Americans with Disabilities Act Tax Credit

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 disabilities
    • 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 standards)
    • Fees for consulting services (under certain circumstances)

Note that the credit cannot be used for the costs of new construction. It can be used only for adaptations to existing facilities that are required to comply with the ADA.

The 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.

Talk with you tax advisor if you have additional questions regarding the credit or visit the ADA Home page for additional information.  Click here to download the tax forms.