit. You can claim it every year you incur eligible accessibility expenses. This fundamentally changes the economics of accessibility compliance.
Consider the math for ongoing monitoring:
5-Year Cost of RatedWithAI with Tax Credit
| Year | Subscription | Tax Credit | Net Cost |
|---|---|---|---|
| Year 1 | $348 | −$49 | $299 |
| Year 2 | $348 | −$49 | $299 |
| Year 3 | $348 | −$49 | $299 |
| Year 4 | $348 | −$49 | $299 |
| Year 5 | $348 | −$49 | $299 |
| 5-Year Total | $1,740 | −$245 | $1,495 |
Based on RatedWithAI Starter plan at $29/month. Businesses with additional accessibility expenses (audits, developer time, consulting) would see significantly larger credits — up to $5,000 per year.
Now compare this to the cost of not having monitoring: the average ADA website lawsuit settlement ranges from $5,000 to $40,000, with some cases reaching millions. Fashion Nova's settlement was $5.15 million.
8. Disabled Access Credit vs. Section 190 Deduction
The IRS provides two separate tax incentives for accessibility improvements. Understanding the difference can help you maximize your benefit:
| Feature | Disabled Access Credit (§44) | Barrier Removal Deduction (§190) |
|---|---|---|
| IRS Form | Form 8826 | Schedule C or business return |
| Type | Tax credit (dollar-for-dollar) | Tax deduction (reduces income) |
| Maximum benefit | $5,000/year | $15,000/year |
| Eligibility | Small businesses only (≤$1M or ≤30 employees) | Any size business |
| Covers digital expenses? | Yes — website accessibility | Primarily physical barriers |
| Can combine? | Yes — but not for the same expenses. Use §44 for the first $10,250, then §190 for additional costs. | |
💡 Strategy: If your total accessibility expenses exceed $10,250, claim the Disabled Access Credit for the first $10,250 (getting up to $5,000 back as a credit), then use the Section 190 deduction for expenses above that threshold (up to an additional $15,000 deduction). Consult your tax professional to optimize this combination.
9. Why 2026 Is the Year to Act
Three converging forces make 2026 the most important year for small businesses to invest in accessibility — and claim this tax credit:
🏛️ The ADA Title II Deadline (April 24, 2026)
The DOJ's ADA Title II compliance deadline requires all state and local government entities with 50,000+ population to meet WCAG 2.1 AA standards by April 24, 2026. Government contractors and vendors — many of them small businesses — must ensure their web services are compliant too.
⚖️ Record ADA Lawsuits
Over 8,800 ADA website accessibility lawsuits were filed in 2024, according to Seyfarth Shaw. Florida saw a 143% increase in filings. Serial litigants are targeting small businesses specifically — a single attorney in Missouri filed 126 lawsuits.
📅 Tax Season + ADA Deadline Convergence
For the 2025 tax year (filing by April 15, 2026), any accessibility expenses you incurred in 2025 are eligible for the credit. And any expenses in 2026 will qualify for next year's filing. This creates a perfect window: invest in accessibility now, claim the credit when you file, and be compliant before enforcement ramps up.
10. The True Cost of Accessibility (Hint: It's Negative)
When you factor in the tax credit, lawsuit risk reduction, and business benefits, the ROI on accessibility investment becomes overwhelming:
Cost-Benefit Analysis: Accessibility Monitoring
Put differently: one prevented lawsuit pays for 17 to 134 years of accessibility monitoring. The math isn't just favorable — it's absurd. Accessibility compliance with ongoing monitoring is one of the highest-ROI investments a small business can make.
And this doesn't even account for the business benefits of an accessible website: reaching the 75+ million Americans with disabilities (per the CDC), improved SEO from clean semantic markup, higher conversion rates from better UX, and enhanced brand reputation.
11. Common Mistakes to Avoid
❌ Double-dipping on the same expenses
Expenses claimed under Form 8826 cannot also be claimed as a business deduction or used for any other tax benefit. However, you can split expenses — using §44 for the first $10,250 and §190 for any excess.
❌ Not keeping documentation
Save all invoices, receipts, subscription confirmations, and contracts related to accessibility work. The IRS may request documentation to substantiate the credit.
❌ Thinking it's only for physical modifications
Many businesses — and even some accountants — don't realize that website accessibility expenses qualify. The DOJ's classification of websites as public accommodations makes digital accessibility firmly within scope.
❌ Only claiming it once
This is a recurring credit. If you have annual accessibility expenses (monitoring subscriptions, periodic audits, ongoing remediation), you can claim it every year. Many businesses leave thousands on the table by treating it as one-time.
❌ Relying on overlays instead of real compliance
While overlay tool subscriptions may technically qualify as an expense, they don't provide real WCAG compliance — and the FTC fined accessiBe $1 million for misleading claims. Invest in tools that actually analyze your code and identify real accessibility barriers.
12. Frequently Asked Questions
Can I claim the Disabled Access Credit for website accessibility?
Yes. The IRS considers website accessibility improvements as eligible expenditures under the Disabled Access Credit. Expenses for removing digital barriers, adding alt text, improving keyboard navigation, and purchasing accessibility monitoring tools all qualify, provided your business meets the eligibility criteria (under $1M gross receipts or 30 or fewer full-time employees).
How much is the IRS Disabled Access Credit worth?
The credit covers 50% of eligible expenditures between $250 and $10,250 per tax year. The maximum credit is $5,000 per year. For example, if you spend $2,000 on accessibility improvements, your credit would be ($2,000 − $250) × 50% = $875.
Who qualifies for the Disabled Access Credit?
Your business must meet one of two criteria for the preceding tax year: (1) gross receipts of $1 million or less, OR (2) no more than 30 full-time employees (defined as working at least 30 hours/week for 20+ calendar weeks). You only need to meet one criterion — not both.
Can I claim the credit every year?
Yes. Unlike many one-time credits, the Disabled Access Credit can be claimed every tax year in which you incur eligible expenditures. This makes ongoing costs like monitoring subscriptions, periodic audits, and annual remediation work eligible year after year.
What if my credit exceeds my tax liability?
The Disabled Access Credit is a non-refundable credit, meaning it can reduce your tax liability to zero but won't generate a refund. However, if the credit exceeds your current year tax liability, the unused portion can be carried back one year and carried forward up to 20 years as part of the General Business Credit (Form 3800).
Is the Disabled Access Credit different from the Section 190 deduction?
Yes. The Disabled Access Credit (Section 44, Form 8826) is a tax credit of up to $5,000 for small businesses. The Architectural Barrier Removal Deduction (Section 190) is a tax deduction of up to $15,000 available to businesses of any size. Small businesses can use both, but the same expenses cannot be claimed under both provisions.
Do accessibility monitoring subscriptions qualify?
Yes. Ongoing accessibility monitoring subscriptions — like those offered by RatedWithAI starting at $29/month ($348/year) — qualify as eligible expenditures for removing barriers that prevent accessibility. Since the credit is available annually, recurring costs can be claimed each year.
My accountant hasn't heard of this. What do I do?
It's more common than you'd think — many tax professionals aren't aware that website accessibility qualifies for this credit. Simply tell them the form number (8826) and reference IRC Section 44. They can quickly pull up the form and instructions from the IRS website.
Start Monitoring — and Start Claiming
RatedWithAI's accessibility monitoring starts at $29/month. With the Disabled Access Credit, your effective cost could be as low as $24.92/month — less than a single lunch. One prevented lawsuit pays for over a decade of monitoring.
Save your invoice — it's your documentation for Form 8826.
13. Sources
- IRS — About Form 8826, Disabled Access Credit
- IRS — Form 8826 (PDF)
- ADA.gov — Tax Credits and Deductions Information
- Teach Me Personal Finance — IRS Form 8826 Instructions
- 216digital — Web Accessibility & the Disabled Access Tax Credit
- Vance Bell — Reduce Your Web Accessibility Costs Through an IRS Tax Credit
- Seyfarth Shaw — ADA Title III Federal Lawsuit Numbers Rebound to 8,800 in 2024
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