The ADA Tax Credit
The Section 44: Disabled Access Credit for small businesses is available to businesses that spend between $250 and $10,250 to comply with the ADA. It is an income tax credit (not just a deduction) of 50% of the cost of equipment purchased to comply with the ADA. The maximum tax credit allowable is $5,000. No other deductions or credits are permitted for any amount for which a disabled access tax credit is allowed.
What is the ADA?
ADA stands for the Americans with Disabilities Act. It requires facilities to provide equal access and opportunity to persons with disabilities, including those in wheelchairs.
Is your practice eligible?
The tax credit is available to businesses that have total revenues of $1,000,000 or less in the previous tax year or 30 or fewer full-time employees during the previous tax year.
What the tax credit covers
If you have spent money to equip your clinic or business with ADA-compliant items, you could be eligible to receive a tax credit. Use IRS Form #8826 referencing Section 44: Disabled Access Credit. What does this credit cover?
- Equipment acquired to use in your practice, facility or clinic for disabled individuals
- Removing barriers and in and around your building to improve accessibility
- Providing accessible communication formats such as Braille, large print and audio tapes for the visual and hearing impaired
- Offering a sign-language interpreter or reader for customers or employees
ADA compliant products- Rehabilitation and Chiropractic
- Hi-Lo Treatment Tables – must lower to at least 19” from the floor
- Wheelchair accessible exercise equipment such as SciFit UBE’s and Recumbent Steppers (seat may be removed for wheelchair access)
Facilities should consult their professional tax advisor to verify eligibility