P.A.I.D.
All credits
Section 44

The Disabled Access Credit

Spent, or need to spend, money making your business accessible - ramps, accessible restrooms, signage, doorways? A small business can claim half of it back as a federal tax credit, and make every customer feel welcome at the same time.

In a nutshell

  • Covers 50% of eligible access expenditures between $250 and $10,250 - a maximum credit of $5,000 per year.
  • For an eligible small business: 30 or fewer full-time employees, OR $1M or less in gross receipts last year.
  • Eligible expenses include removing barriers, accessible restrooms/parking/signage, interpreters, and adaptive equipment to comply with the ADA.
  • Recurring - you can claim it again in any year you incur new eligible access costs.
  • Claimed on IRS Form 8826, flowing into the General Business Credit (Form 3800).

How the math works

50%
Of eligible expenditures
on spending above $250, up to $10,250
$5,000
Maximum annual credit
for eligible small businesses

Worked example

A restaurant spends $5,250 adding an accessible restroom and a ramp.

  • • Creditable base: $5,250 − $250 = $5,000
  • • Credit: 50% × $5,000 = $2,500

Why it's worth spending now

An ADA accessibility lawsuit typically costs $10,000+ just to settle, before you've fixed anything. Spending on access upfront is almost always cheaper than defending a claim - and it makes every customer feel welcome in your space. This credit gives you half of that spend back.

In California especially, consider commissioning a CASp (Certified Access Specialist) inspection. It pinpoints exactly what to correct, and a CASp report gives you legal protections that help defend against an ADA suit and reduce damages. Your CPA confirms which related costs qualify for the credit.

Do you qualify? The real limits

The bright-line tests and the things that quietly disqualify a business (2026 tax year).

Credit
50% of eligible access spend between $250 and $10,250 → max $5,000/yr
Eligible small business
Prior-year gross receipts ≤$1,000,000 OR ≤30 full-time employees (either qualifies)
Full-time
≥30 hours/week for ≥20 weeks in the prior year

What can disqualify you

  • New construction does NOT qualify - only adapting a facility first placed in service before 11/5/1990.
  • The spend must be ADA-required barrier removal (not general renovation or gold-plating beyond ADA standards).
  • Can't use the same dollars for both the §44 credit and the §190 barrier-removal deduction.
  • Related businesses share one $250–$10,250 band (controlled-group aggregation).

Common reasons businesses get denied

  • The spend was on a facility first placed in service after 11/5/1990 (effectively new construction).
  • General remodeling or upgrades that weren't required to comply with the ADA.
  • Over 30 full-time employees AND over $1M prior-year gross receipts (fails both size prongs).
  • Using the same dollars for both the §44 credit and the §190 barrier-removal deduction.
  • Counting the first $250 or spend above the $10,250 ceiling.

Even if you qualify

  • Nonrefundable (General Business Credit liability limit; unused carries back 1 / forward 20).
  • Annual - the band and $5,000 cap reset each year.

Check your state

State figures as of June 2026; many are indexed and change mid-year. Confirm with your state labor department and CPA.

Limits that apply to every federal credit

They're nonrefundable
Every credit here offsets income tax but can't create a refund (§38 liability limit). A business with little or no tax liability gets little benefit this year - unused amounts carry back 1 year and forward up to 20 (§39).
Related businesses are combined
If you own multiple businesses under >50% common control, the IRS treats them as ONE employer for the size tests (§52/§414). Several small entities can together blow past the under-25-FTE, 30-employee, or 100-employee ceilings even though each looks small alone.
No double-dipping
The deduction for the wages/premiums/expenses behind a credit is reduced by the credit amount (§280C), and the same dollar can't fund two different credits.
Pass-through & passive limits
For S-corps and partnerships the credit flows to owners on a K-1, where each owner's liability and passive-activity limits (§469) decide how much they can actually use.

Plain-English summary, not tax advice. Your CPA confirms eligibility for your specific business.

Want to know what this is worth for your business?

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