Before getting started on ensuring that your property is ADA compliant, it’s important to understand the various tax implications that are at play.
There are certain tax credits that can be taken advantage of you wouldn’t want to miss out because you’re simply unaware of the situation.
So, let’s say you have your property evaluation for exterior ADA requirements and you are told there is work that needs to be performed. Did you know those costs of improvement can be offset by a tax credit? In fact, any eligible small business may take an ADA tax credit of up to $5,000, each year, for accommodations made to comply with the requirements set forth by the ADA.
Are all projects eligible? What kind of restrictions are there?
Here are some of the details:
- The ADA Tax Credit is available for one-half the cost of “eligible access expenditures” that cost more than $250 but less than $10,250.
- A full tax deduction (up to $15,000 per year) is also available to any business for expenses of removing qualified architectural or transportation barriers.
- Expenses covered include costs of removing barriers created by steps, narrow doors, inaccessible parking spaces, restroom facilities, and transportation vehicles.
However, the devil is always in the details as they say.
You must be crystal clear on what is going to allow for and alternatively, preclude your ability to secure a tax credit. The best way to be confident in that clarity is to work with professionals who have navigated those waters in the past. Otherwise, there could be a small detail that gets overlooked and spirals into a costly mistake.
For example, what is an “eligible access expenditure?” Do you know what constitutes a qualified architectural or transportation barrier?
If the answer is no, we’re here to guide you through the entire process.
This concludes our three-part blog series on ADA compliance. It can be a complicated topic between the number of items that need to be reviewed, evaluated, and accounted for.
Failure to comply can be a costly mistake and certain tax credits can be taken advantage of.
The bottom line is that you want to be sure that everything is being addressed efficiently and correctly. The best way to ensure this is to partner with PaveTech Consulting, Inc. on your next project. You’ll be glad you did.