Federal Architectural &
Transportation
Barrier Removal
(Access Related Tax Incentive)
Follow the link to
your question????
What is it?
Who is
eligible?
What is the amount?
What expenses are
covered?
What expenses are not covered?
May I use the
tax credit and tax deduction together?
Are there limits
on annual usage?
How can this credit be deducted?
Where can I obtain additional information?
What is
it? Businesses may take an annual deduction for
expenses incurred to remove physical, structural, and
transportation barriers for persons with disabilities at
the workplace.
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Who is eligible? All businesses
are eligible.
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What is the amount? Businesses
may take a tax deduction of up to $15,000 a year for
expenses incurred to remove barriers for persons with
disabilities. Amounts in excess of the $15,000 maximum
annual deduction may be depreciated.
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What expenses are covered? The
deduction is available every year. It 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.
Examples include the cost of:
-
providing accessible
parking spaces, ramps, and curb cuts;
-
providing
telephones, water fountains, and restrooms which are
accessible to persons using wheelchairs;
-
making walkways at least 48
inches wide.
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What expenses are not covered? The deduction may not be used for expenses incurred for new
construction, or for a complete renovation of a facility or
public transportation vehicle, or for the normal replacement
of depreciable property.
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May I use the tax credit and tax
deduction together? Small businesses may use the credit
and deduction together, if the expenses incurred qualify
under both Sections 44 and 190. For example, if a business
spent $12,000 for access adaptations, it would qualify for a
$5,000 tax credit and a $7,000 tax deduction.
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Are there limits on annual usage?
Although both the tax credit and deduction may be used
annually, if a business spends more than may be claimed in
one year, it cannot carry over those expenses and claim a
tax benefit in the next year.
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How can this credit be deducted? The amount spent is
subtracted from the total income of a business to establish
its taxable income. In order for expenses to be deductible,
accessibility standards established under the Section 190
regulations must be met.
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Where can I obtain additional information?
Office
of Chief Counsel, IRS
1111Constitution Avenue, NW
Washington, DC 20224
(202) 622-3110
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