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. To qualify for the Assistive Device Tax Credit, a business must be located in Iowa and 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:

 

1. Apply: Submit an application on forms available from the Department of Economic Development (or Revenue and Finance). Mail the completed form to the 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 Wynona Bohemann at 515-242-4793 for information, assistance or copies of materials in alternative formats.

2. 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.

3. File the Certificate with your Tax Return: Attach the Certificate of Entitlement to your Iowa personal or business tax returns.

Information about Assistive Devices and Workplace Modifications: 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. Workplace modifications are physical alterations to the work environment. To learn more about how to accommodate employees with disabilities, contact these programs: The Job Accommodation Network, (JAN) 800-526-7234 (voice/TTY), or at http://janweb.icdi.wvu.edu; The Iowa Program for Assistive Technology (IPAT), 800-331-3027 (voice/TTY), or 319-356-0550 (voice/TTY), infotech@uiowa.edu (e-mail), or at http://www.uiowa.edu/infotech; The Great Plains Disability Technical Assistance Center (DBTAC), 800-949-4232, hamburgl@missouri.edu (e-mail), or at http://www.adaproject.org.

Click here to view the application with instructions in Adobe PDF format. In order to view the PDF you will need to download and install Adobe's Acrobat Reader from here.

Supporting Documentation: Upon request, additional documentation must be provided to the IDED or the IDRF about employee, business or project status.

Laws and Regulations: 2000 Iowa Acts House File 2560, Iowa Code Sections 422.11E, 422.33 and 261 IAC 66 (IDED), 701 IAC 42.14 (IDRF).