Businesses can take advantage of two Federal tax incentives available to help cover costs of making access improvements for customers with disabilities:
• A tax credit for small businesses who remove access barriers from their facilities, provide accessible services, or take other steps to improve accessibility for customers with disabilities
• A tax deduction for businesses of all sizes that remove access barriers in their facilities or vehicles
A business that annually incurs eligible expenses to bring itself into compliance with the ADA may use these tax incentives every year. The incentives may be applied to a variety of expenditures; however, they may not be applied to the costs of new construction. All barrier removal must comply with applicable Federal accessibility standards.
Small businesses with 30 or
fewer employees or total revenues of $1 million or less can use the Disabled Access Credit (Internal Revenue Code, Section 44). Eligible small businesses may take a credit of up to $5,000 (half of eligible expenses up to $10,250, with no credit for the first $250) to offset their costs for access, including barrier removal from their facilities (e.g. widening a doorway, installing a ramp), provision of accessibility services (e.g. sign language interpreters), provision of printed material in alternate formats (e.g. large-print, audio, Braille), and provision or modification of equipment.
Tax Incentives Forms and Publications
Visit the Internal Revenue Service website at www.irs.gov or call
800-829-3676 (voice); 800-829-4059 (TTY) to order the necessary business forms and publications: Form 8826 (Disabled Access Credit) and Publication 535 “Business Expenses” (tax deduction) .