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Small Business Tax Credit (Internal Revenue Code Section 44: Disabled Access Credit)

Small businesses with either $1,000,000 or less in revenue or 30 or fewer full-time employees may take a tax credit of up to $5,000 annually for the cost of providing reasonable accommodations such as sign language interpreters, readers, materials in alternative format (such as Braille or large print), the purchase of adaptive equipment, the modification of existing equipment, or the removal of architectural barriers.

 

Section 44 Tax Credit The tax credit, established under Section 44 of the Internal Revenue Code, was created in 1990 specifically to help small businesses cover ADA-related “eligible access expenditures.” A business that for the previous tax year grossed less than $1,000,000 in revenue or who employed fewer than 30 full-time workers is an “eligible small business” for the Disabled Access Credit. The Disabled Access Credit is available to an “eligible small business” and is equal to 50% of the “eligible access expenditures” which exceeds $250 but does not exceed $10,250, for a maximum credit of $5,000 a year. Example: The MAT, Multiple Applications Table, can be used for a tax credit because it allows easier access for patients with disabilities. 

 

For example we will use a table that costs $9,700. Subtract $250 because the “eligible access expenditure” must exceed $250. This leaves $9,450. 50% of $9,450 is $4,725. The tax credit for a $9,700 MAT table is $4,725. The remaining $4,975 can be used as a standard tax deduction per your taxable income bracket. 

 

Consult your accountant for this unique cost-saving opportunity.