Employer Guide To Tax Credits For Hiring Employees With Disabilities
Source: U.S. Chamber of Commerce
Author: Jenna Shrove, Senior Director of Strategic Advocacy and Advisor to the Chief Policy Officer
US Chamber of Commerce Tax Guide for Hiring Employees with Disabilities
Three Tax Credits Available to Employers Who Hire Individuals with Disabilities
Businesses that make structural adaptations or other accommodations for employees with disabilities may be eligible for certain tax incentives. This guide details three federal tax credits, and what employers need to know.
The following credits are detailed in this guide:
- The Work Opportunity Tax Credit (WOTC), for instance, is available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment.
- The Disabled Access Credit provides a non-refundable credit of up to $5,000 for small businesses that incur expenditures for the purpose of providing access to persons with disabilities.
- The Architectural Barrier Removal Tax Deduction encourages businesses of any size to remove architectural and transportation barriers to the mobility of persons with disabilities and the elderly. Businesses may claim a deduction of up to $15,000 a year for qualified expenses for items that normally must be capitalized.
Several states also have their own tax credits for hiring people with disabilities, barrier removal, and employment supports, as well as financial incentives to support employers in establishing stay-at-work/return to work programs.
The Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment.
What are the parameters?
In general, the WOTC is equal to 40% of up to $6,000 of wages paid to or incurred on behalf of, an individual who:
- is in their first year of employment;
- is certified as being a member of a targeted group;
- performs at least 400 hours of services for that employer; and
- begins work on or before December 31, 2025.
The maximum tax credit is generally $2,400. A 25% rate applies to wages for individuals who perform fewer than 400 but at least 120 hours of service for the employer. An employer cannot claim the WOTC for employees who are rehired. In general, taxable employers may carry the current year’s unused WOTC back one year and then forward 20 years.
How do I claim this credit?
The WOTC is a general business credit. The credit is limited to the amount of the business income tax liability or Social Security tax owed.
- On or before the day that an offer of employment is made, the employer and the job applicant must complete Form 8850 (Pre-Screening Notice and Certification Request for the Work Opportunity Credit).
- Note: The employer has 28 calendar days from the new employee’s start date to submit Form 8850 to the designated local agency located in the state in which the business is located (where the employee works). Additional forms may be required by the DOL to obtain certification.
- After receiving a certification from the designated local agency that the employee is a member of one of the 10 targeted groups, taxable employers file Form 5884 (Work Opportunity Credit) to claim the WOTC.
A taxable business may apply the credit against its business income tax liability, and the normal carry-back and carry-forward rules apply. See the instructions for Form 3800 for more information.
For qualified tax-exempt organizations, the credit is limited to the amount of employer Social Security tax owed on wages paid to all employees for the period the credit is claimed.
Source: IRS - Work Opportunity Tax Credit FAQ
The Disabled Access Credit
The Disabled Access Credit provides a non-refundable credit of up to $5,000 for small businesses that incur expenditures for the purpose of providing access to persons with disabilities. An eligible small business is one that earned $1 million or less or had no more than 30 full time employees in the previous year.
What are the parameters?
This tax credit is available to eligible small businesses in the amount of 50 percent of "eligible access expenditures" that exceed $250 but do not exceed $10,250 for a taxable year. A business may take the credit each year that it makes an eligible access expenditure.
“Eligible access expenditures” are amounts paid or incurred by an eligible small business for the purpose of enabling the business to comply with the applicable requirements of the Americans with Disabilities Act (ADA). These include amounts paid or incurred to:
- remove architectural, communication, physical, or transportation barriers that prevent a business from being accessible to, or usable by, individuals with disabilities;
- provide qualified readers, taped texts, and other effective methods of making materials accessible to people with visual impairments;
- provide qualified interpreters or other effective methods of making orally delivered materials available to individuals with hearing impairments;
- acquire or modify equipment or devices for individuals with disabilities; or
- provide other similar services, modifications, materials or equipment.
Note: Expenditures that are not necessary to accomplish the above purposes are not eligible. Expenses in connection with new construction are not eligible. "Disability" has the same meaning as it does in the ADA. To be eligible for the tax credit, barrier removals or the provision of services, modifications, materials or equipment must meet technical standards of the ADA Accessibility Guidelines where applicable. These standards are incorporated in Department of Justice regulations implementing Title III of the ADA (28 CFR Part 36; 56 CFR 35544, July 26, 1991).
How do I claim this credit?
Refer to Form 8826, Disabled Access Credit (PDF), for instructions for how to claim.
Example: Company A purchases equipment to meet its reasonable accommodation obligation under the ADA for $8,000. The amount by which $8,000 exceeds $250 is $7,750. Fifty percent of $7,750 is $3,875. Company A may take a tax credit in the amount of $3,875 on its next tax return.
Example: Company B removes a physical barrier in accordance with its reasonable accommodation obligation under the ADA. The barrier removal meets the ADA Accessibility Guidelines. The company spends $12,000 on this modification. The amount by which $12,000 exceeds $250 but not $10,250 is $10,000. Fifty percent of $10,000 is $5,000. Company B is eligible for a $5,000 tax credit on its next tax return.
Source: EEOC - Facts About Disability-Related Tax Provisions
The Architectural Barrier Removal Tax Deduction
The architectural barrier removal tax deduction encourages businesses of any size to remove architectural and transportation barriers to accommodate the mobility of people with disabilities and the elderly.
The IRS allows a deduction up to $15,000 per year for "qualified architectural and transportation barrier removal expenses." Expenditures to make a facility or public transportation vehicle owned or leased in connection with a trade or business more accessible to, and usable by, individuals who are handicapped or elderly are eligible for the deduction. The definition of a "handicapped individual" is similar to the ADA definition of an "individual with a disability."
How do I claim this credit?
To be eligible for this deduction, modifications must meet the requirements of standards established by IRS regulations implementing section 190.
Businesses claim this deduction by listing it as a separate expense on their income tax return. Also, businesses may use the disabled tax credit and the architectural/transportation tax deduction together in the same tax year if the expenses meet the requirements of both sections. To use both, the deduction is equal to the difference between the total expenses and the amount of the credit claimed.
Source: IRS - Tax benefits of making a business accessible to workers and customers with disabilities
UNITED IN RECOVERY CELEBRATES RECOVERY MONTH THIS SEPTEMBER
Honoring the lives and journey of recovery.
Sunbury and Bloomsburg, PA, September 1st, 2022 – Join United in Recovery as they honor the lives and journey of recovery this September. From educational and community events to naloxone distributions and a 30-day self-care challenge, Recovery Month is for everyone - every person, every family, every community.
Since its start in 1989, National Recovery Month is held every September to promote and support our nation’s strong and proud recovery community, new evidence-based treatment and recovery practices, and the dedication of service providers and communities who make recovery in all its forms possible.
“Here at United in Recovery we celebrate everyone’s path to recovery,” said Olivia Oden, Stigma Reduction and Education Coordinator. “That is why we wanted to make sure to honor the month with lots of events, opportunities to get involved, and informational sessions to learn more about substance-use disorder and local resources.”
United in Recovery (cmcuw.org/unitedinrecovery) is a program of the Greater Susquehanna Valley and Columbia-Montour United Ways and works to reduce drug overdoses and increase the number of community residents in recovery by improving access to education and treatment through supporting prevention, intervention, and community building in the fight against substance use disorder.
United in Recovery will kick off its month-long celebration with a Recovery Symposium on Friday, September 9, 2022, from 9:00 AM to 12:00 PM at The Lewisburg YMCA at the Miller Center, 120 Hardwood, Lewisburg, PA 17837. The goal of this event is to increase awareness and understanding of substance use disorder and decrease the stigma associated with this disease. This community initiative is made possible through the generous support of AmeriHealth Caritas Pennsylvania, Applegate Recovery, Community Care Behavioral Health Organization, Evangelical Community Hospital, Geisinger, and grant funding from Pennsylvania’s Office of Attorney General. “We look forward to celebrating those who are in recovery and connecting individuals and families looking for recovery resources to next steps,” said Adrienne Mael, President/CEO of Greater Susquehanna Valley and Columbia-Montour United Ways. “Our hope is for the community to join us and learn what resources are available in our area.”
Doors Open at 8:30 AM, and there will be three, informative sessions starting at 9:00 AM followed by a Q&A with a panel of experts. Community and recovery resources will also be provided and a time for networking will conclude the event. Tickets are a suggested donation of $10.00 per person and light refreshments will be served. Reserve tickets now at cmcuw.org/recovery-symposium.
A free naloxone distribution event will also be held on Thursday, September 8, 2022, from 12:00 PM to 1:00 PM. Naloxone (Narcan©) is a life-saving medication that has one purpose: to reverse an opioid overdose. It is an opioid antagonist that is used to reverse the effects of opioids by blocking opiate receptor sites. Community members can pick up naloxone kits along with information on substance use disorder treatment, counseling services, peer support, and basic needs assistance.Naloxone distribution events are held monthly and at United Way’s Bloomsburg Office located at 36 East Main Street (between Iron Street and Miller Avenue). These events are free and open to the public. To learn more and see additional distribution dates, visit cmcuw.org/events.
Every day, we lose 14 Pennsylvanians to substance use disorder. Fear of being judged and discriminated against can prevent people with substance use disorder (SUD) or people who are at risk of a SUD from getting the help they need. It can also prevent caregivers and others in the position to help from providing or seeking much needed services.
That is why United in Recovery will host United Way’s monthly Community Conversation. In honor of Recovery Month, September’s Community Conversation will be focused on the science and stigma behind substance use disorder. This virtual event will be held via the Zoom platform on Wednesday, September 21st at 7:00 PM. Registration is required in advance. Visit cmcuw.org/events to sign up today.
Self-care is often a critical component to long-term recovery. It includes nurturing both a person’s physical and mental health and can also help prevent relapse. During recovery, some of the key acts of self-care are connecting with other people and therapy which is why United in
Recovery offers an annual 30-day self-care challenge as part of Recovery Month. Follow the United in Recovery Facebook page (@unitedinrecoverycolumbiamontour) for daily challenges and inspiration. A printable version of the calendar can also be downloaded at cmcuw.org/unitedinrecovery.
“We want to cheer on those who have found recovery and support those still in the process,” said Ms. Mael. “Together we can end overdose deaths in our local communities and reduce the instances of substance-use disorder.”
To learn more about Recovery Month and all the events United in Recovery has planned, visit the United Way website at cmcuw.org/unitedinrecovery or email UIR@cmcuw.org for more information.
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About Greater Susquehanna Valley and Columbia-Montour United Ways: The United Way improves lives by mobilizing the caring power of communities to advance the common good. We fight for the health, education, and financial stability of every person in our community and are located at 228 Arch Street, Sunbury, PA, and 36 East Main Street, Bloomsburg, PA. To learn more, please visit www.gsvuw.org or www.cmcuw.org.
Pop Radio Debuts on WHLM
7 Mountains Media debuted a brand new radio format on WHLM Tuesday morning at 10AM, just 6 days after purchasing the station from Joe & Nancy Reilly.
“Pop Radio”, is a hit music station playing today’s hottest artists, including Harry Styles, Nicki Minaj, Drake and more. The “Pop Radio” concept was created by 7 Mountains Media VP of Programming JC Burton and has been successful in other 7 Mountains Media markets.
Kyle Alexander is the station’s new Program Director. “I’m extremely happy and fortunate that 7 Mountains Media has awarded me the opportunity to lead WHLM into a new chapter. The new format will will connect Gen Z & Millennials in Columbia, Montour and nearby counties, including the almost 8,000 undergrad students at Bloomsburg University. Kyle is also the Program Director for 7 Mountains Media owned Classic Hits, WHNA Hanna Radio (92.3/97.5/106.1).
7 Mountains Media Regional Market Manager Sean O’Mealy said, “Having grown up with the original WHLM it’s an exciting opportunity to re-enliven the station with a brand new format that will speak directly to 20 and 30 something millennials, while maintaining the legendary WHLM call letters”.
Listen to Pop Radio on 104.3 in Bloomsburg, 105.5 Danville, 96.3 Berwick and 94.7 Hazleton and online at www.thisispopradio.com.
The Classic Hits from the 70’s & 80’s that WHLM used to play can be heard on Hanna Radio 92.3, 97.5 & 106.1 or online at www.hannaradio.com. For more information contact Sean O’Mealy at sean@7mountainsmedia.com
Welcome New Member – Columbia County Historical and Genealogical Society
The Chamber is pleased to welcome The Columbia County Historical and Genealogical Society (CCHGS) as one of its newest members.
The CCHGS is committed to the collection, preservation, and publication of the history of Columbia County and to develop resources to aid individuals to discover their family history. It is a charitable and educational organization run entirely by loyal volunteers who collect and index important documents such as church records, cemetery listings, genealogies, manuscripts, photos, pamphlets, clippings, and many others, along with maintaining the Society’s museum and library. Located on the second floor of the Bloomsburg Public Library, it has a library and limited museum collection that is open to the public.
Annually, the Society sponsors public programs, genealogy workshops, and tours to places of historical interest. It also publishes a Newsletter four times a year consisting of multiple pages. Members are entitled to discounts for trips, purchases, and special programs that have a fee. For more about the CCGHS, visit https://colcohist-gensoc.org/
We’re Taking #LaborDayOn
For unemployed Americans, this Labor Day won't be a day off, so we're taking #LaborDayOn.
Created by Red Wing Shoes in 2021, the #LaborDayOn campaign is a rallying cry for businesses to post their jobs for all to see. This year, thanks to community partners at DRIVE, the CareerLink and others, the Chamber and its Foundation are excited to join the campaign with a a focus on Central Pennsylvania.
Join Us For the Campaign September 5 - 9, 2022
From September 5 through September 9, the Chamber and its Foundation are asking businesses big and small to join us in posting any job openings that they have using the hashtags #LaborDayOn, #CentralPAWorks and tagging the Chamber and Foundation social media pages in the posts. When you post, the Foundation's social media platforms will share it. When Chamber members post to Facebook and LinkedIn, these posts will also be shared by the Chamber's social media. Additionally, the Chamber will be highlighting businesses who have submitted job postings to the Chamber website, found here.
Use the Toolkit
Our partners in this effort, DRIVE, created a uniform toolkit for businesses to use, including the image files for posts and an FAQ document. Please feel free to download these resources here.
Together, our hope is to reclaim the true meaning of Labor Day and help talented, Central Pennsylvanians and local businesses find the thing they need most: each other.
Columbia and Montour Counties Fall Under Drought Watch
Source: Pennsylvania Pressroom
Ways to Conserve Water at Home
How DEP Determines Drought Conditions
Nonprofits: Improve Your Year-End Reporting
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We are over halfway through 2022! Many people are looking around and asking, “Where did the year go?” As summer comes to a close, many nonprofit organizations are preparing to start their year-end closing process. Even though it signifies the completion of one fiscal year into another, the process is often dauting to begin, as it includes the completion of several different procedures and the approval of management and/or the board. Below are some suggestions of internal control improvements that an organization can implement to help make the year-end closing process run more efficiently.
Review Donor Restrictions Annually
Donor contributions with restrictions are contributions with donor-imposed restrictions. These restrictions can expire either by the passage of time or by the fulfillment of the stated restriction in the donor letter. Prior to recording the year-end total donor contributions with restrictions, each of these contributions should be reviewed to determine if the restrictions noted by the donor have been met.
Reconcile Donor Records to Accounting Records
Prior to recording the total year-end contributions, a reconciliation between the donation records (donor database) and the accounting records should be prepared. Once prepared, the reconciliation should be included in the year-end financial statement packet to be reviewed and approved by management prior to being presented to the board.
Review Monthly Bank Statements
During the year end reporting process, management should ensure that all bank statements and reconciliations for the fiscal year have been reviewed and approved. For control purposes, the review of the statements and reconciliations should be completed by someone other than the bookkeeper or person responsible for recording the monthly accounting transactions. This review should also include investment statements and any debt/line of credit accounts.
Review Monthly Financial Statement
Internal financial statements should be reviewed by the executive director and/or the board of directors prior to approval. In addition to the balance sheet and the profit and loss statement as of year-end, the internal financial statements can include a comparison of actual revenue and expense recorded to the approved budget, a breakout of any non-operating transactions which were considered outside of the organization’s control and a projection of cash flow/cash needs for the next fiscal year.
Create a Month-End and Year-End Closing Checklist
To ensure all necessary year-end processes and reviews have been completed, a year-end checklist should be created and filled out by management. The checklist should include all necessary year-end procedures such as recording final journal entries, account reconciliations, and preparation of internal financials. These should be initialed by the preparer and the reviewer at each step, and then reviewed by the executive director or the board.
For additional steps that can be implemented during the year to improve internal controls, see McKonley and Asbury's previously published article. You can also learn more about our Nonprofit services by visiting our website.
Member News – August 31, 2022
Doug McMinn to Play at The Listening Room Tonight
The Exchange invites you to join Doug, a leader and a sideman, who has had a long career playing with dozens of local bands. Donations at the door, BYOB is allowed.
Commonwealth University Announces Fall 2022 Career Expos
Meet students and potential hires from Bloomsburg, Lock Haven and Mansfield who are interested in careers in the Accounting, Financial Services and Banking industries. The Accounting and Financial Services Expo will take place September 19 - 22. The Logistics, Information Technology, and Management Expo will take place September 26 - 29. Join the 42 employers registered to attend!
Geisinger Health Plan Receives J.D. Power Award
Geisinger Health Plan was ranked the best health plan in Pennsylvania in the J.D. Power 2022 U.S. Commercial Member Health Plan Study* of customers’ satisfaction with their commercial health plan. Read more.
MARC Announces Staffing Changes
On August 22, Montour Area Recreation Commission approved three staffing changes. These changes included:
- Jon Beam – reclassified from Assistant Director / Naturalist to Naturalist
- Julian Brehm – reclassified from Intern to Assistant Director
- Valentina Shevchenko – reclassified from Intern to Park and Trail Maintenance Technician
SEDA-COG Honors Staff with 30 Years of Service
Congratulations to Kristen Moyer, Jeff Stover and (not pictured), Timothy Shawver for their dedicated work.
Bloomsburg Theatre Ensemble Hosting Auditions for 'A Christmas Carol'
On Saturday, September 3, members of the public are invited to try out for the classic Charles Dickens play. Read more.
Columbia County Traveling Library to Host Mother Goose on the Loose Storytime
This Early Literacy Program aids in speech development, motor coordination, and a love of books for ages birth - two years old. Program is a six week series beginning September 6. Register here.
Knoebels Announces 2022 Scholarship Recipients
Ten Knoebels Amusement Resort team members are starting off the 2022-23 school year with an extra $750 in their pockets from the park’s scholarship program. Read more.
Iron Heritage Festival Just Around the Corner
Mark your calendars for September 9 - 11 for this community celebration, held in conjunction with the Fall Arts & Crafts Festival. This year’s festival will center on Mill Street, but includes special events at other locations throughout the Danville community, such as living history presentations, historic tours of Danville, train rides, live music, vendors, great food, fireworks, hikes, 5K run/walk and much more. Don't miss the train excursions, brought to you by The Danville Business Alliance, Danville Centennial Lions Club, Danville Heritage Festival, North Shore Railroad & Penn Valley Railroad, in partnership with the SEDA-COG Joint Rail Authority. Read more.
Want To Go Fishing?
Did you know that the Columbia County Conservation District partners with the Pennsylvania Fish and Boat Commission to loan out fishing rods and tackle to individuals/groups? The Fishing Tackle Loaner Program, (FTLP) assists people who are interested in fishing but may not have equipment of their own, or want to try out to the hobby before purchasing equipment. When you loan from the District, you will receive fishing poles, a tackle box with hooks, sinkers, bobbers, and basic artificial lures, all you need is live bait and a fishing license! The program also provides participants with a list of popular fishing spots and bait stores throughout Columbia County so that you will be ready to start reeling them in as soon as you pick up the equipment! Read more.Hat's Off to Camp Victory Volunteers
Congratulations are in order to Gail and the volunteers in her kitchen crew at Camp Victory, as they fed more than 150 bikers a chicken barbecue lunch as part of a fundraising event at Camp Victory on August 28. Wow!
Community Giving Foundation: Berwick, Bloomsburg and Danville Announce Scholarships
Foundation scholarship funds awarded over $414,000 in scholarships to more than 285 high school seniors and current undergraduate students in 2022.
Read the announcement from Berwick.
Read the announcement from Danville.
Read the announcement from Bloomsburg.
Columbia County Christian School Building Project Progresses
Columbia County Christian School is celebrating progress on their new Arts & Athletic Center. "Concrete is down, the beams are up, and the sunrise/sunset photos behind the project are beautiful!" You can follow the progress on the new facility on their Facebook page.
Spending Reductions Critical to Curbing Inflation
While critical of the spending levels in several recent packages passed in Washington, Congressman Dan Meuser believes there are solutions to strengthen the U.S. economy and begin to reduce debt. Meuser (PA-9) discussed the factors contributing to inflation in a breakfast meeting with members of the Columbia Montour Chamber of Commerce on Thursday, August 25th. The program was sponsored by PPL Electric Utilities and hosted by Craft Catering. 
In an update that included the Congressman’s committee service and recent legislation, Meuser shared that as a member of the Problem Solvers Caucus, he worked with colleagues from both parties to advance the transportation infrastructure package that was passed in late 2021, as well as the CHIPS Act, designed to boost the domestic production of microprocessors. The Congressman was not in favor of the final versions of either bill, due to billions of dollars in spending added to both. While he supported large spending packages during the early days of the COVID pandemic to support employers, the medical industry, and displaced workers, Meuser believes reductions in spending are necessary to curb inflation.
Meuser stressed his vocal opposition to the recently passed Inflation Reduction Act, which he argues will have the opposite effect on inflation - increasing taxes on energy and implementing a minimum tax on corporations. The bill also doubles the number of IRS agents by 87,000, a staffing increase that, according to the Congressman, will not generate the additional projected revenue due to the urgent need of the agency to update its processes and quality of information. While the legislation stipulates that businesses and individuals earning less than $400,000 will not be audited, 91% of current audits are conducted on those earning less than $400,000, according to Meuser.
Switching from domestic spending to foreign affairs, Meuser believes that, despite an over-reliance on goods produced in China, our significant trade relationship will help avoid an invasion of Taiwan. Stressing the importance for the U.S. to be more competitive globally, he noted that the 21% corporate tax rate is “in the middle of the pack”. From a domestic security perspective, he also discussed the need to revisit polices related to Afghanistan and southern border security, sharing insights he’s received from military and border patrol personnel. 
As the 9th Congressional District is set to expand geographically as a result of redistricting, guests at the event expressed gratitude for the Congressman’s engagement with the Chamber. Concluding the event, Chamber President Fred Gaffney informed participants that the Consumer Financial Protection Bureau may be revising “employer-driven debt” policies that could make hiring employees more challenging. Employers have until September 7th to provide comments.
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Webinar: Pennsylvania Restaurant & Lodging Association to Host PA Minimum Wage Act Updates
On Wednesday, September 7, 2022 from 11:00am to noon, the Pennsylvania Restaurant and Lodging Association will host experts from the Pennsylvania Department of Labor & Industry for a webinar on the updated Minimum Wage Act regulations that went into effect on August 5.
Employers and other stakeholders with questions about the updated regulations are encouraged to participate in this webinar session. Bureau of Labor Law Compliance Director Bryan Smolock will review the updates and answer any questions. Send in your specific questions in advance by emailing advocacy@prla.org.
Approved by the Independent Regulatory Review Commission and Attorney General Josh Shapiro earlier this year, the final-form regulation updates how employers pay tipped workers and ensure that salaried employees with fluctuating schedules are appropriately compensated for overtime. Register for this free webinar.