The Disability Employment Incentive Act, introduced in the Senate on October 18, 2023, aims to enhance opportunities for individuals with disabilities in the workforce by expanding tax incentives for employers. Here’s a breakdown of its key provisions:
- Expansion of Work Opportunity Tax Credit (WOTC):
- The bill broadens the scope of the WOTC to include employees who receive disability insurance benefits under the Social Security Act.
- Employers hiring vocational rehabilitation referrals, Supplemental Security Income recipients, or Social Security Disability Insurance (SSDI) recipients would benefit from:
- Increased consideration of wages for the credit.
- An additional credit for second-year wages, encouraging long-term employment of individuals with disabilities.
- Enhancement of Tax Credit for Accessible Infrastructure:
- Eligible small businesses investing in infrastructure to accommodate disabled individuals would receive increased benefits.
- Limits on eligible expenditures for the tax credit would be raised.
- Criteria regarding gross receipts and full-time employees for small businesses to qualify for the credit would be adjusted.
- Expansion of Tax Deduction for Accessibility Expenses:
- The bill modifies the tax deduction available for expenses related to removing architectural and transportation barriers for the handicapped and elderly.
- Changes include:
- Raising the deduction limit.
- Including expenses for enhancing accessibility of internet or telecommunications services for handicapped and elderly individuals.
Overall, the bill aims to incentivize employers to hire and retain individuals with disabilities while promoting accessibility and inclusivity in the workplace and beyond.
