What is the Disabled Access Credit?
The Disabled Access Credit is a federal tax credit designed to encourage small businesses to make their facilities more accessible to individuals with disabilities. This credit is particularly beneficial for businesses that incur expenses related to the removal of architectural and transportation barriers, allowing for better access to services and facilities.
Eligibility
To qualify for the Disabled Access Credit, a business must meet certain criteria. Primarily, it should have no more than 30 full-time employees and have gross receipts that do not exceed $1 million for the previous tax year. These limits ensure that the credit specifically supports small businesses, making the financial burden of compliance with accessibility regulations more manageable.
Credit Amount
The credit can cover up to 50% of qualifying expenditures, with a maximum credit of $10,250 per year. This means the maximum allowable expenses for which the credit can be claimed is $20,500. Eligible expenses may include modifications such as installing ramps, widening doorways, or improving signage.
How to Claim
Businesses can claim the Disabled Access Credit by filing IRS Form 8826, which details the qualified expenses incurred during the taxable year. It's essential to keep thorough records of all expenses related to accessibility improvements to substantiate the claim.
Conclusion
The Disabled Access Credit serves as a valuable resource for small businesses looking to enhance accessibility for individuals with disabilities while also providing potential tax savings. By taking advantage of this credit, businesses can foster inclusivity and improve their customer base.