Question

535 Tax Credits For Barrier Removal
As part of the Omnibus Budget Reconciliation Act of 1990 (OBRA '90),
Congress created a new tax credit to assist certain small businesses in
complying with the Americans with Disabilities Act (ADA). During the debate
over the act, small business groups sought expanded tax credits as a fair
exchange for not being exempted from the public accommodations
provisions.
OBRA '90 gives small business owners an annual tax credit to cover
expenses incurred from making their facilities and programs accessible to
disabled people. Eligible businesses may claim a tax credit equal to 50
percent of the access expenditures between $250 and $10,250 they incur to
comply with the ADA. Only businesses earning less than $1 million during
the taxable year and employing 30 or fewer full-time workers are eligible for
the credit. Specifically, the law allows a business to recover one-half the
costs of:
● Removing architectural, communications, physical, or transportation
barriers that make a business inaccessible;
● Providing qualified interpreters or other effective methods to make
aural materials available to hearing-impaired people;
● Acquiring or modifying equipment and devices for disabled individuals;
and/or
● Providing other similar services, modifications, materials or equipment.
The access credit is limited to the taxable year, and unused portions
from one year cannot be carried over to the next.It does not apply to
costs incurred from new construction.
Existing Tax Deduction Reduced
OBRA '90 reduced from $35,000 to $15,000 an existing tax deduction that
all businesses can take to cover the costs of removing architectural barriers
from their facilities (Internal Revenue Code 190(c)). This includes changes
made to buildings, equipment, walkways, roads and parking lots, and also
applies to businesses that make their public transportation vehicles
accessible to disabled riders. For an expense to be deductible, it must meet
standards established by the Internal Revenue Service. In general, the
expense must be incurred for removing barriers that:
● Pose a substantial barrier to disabled people;
● Affect at least one major class of disabled people (such as blind, deaf
or wheelchair using people); or
● Are removed without creating new barriers In addition, for the expense to be deductible, the removal of barriers must
conform to detailed qualification standards to ensure accessibility.
Deductions must be claimed in the year that alterations are made and
cannot be claimed for new construction or complete renovation. For more
detailed information on the existing tax deductions, order Tax Information
for Handicapped and Disabled Individuals, IRS Publication No. 907, from
your local IRS office, or call 1-800-424-FORMS.

Why did the report's author most likely use the bulleted list format in the first
section?
A)
The list breaks up information in a way that makes it easier for readers to
grasp.
B) The bulleted list format emphasizes the importance of the content.
C) Bulleted lists are commonly used in government reports like this one.
D)
The bulleted list format shows the relationships between the information in
the bullet points.

Answer 1

A) The list breaks up information in a way that makes it easier for readers to grasp.

Bulleted lists are used here to present several related items clearly and accessibly, making the types of covered expenses easier to scan and understand.