Accessibility cost savings

Accessibility can pay back.

Making your business more accessible may do more than improve communication. Eligible businesses may qualify for federal tax incentives that help offset accessibility costs.

Tax incentives depend on individual circumstances. bitsign does not provide tax or legal advice.

01The federal incentive

Up to

$5,000

Federal tax credit

The federal Disabled Access Credit may allow qualifying small businesses to claim up to $5,000 annually for eligible expenditures made to improve access for people with disabilities.

You may qualify if your business had

$1M or less

in gross receipts

or

30 or fewer

full-time employees

…in the preceding tax year. The credit is nonrefundable and is elected by filing IRS Form 8826.

02How the credit can work

A simple, illustrative example.

Accessibility investment
$10,250
First $250
Excluded
Eligible calculation base
$10,000
50% credit rate
× 0.5
Potential federal credit
$5,000
Illustrative example

The credit equals 50% of eligible access expenditures over the first $250, counted up to $10,250 — for a maximum credit of $5,000 in a given year.

Actual eligibility depends on the expenditure and taxpayer. Consult a qualified tax professional.

03The tax code already recognizes access

Communication is one of the most fundamental accessibility barriers of all.

Current IRS guidance describes categories of eligible access expenditures — including, among others:

  • Removing barriers that prevent accessibility
  • Providing qualified interpreters or other methods of making audio materials available to people with hearing disabilities
  • Providing accessible formats or readers for people with visual disabilities
  • Acquiring or modifying equipment or devices for individuals with disabilities

bitsign is designed specifically to improve real-time communication access between Deaf and hearing people. Because of that, eligible businesses may wish to ask their tax adviser whether their bitsign implementation may constitute an eligible access expenditure.

This page does not state that the IRS has specifically approved bitsign as a qualifying expenditure. Whether any specific bitsign expense qualifies must be determined by your tax professional.

04The return is bigger than tax

Four returns on one investment.

Access

Communicate more effectively with Deaf and hard-of-hearing customers, patients, and employees.

Availability

Give staff another communication-access tool for the moments it is needed most.

Compliance

Strengthen the accessibility infrastructure supporting ADA and other applicable communication-access obligations.

Economics

Potential tax incentives may help offset accessibility investments for qualifying businesses.

bitsign supports your accessibility and communication-access program. No single technology automatically establishes ADA compliance.

05Could your business qualify?

An educational estimate — in your browser, kept private.

Enter a few figures to see whether your business may meet the small-business size test, and an illustrative potential credit. Nothing you type is stored or sent anywhere.

Calculations run entirely in your browser. Nothing you enter is sent to bitsign, saved, or stored.

This is an educational estimate only. Qualification of expenses and final tax treatment must be determined by your tax professional.

06And it may still be a business expense

Credits and deductions work differently.

Independent of accessibility-specific incentives, accessibility technology used in operating a business may also receive normal business-expense treatment — depending on the facts and the tax rules applicable to your business. Some software must instead be capitalized, amortized, depreciated, or treated under separate rules.

Tax credits and deductions are different, and the same dollars generally cannot be used twice. Your accountant can determine which benefits apply and how they interact.

For your accountant

A one-page tax information sheet.

A concise summary of what bitsign is, the current Disabled Access Credit thresholds, Form 8826, eligible expense categories, and official IRS and ADA references — ready to hand to your CPA, controller, CFO, or tax attorney.

bitsign — Accessibility Tax Information Sheet

Educational summary · 1 page · printable PDF

Download for your accountant
07Questions

What businesses ask us.

Does buying bitsign automatically qualify me for a $5,000 credit?
No. The Disabled Access Credit depends on the business and whether the particular expenditure qualifies under federal tax rules. A qualified tax professional should determine eligibility.
Is the credit worth $5,000?
The maximum current federal Disabled Access Credit is $5,000 per year. The actual amount depends on your qualifying expenditures.
Who qualifies as a small business?
Under current Form 8826 rules, a business generally satisfies the size requirement if, in the preceding tax year, it had gross receipts of $1 million or less OR no more than 30 full-time employees. Verify the current IRS rules for your situation.
Can the credit be claimed every year?
IRS guidance states that eligible businesses may take the credit each and every year they incur qualifying access expenditures, subject to applicable rules.
Is bitsign a tax deduction too?
Potentially. Business software and services may qualify for ordinary business-expense treatment depending on the circumstances. Some software must instead be capitalized or otherwise treated under separate tax rules. Ask a tax professional.
Can I claim both the Disabled Access Credit and a deduction on the same expense?
Generally, the same amount cannot receive a double tax benefit. A tax adviser should determine how credits and deductions interact for your business.
Does using bitsign make my business ADA compliant?
No single technology automatically establishes ADA compliance. bitsign is designed to strengthen communication accessibility and should be used as part of an organization's broader accessibility program.
Accessibility isn't only a cost. It can be an investment.

Make access easier. Make the economics easier too.

Build better communication access for your customers, patients, and employees — and explore whether federal accessibility incentives can help offset the investment.

bitsign and UMI do not provide tax, accounting, or legal advice. Information presented on this page is for general educational purposes only and should not be relied upon as a determination of eligibility for any tax credit, deduction, or other benefit. Eligibility depends on the taxpayer, the nature of the expenditure, applicable law, and individual circumstances. Businesses should consult a qualified tax professional regarding their specific situation. Tax figures reflect current federal guidance under IRC §44 and IRS Form 8826 and may change; verify current rules before relying on them.