Tax Incentives Related to ADA Signage
We are now in the midst of tax season, and businesses and individuals alike are working to figure out the various deductions they can take to minimize their tax liability.
There are several tax incentives in place to encourage business owners to comply with the Americans with Disabilities Act (ADA). These ADA tax incentives are available on both a federal and state level. Many business owners do not realize that these incentives exist, so they end up paying more in taxes than they probably need to.
Here are a couple quick examples of these ADA tax incentives:
- Architectural/transportation tax deduction: All businesses are eligible for this deduction. If you have removed physical or structural barriers or anything preventing reasonable transportation, you could qualify. Common examples include widening doors, building wheelchair-accessible ramps for people with disabilities and modifying company vehicles to accommodate people who use wheelchairs or have disabilities. The maximum deduction under this category is $15,000.
- Small business* tax credit: This tax credit is meant only for small businesses, and it covers most of the expenses needed to comply with the ADA, including removing barriers, providing auxiliary services and aids and accommodating employees with disabilities. Some examples of specific items that would qualify a business for this tax credit include installing ADA signage, adding elevators, hiring sign language interpreters and creating Braille documents. The deduction is 50 percent of expenses between $250 and $10,250, with a maximum deduction of $5,000.
- State tax credits: Some states offer additional ADA-related tax credits for small and large businesses. For more information, be sure to contact your state tax office; they will provide you with a full list of these deductions.
*A small business, for these purposes, is one classified as having 30 or fewer employees OR doing $1 million or less in gross receipts from the prior year.
Any physical modifications must comply with all the ADA’s accessibility standards to be eligible for a tax credit.
With this in mind, ADA signage can help businesses save money on their taxes. For more information about ordering ADA signage, contact our team today at Erie Custom Signs.