The Americans with Disabilities Act (ADA) provides people with disabilities an equal opportunity to work and to participate in the mainstream of American life. The tax benefit is meant to help small businesses comply with the law and offset some of the costs of improving accessibility for customers or employees with disabilities.

The tax credit, established under Section 44 of the Internal Revenue Code, was created in 1990 specifically to help small businesses cover ADA-related eligible access expenditures. A business that for the previous tax year had either revenues of $1,000,000 or less or 30 or fewer full-time workers may take advantage of this credit. The credit can be used to cover a variety of expenditures, including:

• provision of readers for customers or employees with visual disabilities
• provision of sign language interpreters
• purchase of adaptive equipment
• production of accessible formats of printed materials (i.e., Braille, large print, audio tape, computer diskette)
• removal of architectural barriers in facilities or vehicles (alterations must comply with applicable accessibility standards)
• fees for consulting services (under certain circumstances)

The amount of the tax credit is equal to 50% of the eligible access expenditures in a year, up to a maximum expenditure of $10,250. There is no credit for the first $250 of expenditures. The maximum tax credit, therefore, is $5,000.

Thought Technology’s systems provide sound and visual feedbacks that help the hearing and/or visually impaired persons receive adequate treatment. Our products may be eligible for ADA tax credits.

Example: Company A purchases Thought Technology’s equipment to meet its reasonable accommodation obligation under ADA for $10,250. The amount by which $10,250 exceeds $250 is $10,000. Fifty percent of $10,000 is $5,000. The employer may take a tax credit in the amount of $5,000 on its next tax return.

For more information, talk to your accountant and visit this website:
http://www.ada.gov/taxpack.htm