Do you have a business of your own? Do you know that you can save money on tax by taking the advantage of certain business tax credits and deductions? If you spend money to improve the lives of the disabled persons, then you’re eligible for certain tax benefits. As for example, you can improve public access to your company or help the disabled employees and save money on tax.
3 Types of business tax credits and deductions
Read on to know about 3 types of business tax credits and deductions.
Architectural Barrier Removal Tax Deduction
The Architectural and Barrier Removal Tax Deduction encourages both small and large businesses to remove transportation and architectural barriers so that the elderly and disabled persons do not have problems in mobility. Businesses of any size are eligible to claim as much as $15,000 deduction in a year; this limit applies to a partnership and each of the partners as well.
However, a business needs to satisfy the eligibility criteria in order to claim the tax deduction. You can claim deduction on certain architectural barrier removal costs, such as, parking lots, walkways, stairs, ramps, doorways, entrances, water fountains, protruding objects, etc.
Disabled Access Credit (DAC)
Small businesses can claim a non-refundable tax credit if they incur expenses in order to provide access to persons with certain disabilities. A business must satisfy the eligibility criteria in order to claim the tax credit. It should have earned $1 million or less and the full time employee strength should not have been more than 30 in the previous year. The businesses satisfying these criteria can claim Disabled Access Credit (DAC) each year they incur these expenditures. Usually, you may get a tax credit for about 50% of the eligible expenditures ranging between $250 and $1,000 a year.
Work Opportunity Tax Credit (WOTC)
WOTC (Work Opportunity Tax Credit) is actually a combination of several tax credits that are given to the employers who hire individuals from a specific ‘target group’. The new hired employee must represent any of the following 9 target groups.
Food stamp recipient
Summer youth employee
TANF (Long-Term Temporary Assistance for Needy Families) recipients
Other TANF recipients
Designated community resident
Qualified ex-felon
Vocational Rehabilitation (VR) referrals
SSI (Supplemental Security Income) recipient
Qualified and disabled veteran
An employer can claim the tax credit if an employee from one of the above target groups works for at least 90 days or 120 hours in the organization.
So, take the advantage of these business tax credits and deductions by doing the needful. It will help you to save a substantial amount of money that otherwise you need to pay as tax.
Keyphrase: tax, tax credits and deductions, business tax credits and deductions
Description: Gather knowledge about 3 types of business tax credits and deductions that you may claim if your business satisfies that eligibility criteria.
