ADA Tax Credit

GlideTrak Qualifies for an ADA Tax Credit of up to 50% of Cost

The Americans with Disabilities Act Tax Credit for Small Businesses

The Americans with Disabilities Act (ADA) provides a tax credit for expenditures by small businesses that are used “to acquire or modify equipment or devices for individuals with disabilities” (Quoted from IRS Form 8826).

The amount of the credit is 50% of the amount of eligible expenditures for a year that are a minimum of $250. but do not exceed $10,250. So, the maximum tax credit allowable may be (50% of expenditure – $250) .

Keep in mind that this is a tax credit and not just a deduction. A tax credit is subtracted directly from the taxes you owe. In practice, this means that if your small business is eligible for the tax credit, the ADA will pay for half of the total cost.

For this ADA tax credit, an eligible small business is defined as one that either:

1) Had gross receipts for the preceding tax year that did not exceed one million dollars.
or
2) Had no more than 30 full time employees during the preceding tax year.

If you fit only one of these two categories, we encourage you to fill out IRS Form 8826. and add the deduction to the tax year your GlideTrak was purchased.

GlideTrak is a most important tool for People with Disabilities. It can allow access to a stand up, gait training and therapeutic exercise that cannot be accessed without GlideTrak. It can be a real game changer for your patients and for your clinic.

Remember to consult your tax advisor or accountant. Tax laws can change from year to year and a tax professional would have the most current information on your business. You may also refer to Instructions (Page 2) of Tax Form 8826 or to Code Section 44 of the Federal Tax Guide for more detailed information or visit www.irs.gov or contact the IRS Helpline at: 800.829.4933