Origin: Massachusetts conforms to Internal Revenue Code ("Code") § 190, which allows taxpayers to elect an immediate deduction of up to $15,000 of expenses incurred in removing architectural or transportation barriers to the handicapped and elderly. The cost of an improvement to a business asset is normally a capital expense, which would normally have to be capitalized and deducted over a period of years. The accelerated deduction applies to the first $15,000 of expenses. Costs over that amount must be capitalized and deducted under the generally applicable depreciation schedules set out in the Code.
Expenses eligible for the deduction include costs incurred in making a building or public transportation vehicle more accessible to people with disabilities and the elderly. Examples with regard to buildings include installing ramps widening doors modifying restrooms and lowering counters to accommodate customers in wheelchairs. Examples with regard to vehicles include installing lifts for wheelchairs and modifying signage and public address systems to accommodate the visually or hearing impaired. The deduction is not available for costs incurred in completely renovating a building or vehicle or to the cost of replacing depreciable property in the normal course of business.
The immediate deduction of eligible expenses results in a deferral of tax. The deferral constitutes a Massachusetts tax expenditure.
Origin: IRC §190; M.G.L. c. 63, §30.4
Corporate Excise Tax
Accelerated Deductions from Gross Income
2.303
Expenditures to remove architectural and transportation barriers to the handicapped and elderly
Massachusetts conforms to Internal Revenue Code ("Code") § 190, which allows taxpayers to elect an immediate deduction of up to $15,000 of expenses incurred in removing architectural or transportation barriers to the handicapped and elderly. The cost of an improvement to a business asset is normally a capital expense, which would normally have to be capitalized and deducted over a period of years. The accelerated deduction applies to the first $15,000 of expenses. Costs over that amount must be capitalized and deducted under the generally applicable depreciation schedules set out in the Code.<BR><BR>Expenses eligible for the deduction include costs incurred in making a building or public transportation vehicle more accessible to people with disabilities and the elderly. Examples with regard to buildings include installing ramps widening doors modifying restrooms and lowering counters to accommodate customers in wheelchairs. Examples with regard to vehicles include installing lifts for wheelchairs and modifying signage and public address systems to accommodate the visually or hearing impaired. The deduction is not available for costs incurred in completely renovating a building or vehicle or to the cost of replacing depreciable property in the normal course of business.<BR><BR>The immediate deduction of eligible expenses results in a deferral of tax. The deferral constitutes a Massachusetts tax expenditure.
<a href="https://www.law.cornell.edu/uscode/text/26/190" target="_blank">IRC §190</a>; M.G.L. <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section30" target="_blank">c. 63, §30.4</a>
0.5
0.5
0.5
0.5
0.5