Let’s start with the fine print: I am not a tax professional and the following post does not constitute any professional or legal advice. However, this is very likely a topic that our customers can benefit from, so please consult your own tax person about the following info.
As an incentive for businesses to comply with the Americans With Disabilities Act of 1990, the IRS offers a tax credit for small business and a tax deduction for all businesses who pay or incur expenses related to the ADA. Small businesses (less than $1 million in revenue with no more than 30 full-time employees) can use IRS form 8826 for the credit, which is half of the expenses after the first $250, with a maximum credit of $5,000.
Under “Eligible Access Expenditures”, the relevant item is number two: “To provide qualified interpreters or other methods of making audio materials available to hearing-impaired individuals” (emphasis mine.)
Business who don’t fall into the “small business” category may be able to use Section 190 of the IRS Code to claim a deduction up to $15,000, but the law is less clear about captioning and focuses more on “qualified architectural and transportation barrier removal expenses.” Again, please see your tax professional for advice on this deduction.
The Department of Justice has a toll-free info line that you can read about by clicking this link, or just phone 800-514-0301 (voice) or 800-514-0383 (TTY).
If you’re an existing CMP captioning customer, we’ll be compiling and sending statements of your 2010 captioning expenditures in the next few weeks, and please do not hesitate to contact us with any questions you may have – we’ll do our best to point you in the right direction.