If you are planning improvements or equipment updates, you should consider the “Disabled Access Credit”. The credit is equal to 50% of the first $10,250 (first $250 is excluded) for a maximum credit of $5,000. Don’t forget that a credit equals a direct reduction of taxes dollar for dollar.
The credit can only be claimed by a qualified small business that is making their premises more accessible to disabled individuals. A “qualified small business” is one with gross receipts of $1 million or less, or one that didn’t employ more than 30 full-time employees in the preceding tax year.
The expenses must be incurred to meet requirements established by the American Disabilities Act (ADA). For instance, a small business can claim the credit for the following costs:
- Removal of architectural, communication, physical, or transportation barriers that prevent a business form being accessible to, or usable by, disabled individuals.
- Providing qualified interpreters or other effective methods of making orally-delivered materials available to hearing-impaired individuals.
- Providing qualified readers, taped text, and other effective methods of making material available to visually impaired individuals.
- Acquiring or modifying equipment or devices for disabled individuals.
- Providing other similar services, modifications, materials, or equipment.
The modifications do not have to exclusively benefit disabled individuals.
Like any good CPA, I need to add a disclaimer: Unfortunately, it is impossible to offer comprehensive tax info over the internet, no matter how well researched or written. And remember, I love my readers but having me bookmarked on your computer doesn’t make you a client: before relying on any information given on this site, contact a tax professional to discuss your particular situation.