Federal and state programs are specifically designed to reduce the cost of hiring people with disabilities, from tax credits that offset wages to grants that fund workplace accommodations. If you're an employer in Western New York (or anywhere in the U.S.), here's what you may be eligible for.
1. Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credit is the largest and most widely used federal incentive for hiring people from targeted groups, including individuals with disabilities. It's administered by the IRS in partnership with state workforce agencies.
For hiring an individual with a disability, WOTC provides a tax credit of up to $2,400 per qualifying employee in the first year. For qualified long-term recipients, the credit can reach up to $9,600 per employee.
How to Qualify
To claim WOTC, you must submit IRS Form 8850 to your state workforce agency within 28 days of the employee's start date. The employee must work at least 120 hours (for a partial credit) or 400 hours (for the full credit). There's no limit on the number of qualifying employees you can claim.
Eligible groups include: individuals referred by Vocational Rehabilitation agencies (like New York's ACCES-VR), veterans with service-connected disabilities, and recipients of Supplemental Security Income (SSI).
2. Disabled Access Credit (Section 44)
The Disabled Access Credit is specifically designed for small businesses (those with 30 or fewer full-time employees or $1 million or less in gross receipts). It covers costs related to making your workplace accessible.
Eligible expenses include: removing architectural barriers, providing readers or interpreters, acquiring or modifying equipment, and producing materials in accessible formats (Braille, large print, audio).
3. Architectural Barrier Removal Deduction (Section 190)
Unlike the Section 44 credit, the Section 190 deduction is available to businesses of any size. It allows you to deduct up to $15,000 per year for expenses incurred in removing physical barriers to accessibility in the workplace.
This covers modifications like widening doorways, installing ramps, modifying restrooms for wheelchair access, and creating accessible parking spaces. Businesses can use both Section 44 and Section 190 in the same year for different expenses.
"Many of the employers we work with are surprised to learn they qualify for multiple incentive programs simultaneously. The financial case for inclusive hiring is often stronger than people realize." — Innovative Placements of WNY
4. New York State-Specific Programs
In addition to federal incentives, New York offers several state-level programs:
ACCES-VR Support Services
New York's Adult Career and Continuing Education Services-Vocational Rehabilitation (ACCES-VR) works directly with employers to support the hiring and retention of employees with disabilities. Services include:
- Job coaching and on-site support during the onboarding period, at no cost to the employer
- Workplace accommodation consultation to identify low-cost or no-cost adjustments
- Pre-screened candidate referrals from a pool of job-ready individuals who have completed vocational training
Innovative Placements partners directly with ACCES-VR and other agencies. When you work with us, we handle the coordination — connecting you with pre-screened candidates, managing the referral process, and helping you access every applicable incentive. Our 94% placement success rate across 3,000+ placements reflects the quality of this support.
NYS Workers with Disabilities Tax Credit
New York State offers an additional tax credit of up to $2,100 per qualifying employee for businesses that hire individuals with developmental disabilities through licensed providers. This stacks with the federal WOTC, meaning you can potentially claim both.
5. Employer Assistance and Resource Network (EARN)
The EARN program, funded by the U.S. Department of Labor, provides free consulting services to help employers build inclusive hiring practices. Services include:
- Customized disability inclusion strategies tailored to your industry
- Guidance on accessible job descriptions and interview processes
- Support for creating mentorship programs and employee resource groups
- Help with emergency preparedness plans that include employees with disabilities
How to Get Started
Accessing these incentives isn't as complicated as it might seem. Here's a practical path:
- Contact a placement agency. Organizations like Innovative Placements of WNY specialize in connecting employers with qualified candidates and navigating the incentive landscape.
- Identify eligible positions. Work with your HR team or placement partner to determine which roles are a good fit for supported hiring.
- Submit WOTC paperwork early. File IRS Form 8850 within 28 days of each qualifying hire. Your placement partner can help with this.
- Document accommodation expenses. Keep records of any accessibility modifications for Section 44 and Section 190 claims.
- Consult your accountant. Ensure all credits and deductions are properly applied to your tax return. Many accountants underutilize these programs simply because they're unaware of them.
The Bigger Picture
These tax credits and incentives exist because inclusive employment benefits everyone. Employers gain access to a dedicated, often-overlooked talent pool. Employees gain independence, stability, and purpose. Communities benefit from reduced reliance on assistance programs and increased economic participation.
In Western New York alone, thousands of individuals with disabilities are job-ready and actively seeking employment. The financial incentives simply reduce the friction that sometimes prevents employers from taking the first step. Once they do, the results speak for themselves: higher retention rates, strong team morale, and a workforce that reflects the full diversity of the community.
Between WOTC (up to $9,600 per employee), the Disabled Access Credit ($5,000/year), the Barrier Removal Deduction ($15,000/year), and New York State credits (up to $2,100 additional), the financial incentives for inclusive hiring are substantial — and they're designed to be accessible to businesses of every size.
Let Us Help You Navigate the Process
At Innovative Placements of WNY, we've guided employers through this process for over a decade. With more than 3,000 successful placements and a 94% success rate, we know how to match the right candidates with the right opportunities — and we handle the coordination with ACCES-VR and other partner agencies so you don't have to.
If you're ready to explore inclusive hiring and the incentives that come with it, reach out to us. The first conversation costs nothing, and it might change how you think about building your team.