The federal government is committed to supporting businesses who offer employment opportunities to people with varying abilities. Lower Shore Enterprises, Inc. wants to help you navigate through the available federal and state tax incentives, as well as keep you informed of the benefits that are available to you when you seek out and hire individuals with varying abilities.
BENEFITS:
• Studies have shown that employers receive an average $28.69 return for every dollar invested in accommodations made for the differently abled.
• Customers with varying abilities and their families, friends and associates represent a $3 TRILLION market segment and 87% of customers would prefer to patronize businesses that employ differently-abled individuals.
• The turnover rate for this employee segment is remarkably lower than for other workers – by more than 75%!
• Almost one-third of people with varying abilities, between 21 and 64 years of age, have some college or an Associate’s Degree – which is nearly the same as the percentage of college-educated people in the general population.
There are many Federal tax incentives supporting businesses that remove architectural or other physical barriers, enabling those with varying abilities access to the workplace.
The Architectural/Transportation tax deduction: applies to businesses that remove existing barriers in buildings or in transportation vehicles. (IR Code Section 190, Barrier Removal)
Some examples of the type of barrier removals supported by this tax incentive are:
• Hiring a reader to record instructions for an employee who is blind
• Widening doors to allow easier access to break rooms
• Repainting of parking lot to allow for more parking for differently abled persons
The Disabled Access Credit: helps small businesses remove architectural barriers and purchase equipment, aids, or services for people with varying abilities. (IR Code Section 44)
The possibilities include:
• Sign language interpreters for employees needing translation at performance reviews
• Production of Braille or large print documents for instruction manuals
• Purchase of adjustable work spaces for individuals using wheelchairs
The Work Opportunity Tax Credit (WOTC) provides employers a tax credit for hiring individuals from certain targeted groups, including those who have been referred from vocational rehabilitation programs (IR Code Section 51)
In addition to these Federal tax incentives, the state of Maryland offers its own tax incentives to organizations that hire individuals with varying abilities. The Maryland Disability Employment Tax Credit (MDETC) enables employers to take a credit in the amount of 30% up to the first $9,000 of wages paid during both the first AND second year of employment. This translates to $2,700 in savings to the company each year for the first two years of employment for these special employment categories. In addition to this MDETC benefit, employers may also receive a tax credit for work-related child care or transportation expenses paid by the employer. The MDETC allows a credit of up to $900 for qualified child care or transportation incurred during each of the first two years of employment – amounting to $1,800 in savings over 24 months. These benefits provided by MDETC may be claimed along with any federal tax credits for which the employee/employer may be eligible.
These incentives are available if your organization is interested in hiring individuals with varying abilities and Lower Shore Enterprises is here to help you discover and claim these benefits as you work toward giving employment opportunities to these special and unique individuals.
