Tax Benefits for Hiring the Visually Impaired

As many business sectors report shortages of quality workers, a vast population of motivated workers remains largely unemployed.

New York State employers now have the opportunity to secure motivated workers, while lowering their taxes in the process, thanks to special tax credits designed to encourage the hiring of individuals with disabilities.

There are several tax credits available:

The Federal Work Opportunity Tax Credit provides a credit against federal corporate income taxes of up to $2,400 per individual (first year of employment only) for companies that hire individuals from eight targeted groups including disabled individuals: families receiving public assistance, high-risk youths, ex-felons, qualified veterans, and food stamp recipients under the age of 25, who are considered to face barriers to employment. The Welfare to Work Credit (WTWC) is available to employers who hire individuals who have received family assistance for an extended period of time. This tax credit has been extended until December 31, 2007.

The State Workers with Disabilities Employment Tax Credit allows an additional tax credit of $2,100 against state taxes for each disabled worker hired. However it is first year earnings and qualified second year earnings if needed – meaning if an employee begins employment on December 31, it would carry to the next year until the $2100 is reached.

The Federal Disabled Access Tax Credit, available to businesses with fewer than 30 employees and no more than $1 million in gross receipts, provides up to a 50 percent tax credit toward "eligible access expenditures" such as the removal of architectural or transportation barriers, the modification of equipment, and the use of alternative communication formats.

The Federal Architectural Transportation Barrier Removal Deduction allows employers who remove barriers to the workplace to make it more accessible for individuals with disabilities a deduction of up to $15,000.

The above information refers to regulations in effect at the time of publication. Restrictions may apply. Contact the Internal Revenue Service at 800-829-1040 or visit www.irs.gov for more information on employer tax incentives.