Form 8826

Form 8826 is used to claim the Disabled Access Credit — a nonrefundable federal tax credit of up to $5,000 for eligible small businesses that incur costs to provide access to persons with disabilities as required by the Americans with Disabilities Act (irs.gov/forms-pubs/about-form-8826).

Form 8826 (Disabled Access Credit) allows eligible small businesses to claim a nonrefundable tax credit equal to 50% of eligible access expenditures that exceed $250 but do not exceed $10,250 — yielding a maximum annual credit of $5,000. The credit is claimed on Form 3800 (General Business Credit) and reduces the business's federal income tax liability dollar-for-dollar. Eligibility requirements under IRC §44: The business must have either (1) gross receipts of $1 million or less in the preceding tax year, or (2) no more than 30 full-time employees during the preceding tax year. Qualifying expenditures include: removing physical barriers that prevent access by disabled individuals (ramps, widened doorways), providing qualified interpreters or audio materials for hearing/vision-impaired customers, and acquiring adaptive equipment or services to comply with ADA requirements. The ADA's accessibility standards (ada.gov/law-and-regs/design-standards/) define what counts as compliant access. This credit applies to existing businesses making their premises or services accessible — it does not apply to expenditures required for new construction (which must already comply with ADA). Amounts deducted as business expenses must be reduced by the credit claimed; only the excess is deductible. The credit carries forward if not fully used against current-year tax. IRS guidance is at irs.gov/pub/irs-pdf/f8826.pdf.

Examples

Frequently asked questions

Can any business claim the Disabled Access Credit?

No — only eligible small businesses: those with gross receipts of $1 million or less OR 30 or fewer full-time employees in the prior year. Larger businesses must still comply with the ADA but cannot claim this credit. New construction is also excluded (irs.gov/forms-pubs/about-form-8826).

Is the Disabled Access Credit refundable?

No. It is a nonrefundable general business credit — it reduces federal income tax liability to zero but does not generate a refund. Unused credit can be carried back 1 year and forward up to 20 years under the general business credit rules (IRC §39). The credit flows through Form 3800.

Can I deduct ADA expenses AND take the credit?

Not for the same dollars. The amount of the disabled access credit reduces the otherwise allowable business expense deduction. If you spend $10,000 on qualifying access improvements and claim a $4,875 credit, your deductible expense is reduced to $10,000 − $4,875 = $5,125 (irs.gov/pub/irs-pdf/f8826.pdf).

Related terms

Further reading