IRS Sections 44 and 190: Potential Tax Savings for Commercial ADA Pool Lifts
Installing a commercial pool lift to help meet Americans with Disabilities Act (ADA) accessibility requirements is a critical compliance step for hotels, resorts, fitness centers, medical facilities, apartment communities, senior living facilities, and public pools. But upgrading your facility should not have to completely drain your capital improvement budget.
To encourage accessibility improvements, the federal tax code provides potential credits and deductions that may help eligible businesses offset part of the cost of qualified barrier-removal equipment. Two important provisions are Internal Revenue Code Section 44, the Disabled Access Credit, and Section 190, the Architectural and Transportation Barrier Removal Deduction.
For commercial pool owners, these incentives may help reduce the effective cost of purchasing and installing qualified ADA-compliant pool lift equipment, including fixed-anchor lifts from trusted manufacturers such as S.R. Smith and Aqua Creek.
Here is how these tax provisions may apply to a commercial pool lift project—and what your CPA should review before you claim them.
Section 44: The Disabled Access Credit for Eligible Small Businesses
Unlike a standard deduction that reduces taxable income, a tax credit can provide a dollar-for-dollar reduction of federal tax liability. Under 26 U.S. Code § 44, eligible small businesses may be able to claim the Disabled Access Credit for qualified accessibility-related expenditures, including certain equipment or modifications that help make a facility accessible to individuals with disabilities.
The credit can reduce the amount of federal tax owed, subject to IRS rules and the business’s specific tax situation.
Who Qualifies for the Disabled Access Credit?
To be eligible for this credit, the business must generally meet at least one of these two rules from the preceding tax year:
- Gross annual receipts of $1,000,000 or less.
- 30 or fewer full-time employees, generally defined by the IRS as employees working at least 30 hours per week for 20 or more calendar weeks during the year.
Important note: Businesses under common control or part of a controlled group may need to be treated as a single taxpayer when calculating eligibility and credit limits. This is especially important for franchise groups, hotel groups, property management companies, and multi-location operators.
How the Section 44 Credit Works
The Section 44 credit generally covers 50% of eligible access expenditures that fall between a $250 floor and a $10,250 ceiling.
The formula: Credit = (Total eligible cost up to $10,250 − $250) × 50%
Maximum annual credit: $5,000
Commercial Pool Lift Example
Let’s say a boutique hotel buys a premium commercial pool lift package from Swimlifts.com, such as an S.R. Smith multiLift2 or Splash! series lift with required deck anchors and shipping, for a total eligible cost of $10,250.
By applying the formula, the business subtracts the first $250, leaving $10,000 in eligible expenses. The business may then claim 50% of that amount as a credit.
The result could be a federal tax credit of up to $5,000, potentially lowering the effective after-credit equipment cost to $5,250, depending on the business’s tax position.
Section 190: The Architectural Barrier Removal Tax Deduction
If your business is too large to qualify for the Section 44 small business credit, you may still be able to benefit from 26 U.S. Code § 190.
Section 190 allows businesses of any size, including large resort chains, municipal fitness facilities, corporate property groups, and other commercial operators, to claim a deduction for qualified architectural and transportation barrier removal expenses.
Instead of forcing every qualifying accessibility improvement to be depreciated over multiple years, Section 190 may allow a business to immediately expense up to $15,000 per year for qualified accessibility upgrades.
Because a pool without an accessible means of entry may create an accessibility barrier, the purchase and installation of qualifying ADA-compliant lift equipment may be eligible under Section 190 when the project meets the applicable IRS requirements.
Can Businesses Use Both Section 44 and Section 190?
Potentially, yes—but not on the same dollars.
You generally cannot claim a Section 44 credit and also deduct, capitalize, or use the same credited expense for another tax benefit. However, a business may be able to layer these two incentives on larger accessibility projects by applying the Section 44 credit to one portion of the eligible expenses and using Section 190 for a separate remaining portion.
Example: Combining the Credit and Deduction
Imagine an eligible small business completes a larger aquatic accessibility upgrade, such as installing a heavy-duty lift for the main pool and a specialized rotational spa lift for an elevated hot tub, for a total project cost of $15,000.
- Step 1: Apply the first $10,250 of eligible expenditure toward Section 44 to potentially secure the maximum $5,000 Disabled Access Credit.
- Step 2: Evaluate whether the remaining $4,750 may qualify as a Section 190 architectural barrier removal deduction to help lower taxable income.
This is where a CPA becomes especially important. The credit, deduction, depreciation strategy, entity structure, and documentation all need to be handled correctly.
Important Fine Print for Commercial Pool Lift Buyers
New Construction May Not Qualify the Same Way
For Section 44, eligible expenditures generally do not include certain barrier-removal expenses connected with a facility first placed in service after November 5, 1990. For new construction or major new-build projects, ask your CPA whether the expense qualifies before assuming the credit applies.
ADA Compliance Depends on Equipment and Installation
The equipment you purchase must be ADA compliant, and the final installation must also meet applicable requirements. Purchasing non-compliant, improperly anchored, or incorrectly installed units may jeopardize both accessibility compliance and tax eligibility.
Swimlifts.com offers commercial ADA-compliant pool lift options from trusted manufacturers, but buyers should confirm that the selected lift, anchoring method, installation location, and final setup meet the applicable ADA and IRS requirements for their facility.
Documentation Matters
Keep detailed records for your project, including line-item invoices, shipping or freight documentation, anchoring hardware, installation labor, concrete core-drilling, electrical work if applicable, and any other accessibility-related expenses. Strong documentation can make the review process easier for your CPA, ownership group, or board approval team.
How to Claim Potential Tax Savings on a Commercial ADA Pool Lift
Use the following steps to help your CPA or tax preparer evaluate the available tax benefits:
1. Document the Project
Keep line-item invoices detailing the pool lift purchase, freight or shipping fees, anchoring components, installation costs, and any related site preparation. The cleaner your documentation, the easier it is for your tax professional to determine which expenses may qualify.
2. Review IRS Form 8826
Eligible small businesses use IRS Form 8826, Disabled Access Credit, to calculate the Section 44 credit. The disabled access credit is part of the general business credit and may be reported through Form 3800, depending on the taxpayer’s filing situation.
3. Evaluate the Section 190 Deduction
For any remaining eligible expenses that are not used for the Section 44 credit, your CPA may evaluate whether those costs can be claimed under Section 190 as qualified architectural barrier removal expenses.
4. Consult a Qualified Tax Professional
This article is for general educational purposes only and should not be treated as tax, legal, or accounting advice. Federal and state tax rules, entity structure, controlled-group rules, depreciation strategy, tax liability, and project-specific facts can all affect eligibility. Always consult a qualified CPA or tax professional before claiming a credit or deduction.
Upgrade Your Facility and Protect Your Bottom Line
Investing in accessibility is not just about reducing the risk of non-compliance. It can also be a smart financial move when tax incentives, operational safety, guest experience, and long-term facility planning are considered together.
Ready to make your pool more accessible and easier to approve in the budget? Explore Swimlifts.com’s commercial ADA pool lift options or contact our team for a detailed quote your facility manager, ownership group, or CPA can review.
IRS Sections 44 and 190: How Businesses May Reduce the Cost of a Commercial ADA Pool Lift
Installing a commercial pool lift to help meet Americans with Disabilities Act (ADA) accessibility requirements is a critical compliance step for hotels, resorts, fitness centers, medical facilities, apartment communities, senior living facilities, and public pools. But upgrading your facility should not have to completely drain your capital improvement budget.
To encourage accessibility improvements, the federal tax code provides potential credits and deductions that may help eligible businesses offset part of the cost of qualified barrier-removal equipment. Two important provisions are Internal Revenue Code Section 44, the Disabled Access Credit, and Section 190, the Architectural and Transportation Barrier Removal Deduction.
For commercial pool owners, these incentives may help reduce the effective cost of purchasing and installing qualified ADA-compliant pool lift equipment, including fixed-anchor lifts from trusted manufacturers such as S.R. Smith and Aqua Creek.
Here is how these tax provisions may apply to a commercial pool lift project—and what your CPA should review before you claim them.
Section 44: The Disabled Access Credit for Eligible Small Businesses
Unlike a standard deduction that reduces taxable income, a tax credit can provide a dollar-for-dollar reduction of federal tax liability. Under 26 U.S. Code § 44, eligible small businesses may be able to claim the Disabled Access Credit for qualified accessibility-related expenditures, including certain equipment or modifications that help make a facility accessible to individuals with disabilities.
The credit can reduce the amount of federal tax owed, subject to IRS rules and the business’s specific tax situation.
Who Qualifies for the Disabled Access Credit?
To be eligible for this credit, the business must generally meet at least one of these two rules from the preceding tax year:
- Gross annual receipts of $1,000,000 or less.
- 30 or fewer full-time employees, generally defined by the IRS as employees working at least 30 hours per week for 20 or more calendar weeks during the year.
Important note: Businesses under common control or part of a controlled group may need to be treated as a single taxpayer when calculating eligibility and credit limits. This is especially important for franchise groups, hotel groups, property management companies, and multi-location operators.
How the Section 44 Credit Works
The Section 44 credit generally covers 50% of eligible access expenditures that fall between a $250 floor and a $10,250 ceiling.
The formula: Credit = (Total eligible cost up to $10,250 − $250) × 50%
Maximum annual credit: $5,000
Commercial Pool Lift Example
Let’s say a boutique hotel buys a premium commercial pool lift package from Swimlifts.com, such as an S.R. Smith multiLift2 or Splash! series lift with required deck anchors and shipping, for a total eligible cost of $10,250.
By applying the formula, the business subtracts the first $250, leaving $10,000 in eligible expenses. The business may then claim 50% of that amount as a credit.
The result could be a federal tax credit of up to $5,000, potentially lowering the effective after-credit equipment cost to $5,250, depending on the business’s tax position.
Section 190: The Architectural Barrier Removal Tax Deduction
If your business is too large to qualify for the Section 44 small business credit, you may still be able to benefit from 26 U.S. Code § 190.
Section 190 allows businesses of any size, including large resort chains, municipal fitness facilities, corporate property groups, and other commercial operators, to claim a deduction for qualified architectural and transportation barrier removal expenses.
Instead of forcing every qualifying accessibility improvement to be depreciated over multiple years, Section 190 may allow a business to immediately expense up to $15,000 per year for qualified accessibility upgrades.
Because a pool without an accessible means of entry may create an accessibility barrier, the purchase and installation of qualifying ADA-compliant lift equipment may be eligible under Section 190 when the project meets the applicable IRS requirements.
Can Businesses Use Both Section 44 and Section 190?
Potentially, yes—but not on the same dollars.
You generally cannot claim a Section 44 credit and also deduct, capitalize, or use the same credited expense for another tax benefit. However, a business may be able to layer these two incentives on larger accessibility projects by applying the Section 44 credit to one portion of the eligible expenses and using Section 190 for a separate remaining portion.
Example: Combining the Credit and Deduction
Imagine an eligible small business completes a larger aquatic accessibility upgrade, such as installing a heavy-duty lift for the main pool and a specialized rotational spa lift for an elevated hot tub, for a total project cost of $15,000.
- Step 1: Apply the first $10,250 of eligible expenditure toward Section 44 to potentially secure the maximum $5,000 Disabled Access Credit.
- Step 2: Evaluate whether the remaining $4,750 may qualify as a Section 190 architectural barrier removal deduction to help lower taxable income.
This is where a CPA becomes especially important. The credit, deduction, depreciation strategy, entity structure, and documentation all need to be handled correctly.
Important Fine Print for Commercial Pool Lift Buyers
New Construction May Not Qualify the Same Way
For Section 44, eligible expenditures generally do not include certain barrier-removal expenses connected with a facility first placed in service after November 5, 1990. For new construction or major new-build projects, ask your CPA whether the expense qualifies before assuming the credit applies.
ADA Compliance Depends on Equipment and Installation
The equipment you purchase must be ADA compliant, and the final installation must also meet applicable requirements. Purchasing non-compliant, improperly anchored, or incorrectly installed units may jeopardize both accessibility compliance and tax eligibility.
Swimlifts.com offers commercial ADA-compliant pool lift options from trusted manufacturers, but buyers should confirm that the selected lift, anchoring method, installation location, and final setup meet the applicable ADA and IRS requirements for their facility.
Documentation Matters
Keep detailed records for your project, including line-item invoices, shipping or freight documentation, anchoring hardware, installation labor, concrete core-drilling, electrical work if applicable, and any other accessibility-related expenses. Strong documentation can make the review process easier for your CPA, ownership group, or board approval team.
How to Claim Potential Tax Savings on a Commercial ADA Pool Lift
Use the following steps to help your CPA or tax preparer evaluate the available tax benefits:
1. Document the Project
Keep line-item invoices detailing the pool lift purchase, freight or shipping fees, anchoring components, installation costs, and any related site preparation. The cleaner your documentation, the easier it is for your tax professional to determine which expenses may qualify.
2. Review IRS Form 8826
Eligible small businesses use IRS Form 8826, Disabled Access Credit, to calculate the Section 44 credit. The disabled access credit is part of the general business credit and may be reported through Form 3800, depending on the taxpayer’s filing situation.
3. Evaluate the Section 190 Deduction
For any remaining eligible expenses that are not used for the Section 44 credit, your CPA may evaluate whether those costs can be claimed under Section 190 as qualified architectural barrier removal expenses.
4. Consult a Qualified Tax Professional
This article is for general educational purposes only and should not be treated as tax, legal, or accounting advice. Federal and state tax rules, entity structure, controlled-group rules, depreciation strategy, tax liability, and project-specific facts can all affect eligibility. Always consult a qualified CPA or tax professional before claiming a credit or deduction.
Frequently Asked Questions About ADA Pool Lift Tax Incentives
1. Can a commercial pool lift qualify for a federal tax credit?
A commercial ADA-compliant pool lift may qualify as an eligible access expenditure under IRS Section 44 when purchased by an eligible small business and used to help remove accessibility barriers. The business must meet the IRS eligibility rules, and the expense must satisfy the applicable requirements for the Disabled Access Credit.
2. What is the maximum Disabled Access Credit available under Section 44?
The maximum annual Disabled Access Credit is generally $5,000. The credit is calculated as 50% of eligible access expenditures between $250 and $10,250. Because tax liability, business structure, and other factors can affect the final benefit, businesses should confirm the calculation with a qualified CPA or tax professional.
3. Can larger businesses use Section 44 for a commercial pool lift?
Section 44 is designed for eligible small businesses. Businesses that exceed the gross receipts or full-time employee limits may not qualify for the Disabled Access Credit, but they may still be able to evaluate Section 190, which can provide a deduction for qualified architectural barrier removal expenses.
4. What is the Section 190 architectural barrier removal deduction?
Section 190 allows businesses to deduct up to $15,000 per year for qualified expenses related to removing architectural and transportation barriers. For commercial pool facilities, the purchase and installation of qualifying ADA-compliant pool lift equipment may be reviewed as part of a barrier removal project.
5. Can a business claim both Section 44 and Section 190 for the same pool lift project?
A business may be able to use both incentives on a larger accessibility project, but generally not on the same dollars. Expenses used to claim the Section 44 credit typically cannot also be deducted under Section 190. A CPA can help allocate eligible costs properly.
6. Does buying an ADA-compliant pool lift automatically guarantee tax eligibility?
No. Buying ADA-compliant equipment is important, but tax eligibility can also depend on the business, the facility, the installation, the documentation, and how the expense is treated on the tax return. Buyers should keep detailed invoices and consult a qualified tax professional before claiming a credit or deduction.
Upgrade Your Facility and Protect Your Bottom Line
Investing in accessibility is not just about reducing the risk of non-compliance. It can also be a smart financial move when tax incentives, operational safety, guest experience, and long-term facility planning are considered together.
Ready to make your pool more accessible and easier to approve in the budget? Explore Swimlifts.com’s commercial ADA pool lift options or contact our team for a detailed quote your facility manager, ownership group, or CPA can review.
