Tax Credits for ADA improvements

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$5,000 Tax Credit

Did you know that the federal government offers a tax credit of up to $5,000 per year for access improvements?

Under section 44 of the Internal Revenue Code, small businesses can receive a tax credit equal to 50% of the cost to improve access up to $10,250 per year (There is no credit for the 1st $250 of expenditures). Meaning if you spent $10,250 to improve accessible parking for instance, you can collect a $5,000 credit at the end of the year. If you only spent $2,250, you would be eligible for a $1,000 credit.

$15,000 Tax Deduction

Under section 190 of the Internal Revenue Code, businesses of any size can receive a tax deduction up to $15,000 per year to improve access

Tax Incentives in Combination

Small businesses can take advantage of the tax credit and tax deduction in combination.

EXAMPLE: A small business’ use of both tax credit and tax deduction

$20,000 Cost of access improvements (Restroom Fixture Replacement, Ramp Construction)

– $5,000 Maximum credit

$15,000 Remaining for deduction

When creating a barrier removal plan, we recommend consulting with your CPA about how to maximize the tax incentives offered for ADA compliance. If access improvements will incur a high cost at your facility, you may want to consider making incremental improvements over time so that you can benefit from the tax incentives over a number of years.

Click here for more information or call Certified Access Services at 619-736-8585.

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Cory Cabral

Cory Cabral is our co-founder and Senior Certified Access Specialist. He graduated from San Diego State University with bachelors degree in Business Administration. After college he began his career in the sign industry where be became an expert in the field of ADA signage. During that time, he found that many of his clients were being put out of business because of ADA lawsuits. In most cases, the business owners simply did not know that their businesses had barriers to accessibility. He soon began searching for resources to help his clients avoid accessibility lawsuits and discovered the California Certified Access Specialist program. After immersing himself in all aspects of accessibility in the built environment by studying at the CalCasp Academy and the DSA, he became a California Certified Access Specialist. He is now CASp-630 and helps businesses limit exposure to ADA lawsuits by providing them with the resources necessary to make their products and services accessible to all.