The Americans with Disabilities Act Tax Credit for Small Businesses

The Americans with Disabilities Act (ADA) provides a tax credit for expenditures by small businesses that are used to increase access for people with disabilities. One of the eligible categories is for expenditures used "to acquire or modify equipment or devices for individuals with disabilities" (Quoted from IRS Form 8826). Although you should always double check with your tax advisor or accountant, the GameCycle, which provides exercise access to people in wheelchairs, qualifies for this tax credit.

The amount of the credit is 50% of the amount of eligible expenditures for a year that do not exceed $10,250. So, the maximum tax credit allowable $5,125.

Keep in mind that this is a tax credit and not just a deduction. A tax credit is subtracted directly from the taxes you owe. In practice, this means that if your small business is eligible for the tax credit, then the real cost to you of purchasing a GameCycle would be half-price, or you could purchase 2 for just over the price of 1.

For this ADA tax credit, an eligible small business is defined as one that either:

  1. Had gross receipts for the preceding tax year that did not exceed one million dollars.
    • OR
  2. Had no more than 30 full time employees during the preceding tax year.

If you fit one of these two categories, we encourage you to exlpore this option further.

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