Assistive Device Tax Credit
Iowa small businesses can reduce their taxes by buying or renting products or equipment, or by making physical changes to the workplace to help employees with disabilities get or keep a job.
An assistive device is any item, piece of equipment or product system that is used to increase, maintain or improve the functional capabilities of an individual with a disability in the workplace or on the job.
To qualify for the Assistive Device Tax Credit, a business:
- must be located in Iowa
- must employ 14 or fewer full time employees OR have $3 million dollars or less in gross annual receipts
The credit applies to expenditures made on or after January 1, 2000, and equals one-half of the first $5,000 in qualifying expenses each tax year. Excess credits can be refunded or carried over to the next tax year.
To receive the tax credit:
- Apply: Submit an application on forms available from the Department of Economic Development (or Revenue and Finance). Mail the completed form to:
Assistive Device Tax Credit Program, Division of Business Development
Iowa Department of Economic Development
200 East Grand Avenue
Des Moines, Iowa 50309
(Contact Small Business Liaison at 515.242.4793 for information, assistance or copies of materials in alternative formats.)
- Receive a Certificate of Entitlement: The IDED will review the application and issue a Certificate of Entitlement or a letter that explains why the application was not approved. Certificates will be numbered and have information about the devices, modifications, credit amounts and tax year.
- File the Certificate with your Iowa personal or business tax returns.
To Learn More About Accommodating Employees With Disabilities:
- The Job Accommodation Network (JAN)
Phone: 800.526.7234 (voice/TTY)
- The Iowa Program for Assistive Technology (IPAT)
Phone: 800.331.3027 (voice/TTY, 319-356-0550 (voice/TTY)
E-mail: infotech@uiowa.edu
- The Great Plains Disability Technical Assistance Center (DBTAC)
Phone: 800.949.4232
E-mail: hamburgl@missouri.edu
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