December 2002

Business Tax Incentives: Incentives to Employ Workers with Disabilities Receive Limited Use and Have an Uncertain Impact

Recent U.S. Census data show that more than 17 million working-age individuals have a self-reported disability that limits work. These data also show that the unemployment rate for those who have a work disability is more than twice as high as for those without a work disability. Recognizing the many barriers to employment faced by people with disabilities, the Congress and the administration have had a long-term and continuing interest in ensuring that people with disabilities fully participate in society and become self-sufficient. Numerous federal programs and incentives support these goals and are designed to encourage those with disabilities to prepare for and participate in the workforce, including three tax incentives to encourage businesses to hire, retain, or accommodate workers with disabilities.