Tax Incentives for Improving Accessibility:

Disabled Access Tax Credit: Internal Revenue Code, Section 44.

• Eligibility: Small businesses with gross receipts under $1,000,000 the preceding year or who employed 30 or less full time employees the preceding year.

• Eligible Access Expenditures: Amounts paid or incurred by an eligible small business for the purpose of enabling small businesses to comply with Titles I and/or Titles III of the ADA.

• Examples of allowable expenditures:
  * remove architectural barriers in facilities or vehicles
  * provision of readers for customers or employees with visual disabilities
  * acquire or modify equipment or devices
  * production of accessible formats printed materials (i.e., Braille, large print, audio tape, computer diskette)
  * provision of sign language interpreters

• Non-allowable expenditures: New construction or complete renovation of a facility.

• Allowable Credit: 50% of the eligible expenditures above $250 and below that of $10,250 for a maximum credit of $5,000 a year. Credit can be carried forward 15 years and back 3 years.

• Example: A Company purchases equipment to meet its reasonable accommodation obligation under ADA for $8,000. The amount by which $8,000 exceeds $250 is $7,750. Fifty percent of $7,750 is $3,875. The company A may take a tax credit in the amount of $3,875 on its next tax return.

Tax Deductions: Internal Revenue Code, Section 190.

• Eligibility: Small and big businesses (including active ownership of an apartment building).

• Allowable expenditures: Expenditures incurred for the purpose of making any facility or public transportation more physically accessible.

• Non-allowable expenditures: New construction or complete renovation of a facility.

• Deductions: A deduction of up to $15,000 a year for allowable expenditures.

** Small businesses can use these incentives in combination if the expenditures incurred qualify under both Section 44 and Section 190.