For Employers

Maryland Disability Employment Tax Credit (MDETC)

The MDETC encourages employers to hire qualified people with disabilities.

It allows a credit of an amount equal to 30% of up to the first $6,000 ($1,800) of wages paid during the first year and 20% of up to the first $6,000 ($1,200) of wages paid during the second year of employment.

Under the MDETC, there is also a tax credit for employer-paid child care or transportation expenses. This amounts to a credit of up to $600 of expenses during the first year and up to $500 for the second year.

For-profit employers may claim a credit against state income tax. Organizations exempt from taxation under 501(c)(3) or (4) may claim a credit on income tax due on unrelated business income or withholding taxes.

Federal Tax Incentives

Three Federal tax incentives support businesses as they remove architectural barriers and accommodate employees and/or customers with disabilities.

1. Architectural/Transportation Tax Deduction
Any business can use this deduction to remove existing barriers in buildings or in transportation vehicles. IR Code Section 190, Barrier Removal.

Possibilities: 

• Hiring a reader to tape record instructions for an employee who is blind.
• Widening doors to allow individuals easier access to break rooms.
• Re-painting a parking lot to allow for more parking for people with disabilities.

2. Disabled Access Credit
Small businesses use this tax credit to remove architectural barriers and to buy equipment, aids or services. IR Code Section 44.

Possibilities:

• Sign language interpreters for employees who need them during performance reviews.
• Production of Braille or large print for documents for instruction manuals.
• Purchase of an adjustable height desk for an individual who uses a wheelchair.
• Removing steps to closet where employees must go to get supplies.

3. Work Opportunity Tax Credit (WOTC)
Employers gain a tax credit for hiring workers from certain targeted low-income groups, including individuals referred from vocational rehabilitation programs.  IR Code Section 51.