How a CASp Inspection Can Support Accessibility Compliance and Tax Savings

Key Takeaways

• A Certified Access Specialist (CASp) inspection helps businesses identify potential accessibility barriers and compliance issues.
• Accessibility improvements can create a more inclusive customer experience while reducing legal risk.
• Small businesses may qualify for federal tax incentives that help offset the cost of ADA-related improvements.

Many business owners think about accessibility only when a problem arises. Whether it is a customer complaint, a planned renovation, or a compliance concern, accessibility improvements are often viewed as reactive expenses rather than strategic investments.

CASp Inspections can help organizations identify potential accessibility compliance issues and reduce the risk of disputes — a scenario that is, unfortunately, not uncommon; we have seen long-time businesses close their doors, for good. A CASp inspection offers a proactive approach, helping businesses identify accessibility improvements that may also qualify for valuable tax incentives.

What Is a CASp Inspection?

A Certified Access Specialist is a professional certified by the California Division of the State Architect to evaluate properties for accessibility compliance. CASp-certified inspectors review facilities for compliance with accessibility requirements under the Americans with Disabilities Act (ADA) and California accessibility standards.

Certified inspectors evaluate parking areas, entrances, restrooms, pathways, signage, and other accessibility features throughout a property to identify barriers, prioritize improvements, and document their efforts toward accessibility compliance.

Keep in mind that a CASp can inspect a facility for accessibility compliance, but it cannot certify that the facility itself is compliant. They can only issue a Disability Access Inspection Certificate confirming that an inspection was performed and the required inspection report and schedule are on file. The certificate is not a certification that the facility is compliant.

Why Should Small Businesses Consider a CASp Inspection?

Because CASp inspectors understand which accessibility standards may apply based on a property’s age and improvement history, they can help business owners identify potential issues, prioritize improvements, and document efforts toward accessibility compliance.

Understanding responsibility for accessibility is also an important part of managing the risk. Business owners, tenants, and landlords may all have legal obligations under the ADA and can potentially face accessibility claims. Although a lease may assign certain responsibilities between a tenant and landlord, those contractual provisions do not necessarily eliminate either party’s obligations under the ADA. Addressing accessibility concerns early — ideally before entering into a lease or contract —can help clarify responsibilities and reduce the potential for costly disputes.

In the event of legal action, a qualifying CASp inspection and report may provide the services needed for “Qualified Defendant” status. This is a special legal designation in California that can provide certain protections to business and property owners facing construction-related accessibility lawsuits if they had their building inspected by a state-certified CASp before the lawsuit was filed. Attaining a Qualified Defendant status can provide certain protections if an accessibility claim is filed.

For more information, see the official Division of the State Architect’s page Certified Access Specialist Inspections or find a list of State-certified CASps.

While compliance is often the primary reason businesses pursue a CASp inspection, the benefits extend beyond regulatory requirements.

Having a review can help identify accessibility barriers, support future renovation planning, and document accessibility efforts. It can also help business owners identify improvements that may qualify for tax incentives.

How Accessibility Improvements Create Tax Savings

One potential benefit of accessibility improvements is the opportunity for tax savings. Certain accessibility-related expenses may qualify for federal tax incentives designed to encourage ADA compliance.

Disabled Access Credit: Eligible small businesses may qualify for a federal tax credit for certain expenses related to improving accessibility for individuals with disabilities. Generally, businesses qualify if they have gross receipts of $1 million or less or employ 30 or fewer full-time employees in the preceding taxable year. Qualifying expenses may include accessibility evaluations, equipment modifications, interpreters, readers, and certain physical improvements that improve access for customers and employees with disabilities.

Barrier Removal Tax Deduction: Businesses of all sizes may be eligible for a tax deduction for projects that remove physical barriers to accessibility. Qualifying improvements may include ramps, widened doorways, restroom modifications, accessible parking improvements, and other structural changes designed to improve access for individuals with disabilities and seniors.

Depending on the circumstances, businesses may be able to utilize both the Disabled Access Credit and the Barrier Removal Tax Deduction to help offset the cost of qualifying improvements. However, special tax rules apply when both benefits are used for the same expenses, and the deduction may need to be reduced by the amount of the credit claimed. Coordinating accessibility projects with tax planning can help maximize the value of these incentives.

Opportunities for California Business Owners

California businesses may have access to additional resources, like the California Capital Access Program (CalCAP) Americans with Disabilities Act (CalCAP/ADA) Financing Program, which can help support accessibility-related improvements, such as financing of up to $50,000 for qualifying ADA-related renovations and retrofits. The program also provides credit enhancement to participating lenders, which can help facilitate access to loans and provide flexible loan terms.

Additionally, businesses in certain severely affected communities may qualify for additional credit enhancement. Some cities may also offer local assistance programs. Because these programs have different eligibility requirements, businesses should consult their tax advisor when evaluating available incentives and financing opportunities.

Get in Touch

By proactively coordinating accessibility projects with tax planning, businesses can improve their facilities while reducing the overall cost of those investments. Start by talking to your tax advisor.

Grimbleby Coleman can help evaluate potential tax implications and planning opportunities. Learn more about our Tax Services or contact us to discuss available credits, deductions, financing opportunities, and tax planning strategies related to accessibility improvements.

Frequently Asked Questions