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Tax Incentives

Tax Deductions

Tax Deduction for Barrier Removal

The tax deduction, established under Section 190 of the Internal Revenue Code, is now a maximum of $15,000 per year. A business (including active ownership of an apartment building) of any size may use this deduction for the removal of architectural or transportation barriers. The renovations under Section 190 must comply with applicable accessibility standards. Small businesses can use these incentives in combination if the expenditures incurred qualify under both Section 44 and Section 190. For example, a small business that spends $20,000 for access adaptations may take a tax credit of $5000 (based on $10,250 of expenditures), and a deduction of $15,000. The deduction is equal to the difference between the total expenditures and the amount of the credit claimed.

Example: A small business’ use of both tax credit and tax deduction $20,000 cost of access improvements (restroom, ramp, 3 doors widened)

  • $5,000 maximum credit.
  • $15,000 remaining for deduction.
  • Employer makes hiring decisions.
  • No restrictions on the number of qualified new individuals he/she can hire.
  • Claim up to $8,500/new hire in potential tax credits.
  • Credits are applied to taxes due to IRS – unused credits may be carried over to next tax year.