§44 — Title 26 Internal Revenue Code | U.S. Code

Summary

Eligible small businesses can get a tax credit equal to 50% of the eligible access costs that are more than $250 and up to $10,250 in a tax year. An "eligible small business" is a person whose prior-year gross receipts were $1,000,000 or less, or who had no more than 30 full-time employees, and who chooses to use the credit. "Eligible access expenditures" are costs to meet the Americans with Disabilities Act of 1990 (as it was when this rule was passed), such as removing barriers that block access, hiring interpreters or other ways to make sound material available, providing readers or recorded texts for visually impaired people, buying or changing equipment for disabled individuals, or similar services or items. Costs must be reasonable and needed. Work to remove architectural barriers does not count if it is for a facility first put in service after this law was enacted. The taxpayer must show the changes meet standards the Secretary sets with the Architectural and Transportation Barriers Compliance Board. Businesses under common control count as one person and the Secretary will split the dollar limit among them. Special rules apply to partnerships, S corporations, short tax years, gross receipts (reduced by returns and allowances), and predecessors. The credit cannot also be deducted or increase property basis. The Secretary will make rules to carry out the credit.

Title 26, §44

Internal Revenue Code — Source: USLM XML via OLRC

(a)For purposes of section 38, in the case of an eligible small business, the amount of the disabled access credit determined under this section for any taxable year shall be an amount equal to 50 percent of so much of the eligible access expenditures for the taxable year as exceed $250 but do not exceed $10,250.

(b)For purposes of this section, the term “eligible small business” means any person if—

(1)either—

(A)the gross receipts of such person for the preceding taxable year did not exceed $1,000,000, or

(B)in the case of a person to which subparagraph (A) does not apply, such person employed not more than 30 full-time employees during the preceding taxable year, and

(2)such person elects the application of this section for the taxable year.

(c)For purposes of this section—

(1)The term “eligible access expenditures” means amounts paid or incurred by an eligible small business for the purpose of enabling such eligible small business to comply with applicable requirements under the Americans With Disabilities Act of 1990 (as in effect on the date of the enactment of this section).

(2)The term “eligible access expenditures” includes amounts paid or incurred—

(A)for the purpose of removing architectural, communication, physical, or transportation barriers which prevent a business from being accessible to, or usable by, individuals with disabilities,

(B)to provide qualified interpreters or other effective methods of making aurally delivered materials available to individuals with hearing impairments,

(C)to provide qualified readers, taped texts, and other effective methods of making visually delivered materials available to individuals with visual impairments,

(D)to acquire or modify equipment or devices for individuals with disabilities, or

(E)to provide other similar services, modifications, materials, or equipment.

(3)Amounts paid or incurred for the purposes described in paragraph (2) shall include only expenditures which are reasonable and shall not include expenditures which are unnecessary to accomplish such purposes.

(4)The term “eligible access expenditures” shall not include amounts described in paragraph (2)(A) which are paid or incurred in connection with any facility first placed in service after the date of the enactment of this section.

(5)The term “eligible access expenditures” shall not include any amount unless the taxpayer establishes, to the satisfaction of the Secretary, that the resulting removal of any barrier (or the provision of any services, modifications, materials, or equipment) meets the standards promulgated by the Secretary with the concurrence of the Architectural and Transportation Barriers Compliance Board and set forth in regulations prescribed by the Secretary.

(d)For purposes of this section—

(1)The term “disability” has the same meaning as when used in the Americans With Disabilities Act of 1990 (as in effect on the date of the enactment of this section).

(2)(A)All members of the same controlled group of corporations (within the meaning of section 52(a)) and all persons under common control (within the meaning of section 52(b)) shall be treated as 1 person for purposes of this section.

(B)The Secretary shall apportion the dollar limitation under subsection (a) among the members of any group described in subparagraph (A) in such manner as the Secretary shall by regulations prescribe.

(3)In the case of a partnership, the limitation under subsection (a) shall apply with respect to the partnership and each partner. A similar rule shall apply in the case of an S corporation and its shareholders.

(4)The Secretary shall prescribe such adjustments as may be appropriate for purposes of paragraph (1) of subsection (b) if the preceding taxable year is a taxable year of less than 12 months.

(5)Gross receipts for any taxable year shall be reduced by returns and allowances made during such year.

(6)The reference to any person in paragraph (1) of subsection (b) shall be treated as including a reference to any predecessor.

(7)In the case of the amount of the credit determined under this section—

(A)no deduction or credit shall be allowed for such amount under any other provision of this chapter, and

(B)no increase in the adjusted basis of any property shall result from such amount.

(e)The Secretary shall prescribe regulations necessary to carry out the purposes of this section.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Americans With Disabilities Act of 1990, referred to in subsecs. (c)(1) and (d)(1), is Pub. L. 101–336, July 26, 1990, 104 Stat. 327, which is classified principally to chapter 126 (§ 12101 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see

Short Title

note set out under section 12101 of Title 42 and Tables. The date of the enactment of this section, referred to in subsecs. (c)(1), (4) and (d)(1), is the date of enactment of Pub. L. 101–508, which was approved Nov. 5, 1990.

Prior Provisions

A prior section 44, added Pub. L. 94–12, title II, § 208(a), Mar. 29, 1975, 89 Stat. 32; amended Pub. L. 94–45, title IV, § 401(a),

June 30, 1975, 89 Stat. 243; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to purchase of new principal residence, prior to repeal by Pub. L. 98–369, div. A, title IV, § 474(m)(1),

July 18, 1984, 98 Stat. 833, applicable to taxable years beginning after Dec. 31, 1983, and to carrybacks from such years. Another prior section 44 was renumbered section 37 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to expenditures paid or incurred after Nov. 5, 1990, see section 11611(e)(1) of Pub. L. 101–508, set out as an

Effective Date

of 1990 Amendment note under section 38 of this title.

§44 Expenditures to Provide Access to Disabled Individuals

Summary

Title 26, §44

Notes & Related Subsidiaries

Editorial Notes

References in Text

Short Title

Prior Provisions

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

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