| What businesses are eligible? |
All businesses, regardless or revenues or number of employees. |
| What is the amount of the credit? |
Businesses may take a tax deduction of up to $15,000 per year; amounts over $15,000 may be depreciated. |
| What expenses are covered? |
The deduction is available every year. It can be used for a variety of costs to make a facility or transportation vehicle more accessible to and usable by persons with disabilities. Examples include the cost of:
- providing accessible parking spaces, ramps and curb cuts;
- providing telephones, water fountains, and restrooms which are accessible to persons using wheelchairs;
- making walkways at least 48 inches wide.
|
| What expenses are not covered? |
The deduction is intended to help businesses modify existing facilities or vehicles to improve accessibility, and may not be used for expenses for new construction, or for a complete renovation of a facility or public transportation vehicle, or for the normal replacement of depreciable property. |
| Can businesses use the Access Tax Credit and the Tax Deduction together? |
Yes. Small businesses may use the credit and deduction together, if the expenses incurred qualify under both Sections 44 and 190 of the Internal Revenue Code.
For example, if a business spent $12,000 for access adaptations, it would qualify for a $5,000 tax credit and a $7,000 tax deduction. |
| Are there limits on annual usage? |
Although both the tax credit and deduction may be used annually, if a business spends more than may be claimed in one year, it cannot carry over those expenses and claim a tax benefit in the next year. |
| How can this credit be deducted? |
The amount spent is subtracted from the total income of a business to establish its taxable income. In order for expenses to be deductible, accessibility standards established under the Section 190 regulations must be met. |
Earn Financial Incentives (cont.)