Does Your Business Qualify for the Disabled Access Credit

By October 6, 2020Tax Credits
disabled access tax credit accessible building

It’s important to be as thorough as you can while preparing your business for taxes since there could be credits available for your business that you haven’t considered before. A good example of this is the “Disabled Access Credit.” Here’s some information about how your businesses may be able to qualify for this credit.

What Is the Disabled Access Tax Credit?

This credit helps businesses that go out of their way to accommodate those with disabilities. There are a few credits that fall in this category, with the Disabled Tax Credit being the first.

This is a non-refundable credit available for small businesses. It comes into effect when a business has expenditures from providing easier access to employees who have disabilities. In order to eligible, your business must have earned $1 million or less during the year.

Alternatively, it could have no more than 30 full-time employees during the year past. You can take the credit for every single year that you have expenses for offering access. The applicable form is Form 8826.

Other similar credits include the Barrier Removal Tax Deduction that applies to businesses that remove transportation and architectural barriers that get in the way of the elderly or the disabled. Another is the Work Opportunity Tax Credit, which provides credits and incentives to hire disabled employees. All these credits are mentioned on the same page.

Details and Examples

The minimum amount for Disabled Access Credit is $250, with the maximum amount being $10,000. The credit can count for extra access options you add for both employees and customers who need extra help due to having visual disabilities.

It could apply if you add sign language interpreters to help the deaf. Perhaps the expense you have applies to your decision to buy special adaptive equipment to help improve access. It could work under the circumstances where you added braille, extra audio take, computer materials or even just spent extra on large print for those who had trouble seeing.

It could also count towards fees for consulting services as well, in the right circumstance.

So, a specific example would be if you added access bars in restrooms, created a ramp for wheelchairs, and widened some doors for easier wheelchair access.

It’s worth noting that there are other tax credits related to disability access that you may be eligible for as well if you run a home construction business specifically. In general, it’s important to check for every potential credit you can.

Getting Started

The specific provisions for getting this Disability Tax Credit, as well as many other credits available for businesses can be in constant flux, especially in times such as these.

This is exactly why it’s important to make sure that you get help in understanding and preparing your taxes in the exact right way to receive the credit. This particular credit has limits for each improvement you make, for example, making it so that maximizing the credit will work easier if you make many improvements rather than just one or two large ones.

Making different improvements across different types of access can be advantageous here since it will both make the best use of the credit, and be the most helpful to the widest range of people.

It’s also important to consult with experts in case there are particular nuances of the credit to keep in mind in terms of how it applies to your specific business.

For more information about getting this credit and possibly many others depending on your situation, please make sure you don’t hesitate to go ahead and contact us at Incentax LLC today.