Are there any special tax credits available for businesses that employ disabled workers?
Yes, businesses that employ disabled workers in California may be eligible for special tax credits. The California Disabled Access Credit (CDAC) is a tax credit available to small businesses that incur costs to provide access to disabled individuals. To qualify, businesses must have fewer than 50 employees and spend at least $250, but not more than $10,000, for disability access compliance. The credit is worth 50% of disability access expenditures over the taxable year, up to a maximum of $5,000. Additionally, businesses may claim a federal tax credit, known as the Work Opportunity Tax Credit (WOTC), for hiring disabled workers. The amount of the credit depends on the number of workers hired, but can range from $2,400 to $9,600. In order to qualify for the credit, the business must meet certain criteria, such as hiring a qualified disabled individual who begins work within the timeframe specified by the WOTC. To apply for the CDAC and WOTC credits, businesses must fill out the appropriate forms and submit them to the California Department of Rehabilitation and the Internal Revenue Service respectively.
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