Memo: Assistance for Disability-Related Expenditures

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s-leg_554_002_015_tr

Transcription (Scripto)

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Extent (Dublin Core)

2 Pages

File Name (Dublin Core)

s-leg_554_002_015

Title (Dublin Core)

Memo: Assistance for Disability-Related Expenditures

Description (Dublin Core)

Memorandum regarding programs Senator Dole sponsored that provide assistance to businesses for disability-related expenditures. Programs include the technical assistance amendment to the ADA, the targeted jobs tax credit, the Pryor-Kohl disability access tax credit, and section 190 of the Internal Revenue Code.

Date (Dublin Core)

1990-10-26

Date Created (Dublin Core)

1990-10-26

Congress (Dublin Core)

101st (1989-1991)

Topics (Dublin Core)

See all items with this valuePeople with disabilities

See all items with this valueSmall business

See all items with this valueTax credits

See all items with this valueTax deductions

Policy Area (Curation)

Taxation

Creator (Dublin Core)

West, Maureen P. (Maureen Patricia), 1958-

Record Type (Dublin Core)

memorandums

Names (Dublin Core)

See all items with this valueUnited States. Americans with Disabilities Act of 1990

Rights (Dublin Core)

http://rightsstatements.org/vocab/CNE/1.0/

Language (Dublin Core)

eng

Collection Finding Aid (Dublin Core)

https://dolearchivecollections.ku.edu/index.php?p=collections/findingaid&id=23&q=

Physical Location (Dublin Core)

Collection 003, Box 554, Folder 2

Institution (Dublin Core)

Robert J. Dole Institute of Politics, University of Kansas, Lawrence, KS

Archival Collection (Dublin Core)

Robert J. Dole Senate Papers-Legislative Relations, 1969-1996

Full Text (Extract Text)

October 26, 1990
TO: Senator Dole
FROM: Maureen West
SUBJECT: Assistance for Disability-Related Expenditures

The recently enacted Americans with Disabilities Act (ADA) will require businesses and other public facilities to make "reasonable accommodations" for persons with disabilities. In some cases this could mean that a business will be required to make expenditures to adapt a job or service to a person with a disability.

A number of legislative initiatives designed to ease the financial burden placed on businesses by ADA were introduced this session. Outlined below are four programs you sponsored that provide financial and/or technical assistance to businesses for disability-related expenditures: EEOC technical assistance, targeted jobs tax credit (TJTC), Pryor-Kohl disability access tax credit, and Section 190 deductions.

Technical Assistance
You authored a technical assistance amendment to ADA that would assist with its implementation. This amendment directs the Equal Employment Opportunity Commission (EEOC) to clarify and answer questions regarding the rights of persons with disabilities and the obligations of businesses under ADA. This technical assistance amendment was also included in the Commerce, Justice, State, and Judiciary Appropriations Bill. The conference agreement includes $1 million for the implementation of a technical assistance program as authorized by section 506 of ADA.

Targeted Jobs Tax Credit
The targeted jobs tax credit, which aims to increase the employability of disadvantaged youth and persons with disabilities, has been extended for another 15 months. Many businesses in Kansas have successfully utilized this program to employ people with disabilities. The extension will further ease. the burden faced by businesses in accommodating persons with disabilities as required by ADA.

Pryor-Kohl Disability Access Tax Credit
The tax credit is designed to assist the small business community with the cost of ADA compliance. The credit applies to any ADA-related expenditures for the accommodation of persons with disabilities. ADA-related expenditures include the following: removal of architectural, transportation, physical, or communications barriers; procurement or modification of equipment and/or services; translation of materials for the visually or hearing impaired; personal assistant services; technical support and training for business and employee compliance; auxiliary aids and services. The variety of eligible disability related expenditures will enable businesses to more easily accommodate persons with disabilities.

Small businesses are responsible for the first $250 of expense to accommodate the disabled. Costs above $250 are eligible for a 50% non-refundable credit, up to $10,250. Any ADA-disability related expenditure above $10,250 is eligible for a more restricted deduction of $15,000. If the entire access tax credit is not used in one year, it can be accumulated and carried forward to subsequent years or carried back to previous tax years.

Only small businesses are eligible to receive tax credit. A small business is defined as any business with less than $1 million gross receipts or fewer than 30 full time employees qualify for the credit. Eligibility for the tax credit is narrowly defined for several reasons. Small businesses will be called on most often to accommodate and employee persons with disabilities. Small business have limited resources and, therefore, require the most technical and financial assistance to comply with ADA. In addition, all other businesses qualify for the $15,000 deductior.

The access tax credit is revenue neutral. The cost of this new credit, however, is offset by lowering the deduction in Section 190 of the Internal Revenue Code to $15,000.

Section 190
Section 190 of the Internal Revenue Code, which you authored, provides a $35,000 deduction for disability related expenditures. A disability related expenditure is defined as the removal of architectural and transportation barriers to the disabled and elderly. Given a number of assumptions related to company size and income, large businesses have tended to benefit more from the Section 190 deduction.

The Pryor-Kohl Disability Access Tax Credit (as described above) lowers the deduction to $15,000. Justification for this change to the Section 190 deduction is based upon two arguments. First, Section 190 does not focus assistance effectively to small businesses. Small businesses, however, will bare the burden of ADA and will most need help. And second, Section 190 deductions for disability related expenditures apply to only a limited class of expenditures.

Consequently, Section 190 provides a $15,000 deduction for disability related expenditures.

October 26, 1990
TO: Senator Dole
FROM: Maureen West
SUBJECT: Assistance for Disability-Related Expenditures

The recently enacted Americans with Disabilities Act (ADA) will require businesses and other public facilities to make "reasonable accommodations" for persons with disabilities. In some cases this could mean that a business will be required to make expenditures to adapt a job or service to a person with a disability.

A number of legislative initiatives designed to ease the financial burden placed on businesses by ADA were introduced this session. Outlined below are four programs you sponsored that provide financial and/or technical assistance to businesses for disability-related expenditures: EEOC technical assistance, targeted jobs tax credit (TJTC), Pryor-Kohl disability access tax credit, and Section 190 deductions.

Technical Assistance
You authored a technical assistance amendment to ADA that would assist with its implementation. This amendment directs the Equal Employment Opportunity Commission (EEOC) to clarify and answer questions regarding the rights of persons with disabilities and the obligations of businesses under ADA. This technical assistance amendment was also included in the Commerce, Justice, State, and Judiciary Appropriations Bill. The conference agreement includes $1 million for the implementation of a technical assistance program as authorized by section 506 of ADA.

Targeted Jobs Tax Credit
The targeted jobs tax credit, which aims to increase the employability of disadvantaged youth and persons with disabilities, has been extended for another 15 months. Many businesses in Kansas have successfully utilized this program to employ people with disabilities. The extension will further ease. the burden faced by businesses in accommodating persons with disabilities as required by ADA.

Pryor-Kohl Disability Access Tax Credit
The tax credit is designed to assist the small business community with the cost of ADA compliance. The credit applies to any ADA-related expenditures for the accommodation of persons with disabilities. ADA-related expenditures include the following: removal of architectural, transportation, physical, or communications barriers; procurement or modification of equipment and/or services; translation of materials for the visually or hearing impaired; personal assistant services; technical support and training for business and employee compliance; auxiliary aids and services. The variety of eligible disability related expenditures will enable businesses to more easily accommodate persons with disabilities.

Small businesses are responsible for the first $250 of expense to accommodate the disabled. Costs above $250 are eligible for a 50% non-refundable credit, up to $10,250. Any ADA-disability related expenditure above $10,250 is eligible for a more restricted deduction of $15,000. If the entire access tax credit is not used in one year, it can be accumulated and carried forward to subsequent years or carried back to previous tax years.

Only small businesses are eligible to receive tax credit. A small business is defined as any business with less than $1 million gross receipts or fewer than 30 full time employees qualify for the credit. Eligibility for the tax credit is narrowly defined for several reasons. Small businesses will be called on most often to accommodate and employee persons with disabilities. Small business have limited resources and, therefore, require the most technical and financial assistance to comply with ADA. In addition, all other businesses qualify for the $15,000 deductior.

The access tax credit is revenue neutral. The cost of this new credit, however, is offset by lowering the deduction in Section 190 of the Internal Revenue Code to $15,000.

Section 190
Section 190 of the Internal Revenue Code, which you authored, provides a $35,000 deduction for disability related expenditures. A disability related expenditure is defined as the removal of architectural and transportation barriers to the disabled and elderly. Given a number of assumptions related to company size and income, large businesses have tended to benefit more from the Section 190 deduction.

The Pryor-Kohl Disability Access Tax Credit (as described above) lowers the deduction to $15,000. Justification for this change to the Section 190 deduction is based upon two arguments. First, Section 190 does not focus assistance effectively to small businesses. Small businesses, however, will bare the burden of ADA and will most need help. And second, Section 190 deductions for disability related expenditures apply to only a limited class of expenditures.

Consequently, Section 190 provides a $15,000 deduction for disability related expenditures.