Perhaps it is our aging population or the inspiration of individuals, such as Rick Hansen or the Special Olympics athletes and volunteers, that has motivated the tax authorities to provide tax assistance to businesses to improve accessibility. Whatever the motivation, any assistance provided is welcome.

Improvements

Historically, improvements made to a structure, regardless of the purpose, were capitalized and the deduction was claimed against income utilizing the Capital Cost Allowance formulas provided within the Income Tax Act. Thus, rather than writing off a $15,000 improvement in the year improvements were made, the write-off was scheduled over a number of years. This was, and still is, a deterrent to small businesses, as the cash flow required to make these improvements is not offset by the reduced cash payout for taxable income.

With the advent of a more liberal approach to assisting both businesses and the disabled, there are now specific expenditures that are allowed as a 100 % expense against income, even though traditionally they could be viewed as capital in nature. These include:

• Ramps, either interior or exterior, that allow access for a person with mobility impairment;
• Washroom renovations that allow access to wheelchairs. This could be a large area of expenditure when one considers that access may require larger doors, larger stalls, lowering or moving wash basins and dryers and changing light switches;
• Modifications to doors and elevators to accommodate a person in a wheelchair;
• Audio and/or Braille position indicators in elevators for the visually impaired;
• Electric doors that are operational with push buttons; and
• The installation of visual fire alarms for the hearing impaired.

Transportation

Outside of the capital improvement area, the CRA is also providing incentives to help businesses, the blind and disabled bring together their respective skill sets without incurring additional costs.

Businesses that employ blind or disabled individuals and pay a reasonable allowance for travel costs to and from work, including parking at the workplace, are allowed to deduct these expenses. To add icing to the cake, employees are not required to include these amounts in their income as a taxable benefit.

Talk to Your Chartered Accountant

If it's time to renovate your premises, talk to your chartered accountant to determine the best means of ensuring that your business is able to take advantage of these tax incentives while lending a helping hand.