ADA TubSafec

COMPLIANCE WITH AMERICAN WITH DISABILITIES ACT (ADA)

THE LAW PROVIDES TWO TAX INCENTIVES TO BUSINESSES THAT ABIDE BY THE ACT.

ONE

	SMALL BUSINESSES MAY CLAIM TAX CREDITS FOR THE EXPENSE OF BRINGING THEIR BUSINESSES INTO COMPLIANCE WITH THE REQUIREMENTS OF THE ADA.
	TO QUALIFY FOR THE CREDIT, A BUSINESS MUST HAVE GROSS RECEIPTS OF $1 MILLION OR LESS AND HAVE NO MORE THAN 30 FULL-TIME EMPLOYEES DURING THE TAX YEAR BEFORE IT ELECTS TO TAKE THE CREDIT.
	IF ONE OF THOSE CONDITIONS FIT, THE BUSINESS MAY TAKE A TAX CREDIT FOR 50 PERCENT OF ANY EXPENSE OF MORE THAN $250 BUT NOT MORE THAN $10,250. AND THE MAXIMUM CREDIT A BUSINESS CAN CLAIM IN ONE YEAR IS $5,000.
	THE IRS WILL ALLOW TAX CREDITS FOR ANY CHANGES WHICH ARE REQUIRED UNDER THE NEW LAW.

TWO

	ALL BUSINESSES CAN APPLY FOR A TAX DEDUCTION FOR THE MONEY THEY SPEND TO GET IN STEP WITH THE ADA REQUIREMENT.
	ANY BUSINESS THAT IS REQUIRED TO COMPLY WITH THE ADA MAY CLAIM A DEDUCTION FOR UP TO $15,000 OF EXPENSES FOR REQUIRED COMPLIANCE FOR THE DISABLED AS WELL AS ELDERLY WORKERS OR CUSTOMERS.
	WITHOUT THIS SPECIAL PROVISION, THESE COMPANIES WOULD BE REQUIRED TO DEPRECIATE THE COSTS AS YEARS WENT BY.
	SET UP AS AN ELECTION ON THE CORPORATE TAX RETURN, THE CATEGORIES FOR THE EXPENSE ALLOWED IS NARROWER THAN ARE THE CREDITS WHICH CAN BE CLAIMED BY SMALLER COMPANIES.

FOR TAX CREDIT INFORMATION, REFER TO IRS FOR 8826, DISABLED ACCESS CREDIT. ALWAYS CONSULT WITH YOUR TAX EXPERT TO SEE IF THESE ARE APPLICABLE TO YOUR BUSINESS.