SECTION 44 DISABLED ACCESS CREDIT
A disabled access credit may be available to medical practices that have purchased POWER tables to enable such practices to facilitate the handicapped_

The credit is discussed in Section 44 of the IRS tax code. To qualify, the practice must meet the following qualifications.
1. Annual gross receipts of the practice do not exceed $1,000,000.00 or
2. The practice employed no more than 30 full time employees during the taxable year, which the tax credit is selected.

An eligible practice may elect to pay a credit against income tax. The credit is equal to 50% of the power table purchase price that is over $250.00 and not more than $10,250.00.

EXAMPLE
A doctor purchases an elevation table for $5195.00 and his tax advisor agrees that the expenditures meets the requirements of the section 44 credits. Assume the doctor has $100,000.00 in taxable income and is in the 31 % tax bracket.
Without credit With credit
Taxable income $100,000.00 $100.000.00
Tax at 31% $31,000.00 $31,000.00
Section 44 credit (50% X $5,195.00) 0 $2,597.50
Net tax due $31,000.00 $27,402.50

In addition, the practice can deduct $2,597.50 ($5,195.00 less the credit of $2597.50) in depreciation over the table's tax code economic life by utilizing the Section 179 deduction.

Utilizing the Section 179 deductions along with the Section 44 credits, the net out-ofpocket cost for the $5,195.00 table would be $1,393.43.

Cost of table $5,195.00
Section 44 credit $2,597.50
Section 179 deduction ($2,59750 x 31% tax savings) $804.07
Net cost $1,393.43
* * * * * CONSULT WITH YOUR TAX ACCOUNTANT TO MAKE SURE YOU (QUALIFY * * ** *

38,252 ELIGIBLE ACCESS EXPENDITURES
" Eligible access expenditures" (The expenditures eligible for the disabled access credit, see 38,251.) are amounts paid or incurred by an eligible small business to enable the business to comply with the AMERICANS WITH DISABILITIES ACT OF '90 (As in effect on Nov. 5, '90). 24 These expenditures must be reasonable in amount. Expenditures that are unnecessary for compliance are not eligible. 25
24 Code Sec. 44 (c) (1) (A ).
25 Code Sec. 44 (c) (4 ).
Eligible access expenditures include amounts paid or incurred for the following purposes: 26
26 Code Sec. 44 (c ).
A. Removal of architectural, communication, physical, or transportation barriers which prevent. a business from being accessible to , or usable by, individuals with disabilities. 27 In addition , amounts paid or incurred for the purposes must be paid or incurred in connection with a facility first placed in service on or before Nov. 5, '90. 28
B. To provide qualified interpreters or other effective methods of making aurally delivered materials available to individuals with hearing impairments. 29
C. To provide qualified readers, taped texts, and other effective methods of making visually delivered materials available to individuals with visual impairments. 30
D. To acquire or modify equipment or devices for individuals with disabilities. 31 E. To provide other similar services. modifications , materials, or equipment. 32
27 Code Sec. 44 (c) (2) (A ). 28 Code Sec. 44 (c) (4 ). 29 Code Sec. 44 (c) (2) (B ). 30 Code Sec. 44 (c) (2 ) (C ). 31 Code Sec. 44 (c) (2) (D ). 32 Code Sec. 44 (c) (2) (E ).

None of the above amount is eligible unless the taxpayer establishes to the satisfaction or IRS that the resulting removal of any barrier, or the provision of any services, modification , materials, or equipment, meets the standards issued by IRS with the concurrence of the Architectural and Transportation Barriers Compliance Board and set forth in IRS regs. 33
33 Code Sec. 44 (c) (5 ).
The term "disability has the same meaning as when used in the Americans With Disabilities As of '90 (As in effect on Nov. 5.'90). 34
34 Code Sec. 44 (D) (I ).
Tax Desk Analysis: Copyright 1997. Research institute of America Inc. 4/29/97