Don’t Overlook the Disabled Access Tax Credit on Your Business Tax Return

The ADA Law

The Americans with Disabilities Act of 1990 (ADA) requires employers to make their workplaces accessible to disabled individuals.  It prohibits discrimination against individuals with disabilities. However, the cost of making these accommodations to your business is expensive. To encourage small businesses to be accessible to individuals with disabilities and to comply with ADA, the Disabled Access Credit provides a non-refundable credit for small businesses that incur expenditures for the purpose of providing access to persons with disabilities.

How Much is the Credit?

The amount of the tax credit is equal to 50% of the eligible access expenditures in a year, up to a maximum expenditure of $10,250. There is no credit for the first $250 of expenditures. The maximum tax credit, therefore, is $5,000.

Who Qualifies?

This small business tax credit is available exclusively to businesses that earn $1 million or less in gross receipts or have no more than 30 full time employees in the previous year. You may take the credit each and every year you incur access expenditures. However, you may not carry over expenses form one year to the next year. Note that the credit cannot be used for the costs of new construction. It can be used only for adaptations to existing facilities that are required to comply with the ADA.

If you area unsure how the ADA law might affect your tax return, Klein Hall CPAs can help you determine if you are eligable. With tax preparation and planning services for individuals and businesses alike, we’re prepared to help you make the best decisions for you. Contact us today to learn more!