How to Qualify your Small Business for the IRS Disabled Access Credit

Small businesses can take a tax credit for making their business more accessible to people with disabilities according to the IRS Code, Section 44 called the Disabled Access Credit. The credit can apply to expenditures made for both employees and customers alike. To qualify, the business must have a gross revenue of less than $1 million dollars or had 30 or fewer full-time employees. The credit is for 50% of expenditures. The minimum expenditure must be $250 and the maximum is $10,250. The maximum benefit therefore is $5125. The amount of the credit is subtracted from total tax liability. This credit is renewable on a yearly basis.�

Examples of expenses covered are:�

1. Sign language interpreters for employees or customers who are hearing impaired.
2. Readers for employees or customers who have visual impairments.
3. Equipment that serves to adapt or modify conditions that aid those with impairment such as a special door or elevator. Even the removal of certain types of lighting that affect those with visual impairments could be considered.
4. Print materials for those with special needs (braille, audio tape, large print) such as special menus in a restaurant.
5. Barriers removed which make the business more accessible to individuals with disabilities such as a ramp instead of, or besides stairs or sidewalks when there had previously been lawn.�

Typically, any expenses which cause a business to comply with the requirements of the Americans with Disabilities Act are covered with the exception of some ground rules. The expense cannot occur in the construction of a new building - only modifications to existing buildings constructed previous to November 5, 1990 qualify.�

For more information go to:�

Office of Associate Counsel, IRS
Passthrough & Special Industries
1111 Constitutional Avenue, NW
Washington DC 20224
(202) 622-3110