The World Wide Web Consortium (W3C) established the main international standards and accessibility for the World Wide Web. The WCAG is created by the W3C to provide a standard for web content accessibility that can be shared around the world. The WCAG is meant to accompany organizations as a sort of blueprint on how to make their websites ADA compliant.

Yes, in time non-ADA compliant websites will be penalized in the search engines. It's already on their radar. But for now they are still negatively affected, just in an indirect way. Live traffic behavior (user experience) is now factored into Google's algorithm and is a ranking signal. Negative user interactions absolutely have negative affects on rankings.
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The legal issue for websites is whether website operators are operating “a place of public accommodation.” The statute lists 12 different types of public accommodations including somewhat of a catchall that includes “other sales or rental establishment.” The list, created when the law was passed in 1988, conceivably covers most commercial establishments, but does not expressly include websites.
Currently, there is a safe harbor clause that allows your existing content to remain as it is, unless altered after January 18, 2018. However, the guidelines do pertain to any page that has been updated after that date. So if you want to avoid the legal costs of being found non-compliant with the ADA, it’s best to make the necessary changes to your website now.

The words in the tag should be more than a description. They should provide a text equivalent of the image. In other words, the tag should include the same meaningful information that other users obtain by looking at the image. In the example of the mayor’s picture, adding an “alt” tag with the words “Photograph of Mayor Jane Smith” provides a meaningful description.

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