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SMALL BUSINESS TAX CREDIT (IRS Code Section 44)
Small businesses may take an annual tax credit intended to cover the cost of making their businesses accessible to persons with disabilities (employees or customers).
Eligibility:
Small businesses with previous year earnings $1 million in revenue or less, or had 30 or fewer full-time employees.
Amount:
A maximum benefit of $5,000. The credit amount is subtracted from the total tax liability.
Qualifying Expenses:
The credit is available every year and can be used for a variety of costs such as:
- sign language interpreters for employees or customers who have hearing impairments;
- readers for employees or customers who have visual impairments;
- the purchase of adaptive equipment or the modification of equipment;
- the production of print materials in accessible formats (e.g., Braille, audio tape, large print);
- the removal of barriers, in buildings or vehicles, which prevent a business from being accessible to, or usable by, individuals with disabilities; and
- fees for consulting services (under certain circumstances.)
Expenses must be paid or incurred to enable a small business to comply with the requirements of the Americans with Disabilities Act.
The tax credit does not apply to the costs of new construction, and a building being modified must have been placed in service before November 5, 1990.
To Claim Credit:
Complete IRS Form 8826, Disabled Access Credit
Additional Information:
http://www.ada.gov/taxpack.pdf
or call
800-829-3676 (voice)
800-829-4059 (TTY)
Updated: November, 2008
