How to Qualify for the ADA Tax Credit

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 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.

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 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;
• 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 the credit.

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.

If you work in a small to midsize clinic, your company could very well qualify (but, as with anything tax-related, we strongly suggest you consult with a tax advisor regarding your eligibility). Talk about #winning.

Get your mitts on the paperwork.

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

Take stock of the impending deadline.

The deadline for next year’s tax filing is just before the stroke of midnight (11:59 PM, to be exact) on December 31, 2023. With a little more than two months before the deadline, 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 catalogue of ADA-compliant equipment and products—everything from treatment tables to cardio equipment—that meet eligibility criteria for the ADA tax credit. 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?

As Nike and Shia would say, just do it. Ultimately, your patients—and your wallet—will be better off for it in the long run.

For any additional questions about the ADA tax credit, drop ‘em below and we will do our best to help!