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Federal Small Business Disabled Access Tax Credit

(Access Related Tax Incentive)

Disabled Access Tax Credit (Small Business)
Internal Revenue Code 44, Disabled Access Credit
IRS Form 8826
  
 

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What is it?
Who is eligible?
What is the amount?
What expenses are covered?
What expenses are not covered?
May I use the tax credit and tax deduction together?
Are there limits on annual usage?
How can this credit be deducted?
Where can I obtain additional information?

What is it?  Small businesses may take an annual tax credit for making their businesses accessible to persons with disabilities.

Who is eligible? Small businesses that in the previous year earned a maximum of $1 million in revenue or had 30 or fewer full-time employees are eligible.

What is the amount? The credit is 50% of expenditures over $250, not to exceed $10,250, for a maximum benefit of $5,000. The credit amount is subtracted from the total tax liability after calculating taxes. Back to the top.

What expenses are covered? The credit is available every year and can be used for a variety of costs such as:

  • sign language interpreters for employees or customers who are  hard of hearing;

  • readers for employees or customers who have visual impairments;

  • the purchase of adaptive equipment or the modification of equipment;

  • the production of print materials in alternate formats (e.g., Braille, audio tape, large print);

  • the removal of architectural barriers in buildings or vehicles.

What expenses are not covered? The tax credit does not apply to the costs of new construction, and a building being modified must have been placed in service before November 5, 1990.

May I use the tax credit and tax deduction together? Small businesses may use the credit and deduction together, if the expenses incurred qualify under both Sections 44 and 190. For example, if a business spent $12,000 for access adaptations, it would qualify for a $5,000 tax credit and a $7,000 tax deduction.

Are there limits on annual usage? Although both the tax credit and deduction may be used annually, if a business spends more than may be claimed in one year, it cannot carry over those expenses and claim a tax benefit in the next year.             Back to the top.

How can this credit be deducted? Businesses can claim this credit on IRS Form 8826.

Where can I obtain additional information?
Office of Chief Counsel, IRS
1111Constitution Avenue, NW
Washington, DC 20224
(202)622-3110

                 

 

 

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