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26 USC Sec. 44 01/22/02

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle A - Income Taxes

CHAPTER 1 - NORMAL TAXES AND SURTAXES

Subchapter A - Determination of Tax Liability

PART IV - CREDITS AGAINST TAX

Subpart D - Business Related Credits

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Sec. 44. Expenditures to provide access to disabled individuals

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(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.

(b) Eligible small business

For purposes of this section, the term ''eligible small

business'' means any person if -

(1) either -

(A) the gross receipts of such person for the preceding

taxable year did not exceed $1,000,000, or

(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

(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.

For purposes of this section -

(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).

(2) Certain expenditures included

The term ''eligible access expenditures'' includes amounts paid

or incurred -

(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,

(B) to provide qualified interpreters or other effective

methods of making aurally delivered materials available to

individuals with hearing impairments,

effective methods of making visually delivered materials

available to individuals with visual impairments,

(D) to acquire or modify equipment or devices for individuals

with disabilities, or

(E) to provide other similar services, modifications,

materials, or equipment.

(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.

(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.

(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.

(d) Definition of disability; special rules

For purposes of this section -

(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).

(2) Controlled groups

(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.

(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.

(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.

(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.

(5) Gross receipts

Gross receipts for any taxable year shall be reduced by returns

and allowances made during such year.

(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.

(7) Denial of double benefit

In the case of the amount of the credit determined under this

section -

(A) no deduction or credit shall be allowed for such amount

under any other provision of this chapter, and

(B) no increase in the adjusted basis of any property shall

result from such amount.

(e) Regulations

The Secretary shall prescribe regulations necessary to carry out

the purposes of this section.

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(Added Pub. L. 101-508, title XI, Sec. 11611(a), Nov. 5, 1990, 104

Stat. 1388-501.)

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REFERENCES IN TEXT

The Americans With Disabilities Act of 1990, referred to in

subsecs. (c)(1) and (d)(1) is Pub. L. 101-336, July 26, 1990, 104

Stat. 327, as amended, which is classified principally to chapter

126 (Sec. 12101 et seq.) of Title 42, The Public Health and

Welfare. For complete classification of this Act to the Code, see

Short Title note set out under section 12101 of Title 42 and

Tables.

The date of the enactment of this section, referred to in

subsecs. (c)(1), (4) and (d)(1), is the date of enactment of Pub.

L. 101-508, which was approved Nov. 5, 1990.

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PRIOR PROVISIONS

A prior section 44, added Pub. L. 94-12, title II, Sec. 208(a),

Mar. 29, 1975, 89 Stat. 32; 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, related to

purchase of new principal residence, prior to repeal 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.

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.

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SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 38, 39 of this title.