What is the federal DAC?
The federal DAC (Section 44 Internal Revenue Code) assists small businesses comply with the ADA (Americans with Disabilities Act). The DAC is available to any eligible small business and is equal to 50 percent of the eligible access expenditures which exceed $250, but do not exceed $10,250, for a maximum credit of $5,000 per year. The credit applies to expenditures paid or incurred and can be carried forward up to 15 years and back up to three years. The credit is claimed on Form 8826. • What is the Missouri DAC? The new state DAC assists small businesses when they have access expenditures that exceed the $10,250 federal limit. An eligible Missouri small business may take a state income tax credit of up to 50 percent of “eligible access expenditures” which exceed $10,250, but do not exceed $20,250, for a maximum credit of $5,000 a year. • Who is an eligible small business? An eligible small business is one whose gross receipts did not exceed $1 Million for the preceding tax year, or wh
