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Important Tax Information For Reps, Practitioners and Students; Even Perpetual Students.
About ADA Compliance & Your 50% Tax Credit
In 1990, the Americans With Disabilities Act was instituted.
It includes a provision for a 50% tax credit on applicable sums
when eligible businesses acquire equipment to accommodate individuals
with disabilities.
Both our electric lift massage tables can be eligible, as well
as our low-range portable massage tables, since they meet the height
requirements necessary for wheelchair transfer.
Check with your accountant for details and requirements.
Read the ADA or See highlights below.
Download tax form 8826: Disabled Access Credit
-CITE-
26 USC Sec. 44 01/02/2006
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart D - Business Related Credits
-HEAD-
Sec. 44. Expenditures to provide access to disabled individuals
-STATUTE-
(a) General rule
For purposes of section 38, in the case of an eligible small
business, the amount of the disabled access credit determined under
this section for any taxable year shall be an amount equal to 50
percent of so much of the eligible access expenditures for the
taxable year as exceed $250 but do not exceed $10,250.
(b) Eligible small business
For purposes of this section, the term "eligible small business"
means any person if -
(1) either -
(A) the gross receipts of such person for the preceding
taxable year did not exceed $1,000,000, or
(B) in the case of a person to which subparagraph (A) does
not apply, such person employed not more than 30 full-time
employees during the preceding taxable year, and
(2) such person elects the application of this section for the
taxable year.
For purposes of paragraph (1)(B), an employee shall be considered
full-time if such employee is employed at least 30 hours per week
for 20 or more calendar weeks in the taxable year.
(c) Eligible access expenditures
For purposes of this section -
(1) In general
The term "eligible access expenditures" means amounts paid or
incurred by an eligible small business for the purpose of
enabling such eligible small business to comply with applicable
requirements under the Americans With Disabilities Act of 1990
(as in effect on the date of the enactment of this section).
(2) Certain expenditures included
The term "eligible access expenditures" includes amounts paid
or incurred -
(A) for the purpose of removing architectural, communication,
physical, or transportation barriers which prevent a business
from being accessible to, or usable by, individuals with
disabilities,
(B) to provide qualified interpreters or other effective
methods of making aurally delivered materials available to
individuals with hearing impairments,
(C) to provide qualified readers, taped texts, and other
effective methods of making visually delivered materials
available to individuals with visual impairments,
(D) to acquire or modify equipment or devices for individuals
with disabilities, or
(E) to provide other similar services, modifications,
materials, or equipment.
(3) Expenditures must be reasonable
Amounts paid or incurred for the purposes described in
paragraph (2) shall include only expenditures which are
reasonable and shall not include expenditures which are
unnecessary to accomplish such purposes.
(4) Expenses in connection with new construction are not eligible
The term "eligible access expenditures" shall not include
amounts described in paragraph (2)(A) which are paid or incurred
in connection with any facility first placed in service after the
date of the enactment of this section.
(5) Expenditures must meet standards
The term "eligible access expenditures" shall not include any
amount unless the taxpayer establishes, to the satisfaction of
the Secretary, that the resulting removal of any barrier (or the
provision of any services, modifications, materials, or
equipment) meets the standards promulgated by the Secretary with
the concurrence of the Architectural and Transportation Barriers
Compliance Board and set forth in regulations prescribed by the
Secretary.
(d) Definition of disability; special rules
For purposes of this section -
(1) Disability
The term "disability" has the same meaning as when used in the
Americans With Disabilities Act of 1990 (as in effect on the date
of the enactment of this section).
(2) Controlled groups
(A) In general
All members of the same controlled group of corporations
(within the meaning of section 52(a)) and all persons under
common control (within the meaning of section 52(b)) shall be
treated as 1 person for purposes of this section.
(B) Dollar limitation
The Secretary shall apportion the dollar limitation under
subsection (a) among the members of any group described in
subparagraph (A) in such manner as the Secretary shall by
regulations prescribe.
(3) Partnerships and S corporations
In the case of a partnership, the limitation under subsection
(a) shall apply with respect to the partnership and each partner.
A similar rule shall apply in the case of an S corporation and
its shareholders.
(4) Short years
The Secretary shall prescribe such adjustments as may be
appropriate for purposes of paragraph (1) of subsection (b) if
the preceding taxable year is a taxable year of less than 12
months.
(5) Gross receipts
Gross receipts for any taxable year shall be reduced by returns
and allowances made during such year.
(6) Treatment of predecessors
The reference to any person in paragraph (1) of subsection (b)
shall be treated as including a reference to any predecessor.
(7) Denial of double benefit
In the case of the amount of the credit determined under this
section -
(A) no deduction or credit shall be allowed for such amount
under any other provision of this chapter, and
(B) no increase in the adjusted basis of any property shall
result from such amount.
(e) Regulations
The Secretary shall prescribe regulations necessary to carry out
the purposes of this section.
-SOURCE-
(Added Pub. L. 101-508, title XI, Sec. 11611(a), Nov. 5, 1990, 104
Stat. 1388-501.)
-REFTEXT-
REFERENCES IN TEXT
The Americans With Disabilities Act of 1990, referred to in
subsecs. (c)(1) and (d)(1) is Pub. L. 101-336, July 26, 1990, 104
Stat. 327, as amended, which is classified principally to chapter
126 (Sec. 12101 et seq.) of Title 42, The Public Health and
Welfare. For complete classification of this Act to the Code, see
Short Title note set out under section 12101 of Title 42 and
Tables.
The date of the enactment of this section, referred to in
subsecs. (c)(1), (4) and (d)(1), is the date of enactment of Pub.
L. 101-508, which was approved Nov. 5, 1990.
-MISC1-
PRIOR PROVISIONS
A prior section 44, added Pub. L. 94-12, title II, Sec. 208(a),
Mar. 29, 1975, 89 Stat. 32; amended Pub. L. 94-45, title IV, Sec.
401(a), June 30, 1975, 89 Stat. 243; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to
purchase of new principal residence, prior to repeal by Pub. L. 98-
369, div. A, title IV, Sec. 474(m)(1), July 18, 1984, 98 Stat.
833, applicable to taxable years beginning after Dec. 31, 1983, and
to carrybacks from such years.
Another prior section 44 was renumbered section 36 of this title.
EFFECTIVE DATE
Section applicable to expenditures paid or incurred after Nov. 5,
1990, see section 11611(e)(1) of Pub. L. 101-508, set out as an
Effective Date of 1990 Amendment note under section 38 of this
title.
Click here for the complete code:
Please check with your accountant to make sure you are eligible
for this tax credit.
In 1990, the Americans With Disabilities Act was instituted. It includes a provision for a 50% tax credit on applicable sums when eligible businesses acquire equipment to accommodate individuals with disabilities.
Both our electric lift massage tables can be eligible, as well as our low-range portable massage tables, since they meet the height requirements necessary for wheelchair transfer.
Check with your accountant for details and requirements.
Read the ADA or See highlights below.
Download tax form 8826: Disabled Access Credit
-CITE-
26 USC Sec. 44 01/02/2006-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart D - Business Related Credits-HEAD-
Sec. 44. Expenditures to provide access to disabled individuals-STATUTE-
(a) General rule
For purposes of section 38, in the case of an eligible small
business, the amount of the disabled access credit determined under
this section for any taxable year shall be an amount equal to 50
percent of so much of the eligible access expenditures for the
taxable year as exceed $250 but do not exceed $10,250.
(b) Eligible small business
For purposes of this section, the term "eligible small business"
means any person if -
(1) either -
(A) the gross receipts of such person for the preceding
taxable year did not exceed $1,000,000, or
(B) in the case of a person to which subparagraph (A) does
not apply, such person employed not more than 30 full-time
employees during the preceding taxable year, and(2) such person elects the application of this section for the
taxable year.For purposes of paragraph (1)(B), an employee shall be considered
full-time if such employee is employed at least 30 hours per week
for 20 or more calendar weeks in the taxable year.
(c) Eligible access expenditures
For purposes of this section -
(1) In general
The term "eligible access expenditures" means amounts paid or
incurred by an eligible small business for the purpose of
enabling such eligible small business to comply with applicable
requirements under the Americans With Disabilities Act of 1990
(as in effect on the date of the enactment of this section).
(2) Certain expenditures included
The term "eligible access expenditures" includes amounts paid
or incurred -
(A) for the purpose of removing architectural, communication,
physical, or transportation barriers which prevent a business
from being accessible to, or usable by, individuals with
disabilities,
(B) to provide qualified interpreters or other effective
methods of making aurally delivered materials available to
individuals with hearing impairments,
(C) to provide qualified readers, taped texts, and other
effective methods of making visually delivered materials
available to individuals with visual impairments,
(D) to acquire or modify equipment or devices for individuals
with disabilities, or
(E) to provide other similar services, modifications,
materials, or equipment.
(3) Expenditures must be reasonable
Amounts paid or incurred for the purposes described in
paragraph (2) shall include only expenditures which are
reasonable and shall not include expenditures which are
unnecessary to accomplish such purposes.
(4) Expenses in connection with new construction are not eligible
The term "eligible access expenditures" shall not include
amounts described in paragraph (2)(A) which are paid or incurred
in connection with any facility first placed in service after the
date of the enactment of this section.
(5) Expenditures must meet standards
The term "eligible access expenditures" shall not include any
amount unless the taxpayer establishes, to the satisfaction of
the Secretary, that the resulting removal of any barrier (or the
provision of any services, modifications, materials, or
equipment) meets the standards promulgated by the Secretary with
the concurrence of the Architectural and Transportation Barriers
Compliance Board and set forth in regulations prescribed by the
Secretary.
(d) Definition of disability; special rules
For purposes of this section -
(1) Disability
The term "disability" has the same meaning as when used in the
Americans With Disabilities Act of 1990 (as in effect on the date
of the enactment of this section).
(2) Controlled groups
(A) In general
All members of the same controlled group of corporations
(within the meaning of section 52(a)) and all persons under
common control (within the meaning of section 52(b)) shall be
treated as 1 person for purposes of this section.
(B) Dollar limitation
The Secretary shall apportion the dollar limitation under
subsection (a) among the members of any group described in
subparagraph (A) in such manner as the Secretary shall by
regulations prescribe.
(3) Partnerships and S corporations
In the case of a partnership, the limitation under subsection
(a) shall apply with respect to the partnership and each partner.
A similar rule shall apply in the case of an S corporation and
its shareholders.
(4) Short years
The Secretary shall prescribe such adjustments as may be
appropriate for purposes of paragraph (1) of subsection (b) if
the preceding taxable year is a taxable year of less than 12
months.
(5) Gross receipts
Gross receipts for any taxable year shall be reduced by returns
and allowances made during such year.
(6) Treatment of predecessors
The reference to any person in paragraph (1) of subsection (b)
shall be treated as including a reference to any predecessor.
(7) Denial of double benefit
In the case of the amount of the credit determined under this
section -
(A) no deduction or credit shall be allowed for such amount
under any other provision of this chapter, and
(B) no increase in the adjusted basis of any property shall
result from such amount.
(e) Regulations
The Secretary shall prescribe regulations necessary to carry out
the purposes of this section.-SOURCE-
(Added Pub. L. 101-508, title XI, Sec. 11611(a), Nov. 5, 1990, 104
Stat. 1388-501.)-REFTEXT-
REFERENCES IN TEXT
The Americans With Disabilities Act of 1990, referred to in
subsecs. (c)(1) and (d)(1) is Pub. L. 101-336, July 26, 1990, 104
Stat. 327, as amended, which is classified principally to chapter
126 (Sec. 12101 et seq.) of Title 42, The Public Health and
Welfare. For complete classification of this Act to the Code, see
Short Title note set out under section 12101 of Title 42 and
Tables.
The date of the enactment of this section, referred to in
subsecs. (c)(1), (4) and (d)(1), is the date of enactment of Pub.
L. 101-508, which was approved Nov. 5, 1990.-MISC1-
PRIOR PROVISIONS
A prior section 44, added Pub. L. 94-12, title II, Sec. 208(a),
Mar. 29, 1975, 89 Stat. 32; amended Pub. L. 94-45, title IV, Sec.
401(a), June 30, 1975, 89 Stat. 243; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to
purchase of new principal residence, prior to repeal by Pub. L. 98-
369, div. A, title IV, Sec. 474(m)(1), July 18, 1984, 98 Stat.
833, applicable to taxable years beginning after Dec. 31, 1983, and
to carrybacks from such years.
Another prior section 44 was renumbered section 36 of this title.EFFECTIVE DATE
Section applicable to expenditures paid or incurred after Nov. 5,
1990, see section 11611(e)(1) of Pub. L. 101-508, set out as an
Effective Date of 1990 Amendment note under section 38 of this
title.
Click here for the complete code:
Please check with your accountant to make sure you are eligible for this tax credit.
