I own a small business that needs some physical modifications for people who are wheelchair users or have other mobility impairments. Does the federal government have any tax incentives to help me with the costs of making these modifications?
Yes. The Disabled Access Credit, IRS form 8826, provides a credit for small businesses that incur expenditures for providing access to persons with disabilities. An eligible small business is one that earned $1 million or less or had no more than 30 full-time employees in the previous year. In addition, the Barrier Removal Tax Deduction encourages businesses of any size to remove architectural and transportation barriers to the mobility of persons with disabilities and the elderly. Businesses may claim a deduction of up to $15,000 a year for qualified expenses for items that normally must be capitalized. Businesses claim the deduction by listing it as a separate expense on their income tax return.
In addition, eligible small businesses may use the Disabled Access Credit and the architectural/transportation tax deduction together in the same tax year, if the expenses meet the requirements of both sections. When using both, the deduction is equal to the difference between the total expenditures and the amount of the credit claimed, up to $15,000 per year.