Many small businesses complain when confronted with
expense of complying with Americans with Disabilities Act. Most do not realize that there are a number of tax incentives available to offset costs. Importantly, one tax incentive comes in form of a tax credit, which is far more valuable than a tax deduction when it comes to creating tax savings.Disable Access Tax Credit
If you make your small business accessible to persons with disabilities, you can take an annual tax credit. Your business is eligible if you earned one million or less previous year or had 30 or fewer employees. If you meet this test, you can claim a tax credit of 50 percent of your expenditures to a maximum of $5,000. Since this is a tax credit, it is deducted from your total tax liability.
To claim this tax credit your expenditures must be paid or incurred to enable your business to comply with Americans with Disabilities Act. Expenditures might include:
1. Purchase of adaptive equipment or modification of equipment;
2. Production of print materials in alternate formats such as Braille or audio; and
3. Sign language interpreters for employees or customers.
Modifications to buildings or offices also qualify as long as two criteria are met. First, modifications cannot be construction of something new. Second, building must have been in service prior to November 5, 1990.
