Any
qualified expenditures made after
November
5, 1990
,
the date of enactment, are eligible for the Section 44 credit.
Additionally, Section 190 of the Internal Revenue Code allows
$15,000 to be deducted
annually for qualified architectural and transportation barrier
removal expense. This provision became effective with tax year 1991.
Provisions
of Section 44
A
small business may elect to take a general business credit of up to
$5,000 annually for eligible access expenditures to comply with the
requirements of
ADA
.
Small
business is defined as a business with gross receipts of
$1 million or 30 or fewer full-time employees.
Expenditures
must be geared toward
ADA
compliance
and must be reasonable and necessary expenses. Included are amounts
related to removing barriers, providing interpreters, readers or
similar services and modifying or acquiring equipment and materials.
The credit cannot be used for new construction of facilities.
I can be used in conjunction with property improvement.
The
amount that may be taken as a credit is 50% of the amount exceeding
$250, but less than $10,250 per tax year. For instance, if $7,500 is
spent to provide a sidewalk, the credit would be $3,625 ($7,500
minus
$250 divided
by 2.)
This credit may be taken each year
ADA
improvements
are made.
This
tax credit, called the Disabled
Access Tax Credit, should be claimed on IRS Form
8826.
Section
190
Section
190 applies to all businesses and has a narrower base for
deductions. Qualified expenditures for the removal of architectural
and transportation barriers include expenses specifically
attributable to the removal of existing barriers (such as steps or
narrow doors) or inaccessible parking spaces, bathrooms and
vehicles. They may be fully deducted, up to a maximum of $15,000 for
each taxable year. Expenses from the construction or comprehensive
renovation of a facility or vehicle or the normal replacement of
depreciable property are not included.
For
further information contact your local IRS Office.
Also, the IRS Home Page also has information on these
deductions, including library of forms and publications that you can
download.
Sample Photos for
ADA
Barrier
Removal Tax Credit
