PSRT qualifies for ADA Section 44 Tax Credit
Here is an additional way that Doctors can save some money on their equipment purchases.
The PSRT is ADA compliant equipment. Small businesses are eligible to receive this tax credit on the purchase of a PSRT. Below is a direct excerpt from the article. If you would like the full information, please email blog@pettibonblog.com and we will gladly email the full PDF to you.
Section 44 – Disabled Access Credit
General
The Americans with Disabilities Act (ADA) mandates that businesses modify their facilities to include people with disabilities. As a result the Internal Revenue Code contains several sections that provide tax incentives to comply with the law. Section 44 of the Internal Revenue Code grants eligible small businesses an annual tax credit of up to $5,000 for expenditures incurred “to comply with applicable requirements under the Americans with Disabilities Act of 1990”.
Under Section 44, an eligible small business may elect to take a general business credit of up to $5,000 for eligible access expenditures to comply with the ADA. The amount that may be taken is 50% of the eligible access expenditures incurred that exceed $250 but do not exceed $10,250 per tax year. The credit can be carried forward up to 15 years and carried back for three years. However, there is no carry back to a year before 1991.
An eligible small business is defined as:
- Business with gross receipts (for the year preceding the taxable year) of no more than $1 million
- Thirty or fewer full-time (30 hours a week for 20 or more weeks a year) employees.
Or…
Examples of reasonable expenditures to comply with the ADA include (1) cost of removing architectural, communication, physical or transportation barriers; (2) providing qualified interpreters, readers or similar service; and (3) modifying or acquiring equipment and materials.
In the absence of clearly defined IRS regulations, Midmark believes that a disabled access credit may be available to qualified small business practices that purchase a power table to facilitate access by disabled individuals. However, the regulations are clear that if a power table is purchased to replace an existing power table, Section 44 will not apply.
« Jakarta Indonesia Clinics looking for Pettibon Doctors | Home | Want Answers? Ask here… »
Leave a Comment