Tax Incentives for Business

For more information on
the 	tax incentives and the
ADA, visit the
Awithss Con-
nection on ada.gov or call the
Department’s ADA Information
Line at 800-301-0514 (voice)
or 800-514-0383.
U.S. Department of Justice
Civil Rights Division
Disability Rights Section
Expanding
Your Market	Your Market	Your Market
Tax Incentives for Businesses
Businesses can take advantage of two Federal tax incentives available to help
cover costs of making access improvements for customers with disabilities:
• A tax credit for small businesses	A tax credit for small businesses	A 	who remove access barriers from
their facilities, provide accessible services, or take other steps to
improve accessibility for customers with disabilities
• A tax deduction for businesses of all sizes	A tax deduction for businesses of all sizes	A 	that remove access
barriers in their facilities or vehicles
A business that annually incurs eligible expenses to bring itself into
compliance with the ADA may use these tax incentives every	every year. The
incentives may be applied to a variety of expenditures; however, they may
not be applied to the costs of new construction. All barrier removal must
comply with applicable Federal accessibility standards.
Tax Credit
Small businesses with 30 or fewer employees or total revenues of $1 million
or less can use the Disabled Access Credit (Internal Revenue Code, Section
44). Eligible small businesses may take a credit of up to $5,000 (half of
eligible expenses up to $10,250, with no credit for the first $250) to offset
their costs for access, including barrier removal from their facilities
(e.g., widening a doorway, installing a ramp), provision of accessibility
services (e.g., sign language interpreters), provision of printed material in
alternate formats (e.g., large-print, audio, Braille), and provision or
modifi cation of equipment.
Tax Deduction
Businesses of all sizes may take advantage of this tax deduction. Under
Internal Revenue Code, Section 190, businesses can take a business expense
deduction of up to $15,000 per year for costs of removing barriers in facilities	per year for costs of removing barriers in facilities	per year for
or vehicles.
Tax Incentives in Combination
These two incentives can be used together by eligible businesses if the
expenditures qualify under both Sections 44 and 190. If a small business’
expenses exceed $10,250 for the maximum $5,000 tax credit, then the
deduction equals the difference between the total spent and the amount of the
credit claimed.
Tax Incentives Forms and Publications
Visit the Internal Revenue Service website at www.irs.gov
or call 800-829-3676 (voice); 800-829-4059 (TTY)
to order the necessary business forms and publications:	forms and publications:	f
Form 8826 (Disabled Access Credit)
and Publication 535 “Business Expenses” (tax deduction).
More than fi fty
million Americans
with disabilities make
up a huge, nearly
untapped market for
businesses of all types
and sizes. To help
businesses
welcome customers
with disabilities, the
IRS offers two tax
incentives to remove
access barriers.
For more information about
these tax incentives and the
ADA, call the Department
of Justice ADA Information
Line at:
800-514-0301 (voice)
800-514-0383 (TTY)
or visit the
ADA Business
Connection at:
www.ada.gov. November 2005

The Americans with Disabilities Act authorizes the Department of Justice (the Department) to
provide technical assistance to individuals and entities that have rights or responsibilities under the
Act. This document provides informal guidance to assist you in understanding the ADA and the
Department's regulations.
This guidance document is not intended to be a final agency action, has no legally binding effect,
and may be rescinded or modified in the Department’s complete discretion, in accordance with
applicable laws. The Department’s guidance documents, including this guidance, do not establish
legally enforceable responsibilities beyond what is required by the terms of the applicable statutes,
regulations, or binding judicial precedent.