The Disabled Access Credit and the Architectural Barrier Removal Deduction provide federal tax incentives for businesses that make accessibility improvements. Texas businesses investing in ADA compliance, accessible facilities, and accommodations for employees or customers with disabilities may reduce costs through these tax provisions.
Two Federal Tax Incentives for Accessibility
The IRS provides two distinct incentives for accessibility investments. The Disabled Access Credit (Section 44) provides a tax credit for small businesses, while the Architectural Barrier Removal Deduction (Section 190) provides a deduction available to businesses of all sizes. These incentives may be used together on the same project.
Disabled Access Credit (Section 44)
- Credit amount: 50% of eligible expenses between $250 and $10,250 (maximum $5,000)
- Eligibility: Businesses with $1 million or less in gross receipts, or 30 or fewer employees
- Annual: May be claimed each year eligible expenses are incurred
Barrier Removal Deduction (Section 190)
- Deduction amount: Up to $15,000 per year
- Eligibility: Businesses of any size
- Qualifying expenses: Removal of architectural, transportation, and communication barriers
Common Qualifying Projects for Texas Businesses
Texas businesses commonly use these incentives for ramp and doorway modifications, accessible restroom renovations, parking lot accessibility improvements, signage and wayfinding upgrades, accessible point-of-sale stations, and assistive technology purchases.
Combining with VRS and WOTC
Texas businesses that hire workers with disabilities through VRS may stack the Disabled Access Credit with WOTC tax credits and VRS on-the-job training funds, creating a comprehensive package of support for inclusive hiring and accessible workplaces.
How to Claim These Benefits
File IRS Form 8826 for the Disabled Access Credit and claim the Section 190 deduction on your regular tax return. Maintain documentation of all accessibility expenditures. Consult a tax professional to optimize the combination of credits and deductions for your specific situation.
Find More Programs for Your Business
The Disabled Access Credit for Texas Businesses is just one of many programs that Texas businesses may be eligible for. Federal, state, and local governments offer a range of grants, tax credits, loans, and incentives.
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