How to Qualify for ADA Tax Credit Benefits

While you’re no doubt laser-focused on providing quality care to your patients, you may occasionally overlook some administrative tasks. You’re busy; it happens. I’m not trying to add one more thing to the list of worries that keep you tossing and turning at night; however, I do want to make you aware of a benefit you may be entitled to—but missing out on.

I’m talking about the ADA tax credit benefits for therapy clinics of up to $5,000, which helps practices like yours offset their spending on equipment, products, and services for employees or patients with disabilities. Getting money back for out-the-door costs you’ve already spent? Sounds like a no-brainer—and we want to help you collect as much as possible. Here’s how:

Track your ADA-eligible expenditures.

If you’ve spent money to equip your clinic with ADA-compliant items, you could be eligible to receive money back—maybe not the full $5,000, but, as the saying goes, a penny saved is a penny earned. The tax credit will cover 50% of your total costs when you spend between $250 and $10,250 in eligible ADA expenditures over the course of a year. (The first $250 is not eligible, which is why it’s a maximum of $5,000.)

Note: This calculator is in no way affiliated with the US government, and its calculations are intended as estimates only. WebPT assumes no legal or financial liability in association with the use of this calculator. All amounts are rounded to the nearest dollar.

So, what does the tax credit cover, you ask? You can use it to offset the costs of:

• Purchasing certain adaptive equipment for individuals with disabilities;
• Removing barriers and making alterations in and around your building to improve accessibility;
• Providing accessible communication formats (like Braille, large print, and audio tapes) to the visually- and hearing-impaired; and
• Offering a sign-language interpreter or reader for customers or employees.

Determine whether your clinic qualifies for ADA tax credit benefits.

The ADA tax credit is available to rehab clinics that:

• have total revenues of $1 million or less in the previous tax year, or
• employ fewer than 31 full-time employees. (For the purposes of the tax code, an employee is someone working at least 30 hours a week for at least 20 calendar weeks of the year.) 

If your clinic classifies as a small business, you could very well qualify (but, as with anything tax-related, we strongly suggest you consult with a tax advisor regarding your eligibility). Rehab therapy practices for the win.

Get your mitts on the paperwork.

Don’t worry about searching the Internet far and wide for this trusty tax form—we’ve got you covered. Download IRS Form 8826 to write off certain equipment or supply purchases to claim your tax credit. Need more information or still have questions? Learn more about ADA tax credit benefits, available under Section 44 of the IRS code, from this factsheet. 

Take stock of filing deadlines.

While individual tax returns are due on April 15 (yes, every year), business tax deadlines can vary based on the type of business entity you have. As this article from Intuit notes, C-corporations operating on a calendar year are required to file by April 15, whereas corporations operating on a fiscal year calendar need to file by the 15th day of the fourth month after the end of their fiscal year. If you’re unsure of when your taxes are due, it’s a good idea to consult with a tax attorney.   

Whenever your tax deadline is, now’s the perfect time to look into your practice’s tax incentive options. Once you determine whether you qualify for the ADA credit, see if there’s anything you can do to increase the amount of your refund from Uncle Sam. (Hint: you may need to spend more money on ADA-eligible items.)

Shop for ADA-compliant equipment in our Marketplace.

Looking to up the ante on your ADA tax credit? WebPT makes it easy for you to maximize the amount of your incentive. Our Marketplace team has curated an extensive catalog of ADA-compliant equipment and products—everything from treatment tables to cardio equipment—that meet the ADA tax credit eligibility criteria. Plus, our prices are already up to 25% off wholesale—so you’ll get even more bang for your buck. Shop the WebPT Marketplace and start saving today!

No one likes throwing money down the drain. So, why not kill two birds (okay, we don’t actually condone harming our feathered, winged friends) with one stone by:

1. buying some ADA-accessible equipment for your clinic, and
2. reaping some pretty big tax-credit rewards?

Going into the new year is all about starting fresh with new gusto to forge ahead into the future. And nothing can speak more to your clientele than to have a shiny new piece of equipment ready for them to use in the new year. Using the WebPT Marketplace is just the ticket to get some equipment with ADA tax credit benefits—and a few extra baubles—just in time for the new year.