I.R.C. § 44(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.
I.R.C. § 44(b) Eligible Small Business —
For purposes of this section, the term “eligible small business” means any person
if—
I.R.C. § 44(b)(1) —
either—
I.R.C. § 44(b)(1)(A) —
the gross receipts of such person for the preceding taxable year did not exceed
$1,000,000, or
I.R.C. § 44(b)(1)(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
I.R.C. § 44(b)(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.
I.R.C. § 44(c) Eligible Access Expenditures —
For purposes of this section—
I.R.C. § 44(c)(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).
I.R.C. § 44(c)(2) Certain Expenditures Included —
The term “eligible access expenditures”
includes amounts paid or incurred—
I.R.C. § 44(c)(2)(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,
I.R.C. § 44(c)(2)(B) —
to provide qualified interpreters or other effective methods of making aurally delivered
materials available to individuals with hearing impairments,
I.R.C. § 44(c)(2)(C) —
to provide qualified readers, taped texts, and other effective methods of making
visually delivered materials available to individuals with visual impairments,
I.R.C. § 44(c)(2)(D) —
to acquire or modify equipment or devices for individuals with disabilities, or
I.R.C. § 44(c)(2)(E) —
to provide other similar services, modifications, materials, or equipment.
I.R.C. § 44(c)(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.
I.R.C. § 44(c)(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.
I.R.C. § 44(c)(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.
I.R.C. § 44(d) Definition Of Disability; Special Rules —
For purposes of this section—
I.R.C. § 44(d)(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).
I.R.C. § 44(d)(2) Controlled Groups
I.R.C. § 44(d)(2)(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.
I.R.C. § 44(d)(2)(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.
I.R.C. § 44(d)(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.
I.R.C. § 44(d)(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.
I.R.C. § 44(d)(5) Gross Receipts —
Gross receipts for any taxable year shall be reduced by returns and allowances made
during such year.
I.R.C. § 44(d)(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.
I.R.C. § 44(d)(7) Denial Of Double Benefit —
In the case of the amount of the credit determined under this section—
I.R.C. § 44(d)(7)(A) —
no deduction or credit shall be allowed for such amount under any other provision
of this chapter, and
I.R.C. § 44(d)(7)(B) —
no increase in the adjusted basis of any property shall result from such amount.
I.R.C. § 44(e) Regulations —
The Secretary shall prescribe regulations necessary to carry out the purposes of
this section.
(Added by Pub. L. 101-508, title XI, Sec. 11611(a), Nov. 5, 1990, 104 Stat. 1388-501.)
BACKGROUND NOTES
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.
PRIOR PROVISIONS
A prior section 44, added Pub. L. 94-12, title II, Sec. 208(a), Mar. 29, 1975, 89 Stat. 32, and 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, which related to purchase
of new principal residence, was repealed 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.
[44B. Repealed. Pub. L. 98-369, div. A, title IV, 474(m)(1), July 18, 1984, 98 Stat. 833]
Section 44B, added by Pub. L. 95-30, title II, 202(a), May 23, 1977, 91 Stat. 141, and amended Pub. L. 95-600, title III, 321(b)(1), Nov. 6, 1978, 92 Stat. 2834; Pub. L. 96-222, title I, 103(a)(6)(G)(i),
(ii), Apr. 1, 1980, 94 Stat. 210, related to credit for employment of certain new
employees.
Effective Date of Repeal
Repeal applicable to taxable years beginning after Dec. 31, 1983, and to carrybacks
from such years, see section 475(a)
of Pub. L. 98-369, set out as an Effective Date of 1984 Amendment note under section 21 of this title.
