Allows a deduction for
"qualified architectural and transportation barrier
removal expenses." Only expenditures that are for the
purpose of making any facility or public transportation
vehicle owned or leased by the tax payer for use in
connection with his or her trade or business more
accessible to, and usable by, handicapped and elderly
individuals are eligible for the deduction. The taxpayer
must establish, to the satisfaction of the Secretary of
the Treasury, that the resulting removal of the barrier
meets the standards promulgated by the Secretary with the
concurrence of the U.S. Architectural and Transportation
Barriers Compliance Board.
For purposes of this section, a
"handicapped individual" is any individual who has a
physical or mental disability (including, but not limited
tot deafness and blindness) which, for that individual,
constitutes or results in a functional limitation to
employment, or who has any physical or mental impairment
that substantially limits one or more major life
activities of that individual.
The deduction may not exceed
$15,000 for any taxable year. (The maximum deduction had
been $35,000 prior to passage of Public Law 101-508 in
1990, which lowered the maximum deduction.)
This tax credit is available
to "eligible small businesses" in the amount of 50
percent of "eligible access expenditures" for the taxable
year that exceed $250 but do not exceed $10,250.
"Eligible small businesses" are
those businesses with either:
a) $1 million or less in gross
receipts for the preceding tax year
OR
b) 30 or fewer full-time employees
during the preceding tax year.
"Eligible access expenditures"
means amounts paid or incurred by an eligible small
business for the purpose of enabling the small business
to comply with applicable requirements under ADA. Certain
types of expenditures are listed as included under the
meaning of the term "eligible access expenditures." These
include amounts paid or incurred:
i) for the purpose of removing
architectural, communication, physical, or transportation
barriers that prevent a business from being accessible
to, or usable by, individuals with
disabilities;
ii) to provide qualified readers,
taped texts, and other effective methods of making
visually delivered materials available to people with
visual impairments;
iii) to provide qualified
interpreters or other effective methods of making aurally
delivered materials available to individuals with hearing
impairments;
iv) to acquire or modify equipment,
or devices for individuals with disabilities,
or
v) to provide other similar
services, modifications, materials, or
equipment.
Expenditures that are not necessary
to accomplish the above mentioned purposes are not
eligible. Expenses in connection with new construction
are not eligible. "Disability" has the same meaning as it
does in the ADA. Barrier removals or the provision of
services, modifications, materials, or equipment must
meet standards promulgated by the Secretary in order to
be eligible.
Example: Company A purchases
equipment to meet its reasonable accommodation obligation
under ADA for $8,000. The amount by which $8,000 exceeds
$250 is $7,750. Fifty percent of $7,750 is $3,875. The
employer may take a tax credit in the amount of $3,875 on
its next tax return.
Example: Company B removes a
physical barrier in accordance with its reasonable
accommodation obligation under ADA. The barrier removal
meets standards promulgated by the Secretary.
The company expends $12,000 on this
barrier removal. The amount by which $12,000 exceeds $250
but not $10,250 is a full $10,000. Fifty percent of
$10,000 is $5,000. Company B is eligible for a $5,000 tax
credit on its next tax return.
