Tax Incentives for ADA Compliance
By Michael Franz
Published September 14, 2020
Title III of the Americans with Disabilities Act (ADA) prohibits discrimination against people with disabilities in the activities of places of public accommodation. Places of public accommodation include many categories of businesses such as restaurants, grocery stores, and movie theaters, among others.
All businesses, regardless of their financial situation, are required to make the necessary modifications to make the facility accessible to those with disabilities. Fortunately for these businesses, there are two significant tax incentives that are available to help businesses comply with the accessibility requirements mandated by the ADA.
Tax credit
The first incentive is the Disabled Access Credit established by Section 44 of the Internal Revenue Code that is available to small businesses. To qualify as a small business, the business must have had less than $1 million in revenue for the previous tax year or have fewer than 30 full-time employees. The tax credit can be used to cover half of the accessibility related expenses incurred by the business [...]