Title I Technical Assistance Manual

2.Tax Deduction for Architectural and Transportation Barrier Removal (Section 190 of the Internal Revenue Code)

Any business may take a full tax deduction, up to $15,000 per year, for expenses of removing specified architectural or transportation barriers. Expenses covered include costs of removing barriers created by steps, narrow doors, inaccessible parking spaces, toilet facilities, and transportation vehicles. Both the tax credit and the tax deduction are available to eligible small businesses.

For example: If a small business makes a qualified expenditure of $24,000, it may take the $5000 tax credit for the initial $10,250 and, if the remaining $13,750 qualifies under Section 190, may deduct that amount from its taxable income. However, a business may not receive a double benefit for the same expense: for example, it may not take both the tax credit and the tax deduction for $10,000 spent to renovate bathrooms.

Information on the Section 44 tax credit and the Section 190 tax deduction can be obtained from a local IRS office, or by contacting the Office of Chief Counsel, Internal Revenue Service. (See Resource Directory.)