Internal Revenue Code:Sec. 44. Expenditures to provide access to disabled individuals

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter A - Determination of Tax Liability
         PART IV - CREDITS AGAINST TAX
          Subpart D - Business Related Credits
        

Statute

    Sec. 44. Expenditures to provide access to disabled individuals
 
    (a) General rule
      For purposes of section 38, in the case of an eligible small
    business, the amount of the disabled access credit determined under
    this section for any taxable year shall be an amount equal to 50
    percent of so much of the eligible access expenditures for the
    taxable year as exceed $250 but do not exceed $10,250.
    (b) Eligible small business
      For purposes of this section, the term ''eligible small
    business'' means any person if -
        (1) either -
          (A) the gross receipts of such person for the preceding
        taxable year did not exceed $1,000,000, or
          (B) in the case of a person to which subparagraph (A) does
        not apply, such person employed not more than 30 full-time
        employees during the preceding taxable year, and
        (2) such person elects the application of this section for the
      taxable year.
    For purposes of paragraph (1)(B), an employee shall be considered
    full-time if such employee is employed at least 30 hours per week
    for 20 or more calendar weeks in the taxable year.
    (c) Eligible access expenditures
      For purposes of this section -
      (1) In general
        The term ''eligible access expenditures'' means amounts paid or
      incurred by an eligible small business for the purpose of
      enabling such eligible small business to comply with applicable
      requirements under the Americans With Disabilities Act of 1990
      (as in effect on the date of the enactment of this section).
      (2) Certain expenditures included
        The term ''eligible access expenditures'' includes amounts paid
      or incurred -
          (A) for the purpose of removing architectural, communication,
        physical, or transportation barriers which prevent a business
        from being accessible to, or usable by, individuals with
        disabilities,
          (B) to provide qualified interpreters or other effective
        methods of making aurally delivered materials available to
        individuals with hearing impairments,
          (C) to provide qualified readers, taped texts, and other
        effective methods of making visually delivered materials
        available to individuals with visual impairments,
          (D) to acquire or modify equipment or devices for individuals
        with disabilities, or
          (E) to provide other similar services, modifications,
        materials, or equipment.
      (3) Expenditures must be reasonable
        Amounts paid or incurred for the purposes described in
      paragraph (2) shall include only expenditures which are
      reasonable and shall not include expenditures which are
      unnecessary to accomplish such purposes.
      (4) Expenses in connection with new construction are not eligible
        The term ''eligible access expenditures'' shall not include
      amounts described in paragraph (2)(A) which are paid or incurred
      in connection with any facility first placed in service after the
      date of the enactment of this section.
      (5) Expenditures must meet standards
        The term ''eligible access expenditures'' shall not include any
      amount unless the taxpayer establishes, to the satisfaction of
      the Secretary, that the resulting removal of any barrier (or the
      provision of any services, modifications, materials, or
      equipment) meets the standards promulgated by the Secretary with
      the concurrence of the Architectural and Transportation Barriers
      Compliance Board and set forth in regulations prescribed by the
      Secretary.
    (d) Definition of disability; special rules
      For purposes of this section -
      (1) Disability
        The term ''disability'' has the same meaning as when used in
      the Americans With Disabilities Act of 1990 (as in effect on the
      date of the enactment of this section).
      (2) Controlled groups
        (A) In general
          All members of the same controlled group of corporations
        (within the meaning of section 52(a)) and all persons under
        common control (within the meaning of section 52(b)) shall be
        treated as 1 person for purposes of this section.
        (B) Dollar limitation
          The Secretary shall apportion the dollar limitation under
        subsection (a) among the members of any group described in
        subparagraph (A) in such manner as the Secretary shall by
        regulations prescribe.
      (3) Partnerships and S corporations
        In the case of a partnership, the limitation under subsection
      (a) shall apply with respect to the partnership and each
      partner.  A similar rule shall apply in the case of an S
      corporation and its shareholders.
      (4) Short years
        The Secretary shall prescribe such adjustments as may be
      appropriate for purposes of paragraph (1) of subsection (b) if
      the preceding taxable year is a taxable year of less than 12
      months.
      (5) Gross receipts
        Gross receipts for any taxable year shall be reduced by returns
      and allowances made during such year.
      (6) Treatment of predecessors
        The reference to any person in paragraph (1) of subsection (b)
      shall be treated as including a reference to any predecessor.
      (7) Denial of double benefit
        In the case of the amount of the credit determined under this
      section -
          (A) no deduction or credit shall be allowed for such amount
        under any other provision of this chapter, and
          (B) no increase in the adjusted basis of any property shall
        result from such amount.
    (e) Regulations
      The Secretary shall prescribe regulations necessary to carry out
    the purposes of this section.
 

Sources

    (Added Pub. L. 101-508, title XI, Sec. 11611(a), Nov. 5, 1990, 104
    Stat. 1388-501.)
 

References in Text

                             REFERENCES IN TEXT
      The Americans With Disabilities Act of 1990, referred to in
    subsecs. (c)(1) and (d)(1) is Pub. L. 101-336, July 26, 1990, 104
    Stat. 327, as amended, which is classified principally to chapter
    126 (Sec. 12101 et seq.) of Title 42, The Public Health and
    Welfare. For complete classification of this Act to the Code, see
    Short Title note set out under section 12101 of Title 42 and
    Tables.
      The date of the enactment of this section, referred to in
    subsecs. (c)(1), (4) and (d)(1), is the date of enactment of Pub.
    L. 101-508, which was approved Nov. 5, 1990.
 

Miscellaneous

                              PRIOR PROVISIONS
      A prior section 44, added Pub. L. 94-12, title II, Sec. 208(a),
    Mar. 29, 1975, 89 Stat. 32; amended Pub. L. 94-45, title IV, Sec.
    401(a), June 30, 1975, 89 Stat. 243; Pub. L. 94-455, title XIX,
    Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to
    purchase of new principal residence, prior to repeal by Pub. L.
    98-369, div.  A, title IV, Sec. 474(m)(1), July 18, 1984, 98 Stat.
    833, applicable to taxable years beginning after Dec. 31, 1983, and
    to carrybacks from such years.
      Another prior section 44 was renumbered section 35 of this title.
                               EFFECTIVE DATE
      Section applicable to expenditures paid or incurred after Nov. 5,
    1990, see section 11611(e)(1) of Pub. L. 101-508, set out as an
    Effective Date of 1990 Amendment note under section 38 of this
    title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 38, 39 of this title.