Disabled Access Credit and Additional Tax Deduction for Barrier Removal Costs for the Disabled or Elderly

Businesses can use two federal tax incentives to help cover the costs of making access improvements for customers with disabilities or the elderly. These incentives help businesses follow the Americans with Disabilities Act (ADA).

Disabled Access Credit (Internal Revenue Code (IRC) 44)

Small businesses can get this credit if they have:

• 30 or fewer employees
• Total revenues of $1 million or less

Small businesses can get a credit of up to $5,000. This is for half of eligible expenses up to $10,250. There is no credit for the first $250.

Eligible expenses include:

• Removing barriers from facilities (for example, widening a doorway, installing a ramp)
• Providing accessibility services (for example, sign language interpreters)
• Providing printed material in alternate formats (for example, large-print, audio, Braille)
• Providing or modifying equipment

Tax credit for barrier removal costs (IRC 190)

Businesses of all sizes can use this tax deduction. They can deduct up to $15,000 per year for costs of removing barriers in facilities or vehicles for customers with disabilities or the elderly.

Using both tax incentives together

Eligible businesses can use both incentives if the expenses qualify under both IRC Sections 44 and 190. If a small business spends more than $10,250, they can get the maximum $5,000 tax credit. Then, they can deduct the difference between the total spent and the amount of the credit claimed.