Topic 06 · 5 min read
Accessibility and Small-Property Credits
Smaller credits that most owners never ask about.
Not every credit runs to six figures. Small business owners who make a property accessible to people with disabilities can claim a credit for part of the cost, and a separate rehabilitation credit applies to certain older non-historic buildings. These are modest, but they attach to work many owners are doing anyway.
What to know
- The disabled access credit
- Eligible small businesses can claim half of qualifying accessibility spending above a small floor, up to an annual cap.
- Size limits apply
- The credit is aimed at small operations, tested by gross receipts or employee count, not at institutional owners.
- Removing barriers is also deductible
- A separate deduction covers barrier-removal costs, and the two can be coordinated on the same project.
- Compliance work counts
- Ramps, door widths, signage, restroom modifications, and accessible parking are ordinary qualifying items.
The tax benefit
Work that improves the property and reduces legal exposure gets partly funded by the tax code.
Worked example
A neighborhood storefront
A landlord spends $10,250 on a ramp and accessible restroom. Roughly half the spending above the $250 floor comes back as a credit of about $5,000, capped at the annual limit.
Watch out for
- The credit is for compliance-related access work, not general renovation.
- Costs used for the credit cannot be double-counted in the deduction.
- Large owners generally will not qualify on size grounds.
Terms from this topic
Disabled access creditBarrier removalEligible small businessAnnual cap
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