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). To have an elevator consultant perform a system evaluation and ADA survey click here.

Installation of audible and visual hall call and car station and car station readers for people with visual disabilities.
Purchase and installation of elevators, porch lifts and stair lift equipment. Important: new construction costs cannot be used for this tax credit. It can be used only for alterations to existing buildings to comply with the ADA.

Purchase and installation of Emergency Elevator Telephones,
Braille tags for elevator hall call stations, elevator door jambs, and elevator car stations. Removal of architectural barriers in facilities. (Accessibility modifications must comply with applicable standards)                               

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.

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What is the Tax Deduction Incentive?

The Internal Revenue Service under Section 190 established a tax deduction specifically designed to help any size business cover eligible ADA access expenditures. The tax deduction incentive can be used to cover the same tax credit elevator accessibility expenditures as the listed above.

Tax Deduction Limitations

The maximum expenditure for this tax deduction is limited to $15,000.

How to maximize your $20,000 elevator tax incentive benefit.

If you qualify as a small businesses you can use both a tax credit and tax deduction maximize your tax benefit. Expenditures incurred must qualify under both Section 44 and Section 190.

If a small business spends $20,000 in necessary vertical transportation building access improvements they may take a maximum tax credit of $5000 and a tax deduction of $15,000. The deduction is equivalent to the difference between the entire expenditures and the sum of the credit claimed.  An example of tax credit and tax deduction is below:

$20,000 cost of access improvements (Installation of new vertical transportation equipment in existing buildings or ADA elevator upgrade on existing equipment.) $5,000 maximum tax credit $15,000 remaining for tax deduction

How to apply annual Incentives

The tax credit and tax deduction can be used annually. Expenditures exceeding credit or deduction limits from previous years cannot be carried over from one year to the next. Conversely, if the tax credit amount you are permitted surpasses the amount of taxes you are required to pay, you may carry the balance of the remaining sum of the tax credit to the following year.

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How to get a ADA compliance survey performed on your elevator equipment.

ADA is the law and meeting these code requirements is essential to avoid possible discrimination lawsuits. ElevatorSource can help you comply with the ADA Code by getting you in contact with an elevator company or elevator consultant in your area that will provide you with a elevator ADA upgrade evaluation.

To find a an elevator companies or culsultant we recommend you visit our elevator companies or elevator consultants web page these companies understand the ADA code and can help you with your accessibility improvements.

For further information on tax incentive or to request IRS publications, contact:

IRS Contacts:

IRS Publications and Forms (800) 829-3676 Voice (800) 829-4059 TDD

IRS Questions (800) 829-1040 Voice (800) 829-4059 TDD

Legal Questions (202) 622-3110

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