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Business Tip of the Month

Business Tip
of the Month
For the month of August 2002

Get tax breaks for making your business more accessible to the disabled

Did you know there are tax incentives for making your business more accessible to individuals with disabilities? There are two tax breaks that may help offset the cost of bringing your business into compliance with the Americans with Disabilities Act (ADA).

The ADA is a civil rights law that provides disabled individuals with an equal opportunity to work and to take part in everyday activities. The ADA affects all businesses who provide goods and services to the public.

Tax credit. If your business had $1 million or less in gross revenue or employed no more than 30 full-time workers in the previous year, you can claim a tax credit to help offset your ADA-related expenses. There is no credit for the first $250 of expenses, but a 50% credit applies to the next $10,000 you spend in any year, for a maximum $5,000 annual credit. To qualify for the credit, your expenses must fall into one of several categories:

  • Architectural changes made to an existing building, such as adding a wheelchair ramp or widening doorways.
  • Equipment purchases, such as installing a wheelchair lift in a company vehicle or buying a voice-activated computer.
  • Special services, such as providing sign language interpreters or readers for visually impaired individuals.
  • Special versions of printed materials for the disabled, such as Braille or audio versions of instruction manuals.

Tax deduction. Businesses of any size can take up to a $15,000 annual tax deduction for amounts spent to remove architecture or transportation barriers.

A word of caution. The IRS has warned of fraudulent investment schemes where scam artists sell expensive equipment to individuals claiming it's eligible for the disabled access credit. In fact, this credit is only available to businesses who meet the criteria above.

If you have questions about the disabled access tax breaks, please contact our office.

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