2012 Equipment Purchases may be eligible for Tax Credit
With tax season in full swing and the April 15th deadline looming, those that have yet to file could cash in on an unexpected credit. Internal Revenue Code 44 provides a tax credit that can be used by eligible small businesses that purchased equipment or modified store access in such a way as to encourage ADA Compliance. Remember that tax credits are different than deductions in that they actually reduce the amount of tax you owe!!!!
What equipment is covered?
The code is fairly vague but any machine that has front controls and is mounted reasonably should qualify. Eligible businesses should consult a tax professional for the details.
What is the amount of the credit?
The amount of the credit is 50% of the eligible expense over $250 to a max of $10,500.00. Therefore the yearly credit would be up to $5,000.00.
How do I claim the credit?
Those businesses that qualify should review IRS Code section 190 and then file Form 8826 to claim the credit. Specific questions about ADA compliancy and filing requirements should be directed to a tax professional.