Financial Calculation

U.S. Government Tax Credits For Your Advantage

Section 44 — (ADA) Disabled Access Credit
Disabled access credit is for eligible small businesses that elect to apply a credit against their income tax for 50% of the amount of the eligible expenditure for the tax year that is over $250 and not more than $10,250. Thus, the maximum amount of the credit is $5,000.

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. Tables that elevate and High Low (HyLo) tables typically qualify for this credit. Always check with your accountant concerning the application of this credit.

Section 179 — Special Depreciation Rule
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualified equipment, you can deduct the full purchase price from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves. Under Section 179, you can write off up to $500,000 of qualified equipment during tax session.

  Section 44 Disabled Access Credit Section 179 Expense Election
Purchase Price $12,500 $12,500
IRS "Floor" -$250 Arrow
Eligible Cost $12,250
Maximum Credit $10,000
Smaller of Purchase Price or Maximum Credit $10,000
Disabled Access Credit Percentage 50%
Disabled Access Credit $5,000
Remaining Tax Basis $7,500
Section 179 Expense Election Saves (assumes 35% Tax Rate) $2,625 $4,375
Net, After Tax Cost of New Equipment Purchase price less Disabled Access Credit and Section 179 Depreciation Savings $4,875 $8,125

* Please refer to your tax advisor for current up-to-date details on tax advantages including the example listed above. ScripHessco cannot advise anyone how to utilize or interpret the tax codes. However, we can make you aware of the new codes.
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