How to get Uncle Sam to pay for your ADA elevator upgrade.
Tax Incentives for Improving Accessibility
The federal government is now providing two types of tax incentives to assist business owners with the cost of making the necessary vertical transportation building access
improvements. Building owners have the option of applying for both a tax incentive and a tax deduction.
What is the Tax Credit Incentive?
The Internal Revenue Service under Section 44 created a tax incentive specifically designed to help small businesses cover eligible ADA access expenditures. This credit can be used to
purchase vertical transportation equipment by deducting costs from your tax liability after you determine your taxes. To take full advantage of this credit your business must have less
than $1,000,000 in last year's revenues or less than 30 full time employees. This credit can be used to cover a variety of elevator expenditures including: Fees for elevator consulting
services (under certain circumstances). Installation of audible and visual hall call and car station and car station readers for people with visual disabilities.
The purchase and installation of new elevators, porch lifts and stair lift equipment cannot be used for this tax credit. It can be used only for alterations to existing buildings to comply with
Tax Credit Limitations
The amount of the tax credit is equal to half of the qualified access expenditures in a year. The maximum expenditure for one year is $10,250 minus the first $250 of expenditures. The
maximum tax credit available is limited to $5,000 per year.