| Which businesses are eligible? |
Small businesses are eligible if they:
1. earned no more than $1 million in the previous tax year,
OR
2. employed 30 or fewer full-time employees during the preceding year. (“Full-time” means working at least 30 hours per week for 20 or more calendar weeks in the taxable year).
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| What is the amount of the credit? |
Up to $5,000 per year: the credit is 50% of expenditures over $250, not to exceed $10,250 for a maximum benefit of $5,000. The credit amount is deducted from the total tax liability after calculating taxes. |
| What expenses are covered? |
The credit is available every year and can be used for a variety of costs such as:
- qualified sign language interpreters for employees or customers who have hearing impairments;
- readers for employees or customers who have visual impairments;
- purchase or modifying equipment or devices to accommodate employees with disabilities;
- production of print materials in alternate formats such as Braille, audio tape, and large print;
- removal of architectural barriers in building or vehicles.
All expenditures must be “reasonable” and must meet standards set forth by the IRS.
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| What expenses are not covered? |
The tax credit does not apply to the costs of new construction and a building being modified must have been placed into service before November 5, 1990. |
| How can this credit be claimed? |
Businesses can claim the Disabled Access Credit on IRS Form 8826. For more information contact the IRS:
800-829-1040 (voice), or 800-829-4059 (TTY)
web site: www.irs.gov
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Earn Financial Incentives (cont.)