Save 50% on your purchase

1. Download IRS Form 8826 Disabled Access Credit
2. Complete form
3. Submit with your federal tax filings

Small Business Tax Credit
Internal Revenue Code Section 44: Disabled Access Credit

The Americans with Disabilities Act includes several provisions aimed at making businesses more accessible to people with disabilities. Customers who purchase products featuring electric power elevation, are often eligible for this 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 grossed less than $1,000,000 in revenue or who employed fewer than 30 full-time workers is an “eligible small business” for the Disabled Access Credit.

The Disabled Access Credit is equal to 50% of the “eligible access expenditures” which exceeds $250 but does not exceed $10,250, for a maximum credit of $5,000 a year.

TAX CREDIT EXAMPLE:

A Hill Laboratories elevation table can be used for a tax credit because it allows easier access for patients with disabilities. Hill Laboratories has many elevation tables with numerous options, but for this example we will use a table that costs $5,000. We will subtract $250 because the “eligible access expenditure” must exceed $250. This leaves a balance of $4,750. Then 50% of $4750 is $2,375 (tax credit).

Purchase Price: $5,000
Expenditure: ($250)
Subtotal: :$4,750
50% Tax Credit: ($2,375)
Net Cost after ADA Credit: $2,625

SAVE MORE WITH 179 TAX DEDUCTION:

In addition to the ADA Tax Credit, you can deduct the balance in depreciation over the table’s tax code economic life or utilize the Section 179 deduction.

Purchase Price: $5,000
Net Cost after ADA credit: $2,625
179 Deduction @25%: ($656)
Net Cost Final: $1,969

Total Savings on $5,000 Purchase is $3,031