Americans with Disabilities Act (ADA) provides
people with disabilities an equal opportunity to work and
to participate in the mainstream of American life. The tax
benefit is meant to help small businesses comply with the
law and offset some of the costs of improving accessibility
for customers or employees with disabilities.
The tax credit, established under Section 44 of the Internal
Revenue Code, was created in 1990 specifically to help small
businesses cover ADA-related eligible access expenditures.
A business that for the previous tax year had either revenues
of $1,000,000 or less or 30 or fewer full-time workers may
take advantage of this credit. The credit can be used to
cover a variety of expenditures, including:
provision of readers for customers or employees with visual
provision of sign language interpreters
purchase of adaptive equipment
production of accessible formats of printed materials
(i.e., Braille, large print, audio tape, computer diskette)
removal of architectural barriers in facilities or vehicles
(alterations must comply with applicable accessibility
fees for consulting services (under certain circumstances)
amount of the tax credit is equal to 50% of the eligible
access expenditures in a year, up to a maximum expenditure
of $10,250. There is no credit for the first $250 of expenditures.
The maximum tax credit, therefore, is $5,000.
Thought Technology’s systems provide sound and visual
feedbacks that help the hearing and/or visually impaired
persons receive adequate treatment. Our products may be
eligible for ADA tax credits.
Example: Company A purchases Thought Technology’s
equipment to meet its reasonable accommodation obligation
under ADA for $10,250. The amount by which $10,250 exceeds
$250 is $10,000. Fifty percent of $10,000 is $5,000. The
employer may take a tax credit in the amount of $5,000 on
its next tax return.
more information, talk to your accountant and visit this