Disabled Access Tax Credit

As a bankruptcy lawyer I know that the costs of operating a business can sometimes prove too much to keep a taxpayer in the black, and that government regulations can often add to the expenses. Businesses large and small for example spend significant amounts in complying with the Americans With Disabilities Act to provide handicap individuals access to their premises, and while this may be a noble goal, it can add to the burden of entrepreneurs in their struggle to survive. money.

Fortunately Congress has created a special tax credit for eligible small businesses that spend money for this purpose. The credit is fifty percent of the amount the business incurs in complying with the Americans With Disabilities Act. Eligible expenditures are amounts spent for this purpose of between $250.00 and $10,250.00 a year Thus the maximum Disabled Access Tax Credit in any one year is $5,000.00.

To be a qualifying small business for this purpose the taxpayer must have annual gross receipts of less than $1,000,000.00 or have 30 or less full time employees. An employee who works at least 30 hours a week is considered full time.