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DisabilityAccessCreditArchitecturalBarrierRemovalCredit1. Disabled Access Credit What is the purpose of this resource? The Disabled Access Credit provides a non-refundable credit for small businesses that incur expenditures for the purpose of providing access to persons with disabilities. These expenditures are amounts paid or incurred by the eligible small business in order to comply with applicable requirements under the Americans with Disabilities Act of 1990 (Public Law 101-336) as in effect on November 5, 1990. A disability of an individual is defined as a physical or mental impairment that substantially limits one or more major life activities, a record of such an impairment, or being regarded as having such an impairment. What benefits or services are offered to businesses by this resource? Businesses can receive a non-refundable credit up to $5,000 annually. This credit is part of the general business credit. A business may take the credit each and every year they incur access expenditures. Eligible access expenditures include amounts paid or incurred: 1.To remove barriers that prevent a business from being accessible to or usable by individuals with disabilities; 2.To provide qualified interpreters or other methods of making audio materials available to hearing-impaired individuals; 3.To provide qualified readers, taped texts, and other methods of making visual materials available to individuals with visual impairments; or 4.To acquire or modify equipment or devices for individuals with disabilities. The expenditures must be reasonable and necessary to accomplish the above purposes. Eligible expenditures do not include expenditures under number one listed above that are paid or incurred in connection with any facility first placed in service after November 5, 1990. Eligible access expenditures must meet those standards issued by the Secretary of the Treasury as agreed to by the Architectural and Transportation Barriers Compliance Board and set forth in regulations. What businesses are eligible for these benefits and services? Small businesses can benefit from the disabled access credit. An eligible small business is one that earned $1 million or less or had no more than 30 full time employees in the previous year. An employee is considered full time if they are employed at least 30 hours per week for 20 or more calendar weeks in the tax year. What is the process for a business to apply or register? Eligible small businesses should complete and file Form 8826 at irs.gov/pub/irs-pdf/f8826.pdf to claim the disabled access credit for the tax year. Businesses should refer to Publication 535 and Form 8826, Disabled Access Credit (PDF), for more information. 2. The Architectural Barrier Removal Tax Deduction What is the purpose of this resource? The Architectural Barrier Removal Tax Deduction encourages businesses of any size to remove architectural and transportation barriers to the mobility of persons with disabilities and the elderly. What benefits or services are offered to businesses by this resource? Businesses may claim a deduction of up to $15,000 a year for qualified expenses that normally must be capitalized. Also, businesses can add any costs over this limit to the basis of the property and depreciate these excess costs. The deduction can be used for a variety of costs to make a facility or public transportation vehicle, owned or leased for use in the business, more accessible to and usable by persons with disabilities. The barrier removal must meet the guidelines and requirements issued by the Architectural and Transportation Barriers Compliance Board under the Americans with Disabilities Act (ADA) of 1990. Examples include: Providing accessible parking spaces, ramps, and curb cuts; Providing phones, water fountains, and restrooms that are accessible to persons in wheelchairs; Posting signage and symbols of accessibility; or Widening walkways to at least 48 inches wide. The deduction may not be used for expenses incurred for new construction, a complete renovation of a facility, public transportation vehicle, or for the normal replacement of depreciable property. What businesses are eligible for these benefits and services? Businesses that employ and/or serve individuals with disabilities or the elderly can take advantage of the Architectural Barrier Removal Tax Deduction. What is the process for a business to apply or register? A business should claim the deduction by listing it as a separate expense on their income tax return for the tax year that the expenses were paid or incurred. The business must maintain adequate records to support their deduction. A business must file their return by its due date, including extensions. However, if a business timely filed their return for the year without claiming the deduction, they can still do so by filing an amended return within six (6) months of the due date of the return (excluding extensions). A business should clearly indicate the deduction on their amended return and write “Filed pursuant to section 301.91002.” Then they should file the amended return at the same address they filed the original return. Claiming the deduction is irrevocable after the due date, including extensions, of the return.