The tax deduction, established under Section 190 of the Internal Revenue Code, is now a maximum of $15,000 per year—a reduction from the $35,000 that was available through December 31, 1990. A business (including active ownership of an apartment building) of any size may use this deduction for the removal of architectural or transportation barriers. The renovations under Section 190 must comply withn applicable accessibility standards. Small businesses can use these incentives in combination if the expenditures incurred qualify under both Section 44 and Section 190. For example, a small business that spends $20,000 for access adaptations may take a tax credit of $5000 (based on $10,250 of expenditures), and a deduction of $15,000. The deduction is equal to the difference between the total expenditures and the amount of the credit claimed.
EXAMPLE: A small business’ use of both tax credit
and tax deduction
$20,000 cost of access improvements
(rest room, ramp, 3 doors
widened)
– $5,000 maximum credit
$15,000 remaining for deduction