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Tuesday, February 21, 2006

common senate on tax credits that help make iowa’s businesses accessible to all

By Senator Tom Harkin

The day the Americans with Disabilities Act (ADA) was signed into law was one of the proudest days in my entire legislative career. This landmark civil rights statute aims to give individuals with disabilities’ equal access, equal opportunity and full participation in our society. As the ADA’s lead sponsor, I have been amazed by the improvements this law has brought about over the past fifteen years.

The ADA requires most businesses to accommodate both employees and customers with disabilities. Many businesses have discovered that being more accessible to individuals with disabilities can bring impressive financial benefits. Bear in mind that in the United States, some 50 million consumers with disabilities control more than $175 billion in discretionary income. Naturally, these consumers are more likely to support businesses where they feel welcome.

Of course, there are some expenses involved in making a business more accessible. However, the following two tax credits can help you offset some of the costs.

Section 190 of the Internal Revenue Code allows businesses to annually deduct up to $15,000 in expenses related to the removal of architectural or transportation barriers, provided that their renovations comply with the ADA’s accessibility standards.

Section 44 of the Internal Revenue Code allows small businesses to also receive a tax credit for costs related to removing physical barriers or making materials more user-friendly.

Businesses can do a variety of things to qualify for this credit, including providing materials in Braille or large print type, presenting information on an audio tape, providing a sign language interpreter or a reader, or purchasing special adaptive equipment. Businesses can deduct 50% of the costs associated with any of these things, earning a maximum credit of $5,000. Best of all, businesses that qualify under Section 44 and Section 190 can use both tax credits every year.

Making businesses more accessible to individuals with disabilities not only makes good business sense, but it also helps to make our society more equitable. Every time a business makes its entrance wheelchair accessible or provides materials in large print type or Braille, we take one step closer toward the ADA’s great goal of an America where all people have equal access and opportunity.

You can obtain additional information about these tax incentives from your local IRS office or by contacting the Great Plains ADA/IT center at 1-800-949-4232 or http://www.adaproject.org/.