Small businesses may take an annual tax credit for making their businesses accessible to persons with disabilities. The credit amount is subtracted from the total tax liability after calculating taxes. The tax credit does not apply to the costs of new construction, and a building being modified must have been placed in service before November 5, 1990. Businesses can claim the Disabled Access Credit on IRS Form 8826. Businesses may take an annual deduction for expenses incurred to remove physical, structural, and transportation barriers for persons with disabilities at the workplace.
All businesses are eligible.
The deduction is available every year. It can be used for a variety of costs to make a facility or public transportation vehicle, owned or leased for use in the business, more accessible to and usable by persons with disabilities. The deduction may not be used for expenses incurred for new construction, or for a complete renovation of a facility or public transportation vehicle, or for the normal replacement of depreciable property. Small businesses may use the credit and deduction together, if the expenses incurred qualify under both Sections 44 and 190. Although both the tax credit and deduction may be used annually, if a business spends more than may be claimed in one year, it cannot carry over those expenses and claim a tax benefit in the next year.