A tax credit is a dollar-for-dollar reduction in the amount of tax owed.  A tax deduction reduces taxable income, so it is only worth whatever your tax rate is.  For example, if you owed $4,500 in income tax, but then you receive a $3,000 tax credit, well then, your new balance owed is only $1,500.

An eligible business is any business that, in the preceding tax year, has Gross Receipts of $1,000,000 or less or had fewer than 30 full-time employees during the preceding tax year.  In this case, the definition of a “full-time employee” would be someone who was employed at least 30 hours per week, for 20 or more calendar weeks in the tax year.

Notice the definition says “or” … it does not say, “and”.

If you have gross receipts over $1,000,000, but less than 30 full-time employees, you are still eligible!

The credit is 50% of amounts above $250 (up to a maximum of $10,250) paid to comply with applicable requirements under the Americans With Disabilities Act of 1990 … such as making your website accessible. This works out to a maximum credit of $5,000.

This credit can be used annually too. The credit is non-refundable, but any unused credit is carried forward to the next year.

This means that any Compliance Package that you purchase from SiteCompliance.io could essentially end-up being 50% off at the end of the year, due to you being able to take 50% of the purchase price off on your taxes. And since the SiteCompliance.io packages are billed annually, that means you can potentially write off up-to 50% of your compliance package cost, each year!

Here are before and after examples of the SiteCompliance.io packages, taking into account this tax credit. Remember though, there is no credit for the first $250 of expenses.

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SiteCompliance.io Starter Package:

Price: $997

Potential Tax Credit: $373.50

Starter Package Price After Tax Credit: $997 > $623.50

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SiteCompliance.io Professional Package:

Price: $2,997

Potential Tax Credit: $1,373.50

Professional Package Price After Tax Credit: $2,997 > $1,623.50

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SiteCompliance.io “Cover My Ass” Package:

Price: $4,995

Potential Tax Credit: $2,372.50

“Cover My Ass” Package After Potential Tax Credit: $2,622.50

An eligible small business may claim the credit on IRS Form 8826 Disabled Access Credit

*This material is for informational purposes only and should not be relied on for tax, legal, or accounting advice.  SiteCompliance.io is not providing tax, legal, or accounting advice.  You should consult with your own tax, legal, and accounting advisor or professional before proceeding with this information.