Disabled Access Credit

Definition

The Disabled Access Credit is a tax credit designed to help small businesses cover the costs associated with making their facilities accessible to individuals with disabilities. This credit is aimed at encouraging businesses to enhance accessibility, thereby fostering inclusivity in the workforce. Eligible expenses can include modifications to buildings, equipment purchases, and the removal of barriers that impede access.

5 Must Know Facts For Your Next Test

1. The Disabled Access Credit allows eligible small businesses to claim a tax credit of up to $5,000 for expenses incurred in making their facilities accessible.
2. To qualify for the credit, businesses must have gross receipts of $1 million or less or have no more than 30 full-time employees.
3. Eligible expenses for the credit can include improvements like installing ramps, modifying restrooms, or purchasing adaptive equipment.
4. This credit can be claimed in addition to the Section 179 deduction for capital expenditures related to accessibility improvements.
5. Businesses can claim the Disabled Access Credit for expenses incurred in the year the changes are made, enhancing immediate financial relief.

Review Questions

• What types of expenses are considered eligible for the Disabled Access Credit, and how does this credit support small businesses?
  • Eligible expenses for the Disabled Access Credit include costs related to modifying facilities, such as installing ramps, widening doorways, or purchasing specialized equipment. This credit supports small businesses by providing a financial incentive to enhance accessibility, which not only benefits employees with disabilities but also expands their customer base. By making these necessary modifications more affordable, small businesses can create a more inclusive environment while improving their overall operations.
• Discuss how the eligibility requirements for the Disabled Access Credit reflect the goals of promoting accessibility in small businesses.
  • The eligibility requirements for the Disabled Access Credit are designed to specifically assist small businesses, which often face greater financial constraints than larger enterprises. By limiting eligibility to businesses with gross receipts of $1 million or less or fewer than 30 employees, the program targets those who may find it particularly challenging to afford necessary accessibility modifications. This focus helps promote inclusivity and ensures that smaller organizations can participate in fostering an accessible environment for individuals with disabilities.
• Evaluate the potential impact of the Disabled Access Credit on a small business's decision to invest in accessibility improvements and its broader implications for society.
  • The Disabled Access Credit can significantly influence a small business's decision to invest in accessibility improvements by reducing financial barriers associated with such changes. With this tax incentive, businesses may be more inclined to create inclusive spaces that cater to individuals with disabilities, ultimately leading to a diverse workforce and customer base. The broader societal implications include increased employment opportunities for people with disabilities and enhanced community engagement, reflecting a collective commitment to equality and inclusion in various sectors.

Related terms

Small Business: A business that is privately owned and operated, typically with a limited number of employees and revenue.

Section 44: The section of the Internal Revenue Code that outlines the Disabled Access Credit and its eligibility criteria.

Barrier Removal: The process of identifying and eliminating physical obstacles that restrict access for individuals with disabilities.