Why Disability Hiring Tax Credits Matter: Leveling the Playing Field for Inclusive Employment

In a world where equity and inclusion are increasingly valued, people with disabilities continue to face significant barriers to employment. Many people with disabilities have a strong desire to work, and have skills and talents that would make them a valued asset to a company, however, they face significantly higher unemployment rates than their typical peers.

Why Employment Matters for People with Disabilities

Employment is more than a paycheck. For individuals with disabilities, access to meaningful work contributes to self-esteem, independence, and a sense of belonging in the community. It promotes mental health, builds confidence, and allows people to contribute their talents to society.

Unfortunately, the employment gap is stark: only about 23% of working-age people with disabilities are employed, compared to nearly 65% of those without disabilities (Bureau of Labor Statistics, 2024). This is not due to a lack of willingness or ability to work—but a lack of opportunity and systemic barriers.

When people with disabilities are employed:

• They gain financial independence and reduce reliance on public benefits.

• They build valuable social connections and life skills.

• They serve as role models for others, breaking down stigma and reshaping public perceptions.

• They contribute meaningfully to the economy and workplace diversity.

Inclusion through employment is one of the most powerful ways society can affirm the inherent worth, dignity, and capability of every person.

Breaking Down Barriers to Employment

The Work Opportunity Tax Credit (WOTC) is a federal incentive that encourages businesses to hire individuals from groups that face employment challenges, including people with disabilities. Tax incentives like the WOTC reduce perceived risks for employers and encourage them to look beyond stereotypes. By providing a financial offset for onboarding and support, WOTC makes it more likely that businesses will give individuals with disabilities a fair chance to thrive.

Fueling Transition and Supported Employment Programs

For young adults with intellectual or developmental disabilities, transition programs are a key part of moving from school to adulthood. Many rely on partnerships with businesses to offer job placements, training, and mentorship. These partnerships often depend on tax credits like WOTC to make participation feasible—especially when job coaching or accommodations are needed.

Strengthening the Economy Through Inclusive Hiring

Diverse workplaces are more productive, innovative, and adaptive. Hiring people with disabilities strengthens the workforce and helps employers better serve a broader customer base. Inclusion benefits everyone—not just those hired.

What’s at Stake

The WOTC is set to expire on December 31, 2025. If federal budget cuts eliminate or weaken hiring incentives like the WOTC:

• Fewer businesses will take a chance on workers who need support.

• Supported Employment programs that support Transition services may end, closing the door to future independence.

• The employment gap will widen, increasing poverty and social isolation among people with disabilities.

Employers, educators, families, and advocates must come together to protect and expand the Work Opportunity Tax Credit and similar programs. Inclusive employment is a justice issue, an economic issue, and a human rights issue.

✔ Contact your lawmakers

✔ Share this message with business owners and local leaders

✔ Encourage others to value and invest in an inclusive workforce.

People with disabilities deserve the same access to opportunity as everyone else. Employment is a right—not a privilege. Let’s make sure our policies reflect that.