Franchise Tax Credits for Child-Care The Texas Legislature offers two franchise tax credits related to day care and after school care programs. Eligible corporations may take advantage of these credits for qualifying expenditures made in Texas on or after January 1, 2000. These credits are administrated by the Texas Comptroller of Public Accounts, which may be contacted at 800-252-1381.
Small Business Tax Credit IRS Code Section 44, Disabled Access Credit The Disabled Access Credit provides a non-refundable credit for small businesses that incur expenditures for the purpose of providing access to persons with disabilities.
An eligible small business is one that earned $1 million or less, or had no more than 30 full-time employees in the previous year. They may take the credit each and every year they incur access expenditures. The maximum tax credit is $5,000 per year. For more information on the Disabled Access Credit, visit the IRS website and review Chapter 4 – General Business Credits in Publication 334 Tax Guide for Small Business.
Transportation (Commuting) Benefits
This fringe benefit applies to the following:
A transit pass
Riding in a commuter highway vehicle between the employee’s home and workplace
The fringe benefit applies whether you provide one or a combination of these benefits to your employees. The IRS administers the qualified transportation benefits and can be reached at 800-829-1040. Details on the benefits are covered in IRS Publication 15-B.
Dependent Care Assistance
An employer may earn a fringe benefit for providing dependent care services either paid (directly or indirectly), or provided to an employee under a dependent care assistance program that covers only your employees. For more information on the dependent care assistance fringe benefits, review IRS Publication 15-B or contact the IRS at 800-829-1040.
Architectural / Transportation Tax Deduction IRS Code Section 190, Barrier Removal
The Architectural Barrier Removal Tax Deduction encourages businesses of any size to remove architectural and transportation barriers to the mobility of persons with disabilities and the elderly. Businesses may claim a deduction of up to $15,000 a year for qualified expenses for items that normally must be capitalized. Businesses claim the deduction by listing it as a separate expense on their income tax return.
Also, businesses may use the Disabled Tax Credit and the architectural / transportation tax deduction together in the same tax year, if the expenses meet the requirements of both sections. To use both, the deduction is equal to the difference between the total expenditures and the amount of the credit claimed. For more information on the Architectural Barrier Removal Tax Deduction, visit the IRS website and review Chapter 7 Costs You Can Deduct or Capitalize in Publication 535 Business Expenses.