The US government has two tax incentives to purchase new equipment.
- Section 44 ADA Tax Credit
- Section 179 Accelerated Depreciation
What is Section 44 ADA Tax Credit?
A disabled access credit may be available to medical practices that have purchased MTI power table(s)/chair(s), because they enable such practices to facilitate access by disabled individuals. The credit is half the purchase price of the product up to $5000 with a $250 deductible.
Click here to download a handout that explains the ADA Section 44 Tax Credit and Section 179 Accelerated Depreciation. This handout will also calculate an estimated cost of your MTI chair or table by using these two tax benefits.
What requirements does a practice need to meet in order to use the ADA Section 44 Tax Credit?
To qualify, the practice must meet at least one of the following qualifications:
- Annual gross receipts of the practice do not exceed $1,000,000.
- The practice employs no more than 30 full-time employees during the taxable year before the taxable year in which the credit is elected.
What is the Section 179 Deduction?
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment, including MTI's cabinetry, purchased or financed during the tax year in which they put the purchased equipment in to use. This means when you buy (or lease) a piece of qualifying equipment, you can deduct the ENTIRE purchase price from your gross income up to the stated IRS limitations.
*The material provided is for information purposes only and is not meant to provide tax or financial advice. Please consult with your tax advisor. For the most up to date information, go to www.irs.gov.
