Tax Credits & Deductions for Businesses
Businesses stand to benefit by investing in accessibility. Not only are you creating an accessible environment for people with disabilities; you’re also gaining eligibility for helpful tax credits to recoup partial (or even full) costs. The Federal Government and many individual states offer tax incentives to businesses and business owners investing in modifications.
Here are some tips on getting the returns you are entitled to
- Small Business Access – AKA the Disabled Access Tax Credit, is available to eligible small businesses in the amount of 50 percent of eligible access expenditures that exceed $250 but do not exceed $10,250 for a taxable year. Available each year you make eligible access expenditures.
- Removing Architectural & Transportation Barriers – the IRS allows a deduction up to $15,000/year for qualified architectural and transportation barrier removal expenses. Modifications must meet the requirements set by IRS regulations, section 190.
- Targeted Jobs – Employers are eligible to receive a tax credit up to 40 percent of the first $6,000 of first-year wages of a new employee with a disability who is referred by state or local vocational rehabilitation agency, a State Commission of the Blind, or the US Department of Veterans Affairs, and certified by a State Employment Service. Workers must be employed for at least 90 days or have at least 120 hours of work for the employer to qualify.
- Visit http://www.eeoc.gov/facts/fs-disab.html for more info.
Consult a local tax professional for any further questions.
The National Mobility Equipment Dealers Association (NMEDA) is an advocate for mobility and accessibility for drivers with disabilities. If you need help with converting or buying a handicap accessible car, truck or van, please consider one of our mobility equipment dealers.