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Tax Incentives Available for Businesses who Comply with the ADA

mark handler

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Tax Incentives Available for Businesses who Comply with the ADA

Sunday, 13 May 2012 09:47

http://www.whatdisability.com/universal-design/213-tax-incentives-available-for-businesses-who-comply-with-the-ada

Two Federal tax incentives are offered to businesses who comply with the Americans with Disabilities Act (ADA). They can assist in covering cost associated with improving access. In order to use the tax credit businesses must incur eligible expenses that year associated with barrier removal. The tax credits cannot be used for cost incurred in new construction.

"Business Expenses" Tax Deduction (IRS Code Section 190). Businesses of any size may deduct up to $15,000 per year for cost associated with barrier removal.

IRS Publiction 535

http://www.irs.gov/pub/irs-pdf/p535.pdf

Disabled Access Credit (Internal Revenue Code, Section 44). This credit is available to small businesses (30 or fewer employees or total revenues of less than a mllion). A credit may be taken for half of eligible expenses up to $10,250 (no credit received for first $250). Eligible expenses include barrier removal and providing or modifying equipment for accessibility, providing information in multiple formats, providing services that improve accessibility.

IRS Form 8826

http://www.irs.gov/pub/irs-pdf/f8826.pdf

Can both tax incentives be used? Yes. If a small business spends more than $10,250 they can deduct the difference between the amount spent and the amount applied to the Credit ($5,000).
 
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