Tax Incentives

IA Small Business Tax Deduction	Barrier Removal Tax Deduction
Work Opportunity Tax Credit	Small Business Access Tax Credit
	IA Small Business Tax Credit

Brief Overview of Business Tax Credits & Deductions related to
Specific Populations of Individuals

Barrier Removal Tax Deduction (Federal Architectural & Transportation Tax Deduction) Click for detailed information	The cost of an improvement to a business asset is normally a capital expense. However, you can choose to deduct the costs of making a facility or public transportation vehicle more accessible to and usable by those who disabled or elderly. Business may take an annual deduction for expenses incurred to remove physical, structural, and transportation barriers.	All taxpaying businesses are eligible. Deduction up to $15,000 per year for qualified architectural and transportation barrier removal expenses.
Small Business Access Tax Credit (Federal Disabled Access Tax Credit for Small Businesses) Click for detailed information	The disabled access credit is a nonrefundable annual tax credit for an eligible small business that pays or incurs expenses to provide access to persons with disabilities.	Small businesses that in the previous year earned $1 million or less in gross receipts or had 30 or fewer full-time employees are eligible.
Work Opportunity Tax Credit (WOTC)(Federal) Click for detailed information	The Work Opportunity Tax Credit (WOTC), provides a tax credit for employers hiring individuals from certain targeted groups (see detailed information).	An employer may take a tax credit of up to 40% of the first $6,000 in the first year wages per qualifying employee. The maximum per employee is $2,400 per tax year. (see detailed information)
Iowa Small Business     Income Tax Credit (Iowa Assistive Device Tax Credit for Small Business) Click for detailed information	Iowa Small Businesses can reduce their taxes by buying or renting products or equipment, or by making physical changes to the workplace to help employees with disabilities get or keep a job.	To qualify a business must be in Iowa and employ no more than 14 employees OR have $3 million or less in annual gross receipts. Credit equals 1/2 of first $5,000 in qualifying expenses with a $2,500 annual cap.
Iowa Small Business Income Tax Deduction Click for detailed information	Iowa Small Businesses that meet the criteria (see detailed information) are allowed an additional deduction on their Iowa Income Tax return. A small business cannot have more 20 full-time employees or make more than $3 million in annual gross revenues.	This deduction is in addition to the Work Opportunity Tax Credit. This deduction is 65% of the wages paid in the first 12 months of employment; the deduction ceiling is $20,000 per employee.