ADA Guide for Places of Lodging: Serving Guests Who Are Blind or Who Have Low Vision

Tax Credits and Deductions

To assist businesses with complying with the ADA, Section 44 of the IRS Code allows a tax credit for small businesses and Section 190 of the IRS Code allows a tax deduction for all businesses. The tax credit is available to businesses that have total revenues of $1,000,000 or less in the previous tax year or 30 or fewer full-time employees. This credit can be up to $5,000 annually – reimbursement for 50% of your eligible access expenditures in a year, for expenditures between $250 and $10,250. The tax credit can be used to offset the cost of undertaking barrier removal and alterations to improve accessibility; providing accessible formats such as Braille, large print, and audio tape; making available a sign language interpreter or a reader for guests or employees, and for purchasing adaptive equipment. The tax deduction is available to all businesses with a maximum deduction of $15,000 per year. The tax deduction can be claimed for expenses incurred in barrier removal and alterations.