The 10% ITC is designed for "non-historic" buildings built before 1936. (Non-historic refers to buildings not listed on the National Register of Historic Places. Certified historic buildings & buildings in a registered historic district are not eligible for the 10% ITC.) The credit is worth 10% of the amount spent renovating the building. Properties must be depreciable, that is they must be income producing from commercial or industrial uses. Income-producing residential and owner-occupied housing are not eligible. Only the owners (individuals or businesses who have title to the property and pay federal income taxes) can take the credit. 

The amount spent on the renovation project must be greater than the "adjusted basis" (not including land) of the building at the start of the project, or $5000. Owners must designate a 24 month period to complete the project. All interior and exterior work within the framework of the building itself is eligible. Eligible work includes masonry repair, exterior painting, interior remodeling, and mechanical work. Examples of ineligible work include building additions, appliances, furniture, and fixtures. Basic qualifications include: 1. building must have been built before 1936; 2. is used for non-residential rental purposes; 3. has not been physically moved; 4.a.50% or more of the existing external walls are retained in place as external walls,  b. 75% or more of the existing external walls are retained in place as external or internal walls, c.75% or more of the existing internal structural framework is retained in its place.

The credit may be taken by filing the appropriate form with the IRS on the tax return for the year the credit is claimed. Documentation of renovation expenditures must be retained.

The 20% ITC is designed for "historic" buildings (those listed on the National Register of Historic Places or located within a registered historic district). The credit is 20% of the amount spent renovating the building. Properties must be depreciable, that is they must be income producing from commercial, industrial, or residential uses. Owner-occupied housing is not eligible. Only the owners (individuals or businesses who have title to the property and pay federal income taxes) can take the credit. 

Because eligible buildings are historically significant, there are several project requirements for the 20% ITC. The amount spent on the renovation project must be greater that the "adjusted basis" of the building at the start of the project, or a minimum of $5000. Owners have 24 months to complete the project, though owners may qualify for a 60 month phased schedule. All interior and exterior work within the framework of the building itself is eligible. Eligible work includes masonry repair, exterior painting, interior remodeling, and mechanical work. Examples of ineligible work include building additions, appliances, furniture and fixtures. The project also must be reviewed and certified by the National Park Service through the Illinois Historic Preservation Agency (IHPA). Approval of proposed work typically takes from 3 to 6 months.

For certification, the project must meet the Secretary of the Interior's Standards for Rehabilitation. The Standards do not require restoring a building or its features to its original appearance, but  requires the preservation of as much of the existing historic features and materials as possible. Non-historic features may be retained, and new, compatible alterations or additions may be added. Though the credits may be applied for after work has begun and up to 36 months after the project was completed, it is strongly recommended that application be filed before work begins to avoid costly mistakes or possible certification denial.

IHPA works closely with applicants to review the project and devise solutions to any potential problems. IHPA will also answer questions about the credit and about proper preservation techniques and guide the owner through the application process.

The 20% ITC application is divided into three parts. Part I certifies that the building is indeed "historic." Buildings which are listed as contributing to a historic district, are currently being nominated to the National Register, or are listed on approved local designations must have Part I certified. The Part II application describes the work to be done to the building. Most of the proposals are described in written format, though architectural drawings and specifications may be included. Photos of the existing conditions of the building are also submitted. It is recommended that Part II be certified before the construction begins. Part III certifies that the work has been completed, has met the Standards, and lists the value of the renovation. The certified Part III is filed with the IRS form for claiming the tax credit in the year the project is completed.

Title I of the Americans with Disabilities Act of 1990 (ADA) prohibits private employers with 15 or more employees from discriminating against a qualified individual with a disability. To implement this prohibition, the ADA requires that employers provide reasonable accommodations to the known physical or mental limitations of a qualified individual with a disability, unless to do so would impose an undue hardship on the operation of an employer's business.

Two tax incentives are available to businesses to help cover the cost of making access improvements. The first is a tax credit that can be used for architectural adaptations, equipment acquisitions, and services such as sign language interpreters. The second is a tax deduction that can be used for architectural and transportation adaptations.

Internal Revenue Code Section 44 creates a disabled access credit to help small businesses cover ADA-related eligible access expenditures. A business that for the previous tax year had either revenues of $1,000,000 or less or 30 or fewer full-time workers may take advantage of this credit. The amount of the tax credit is equal to 50% of the eligible access expenditures in a year that exceed $250 but are not more than $10,250. Thus, the maximum allowable credit is $5,000. The credit can be used to cover a variety of expenditures including barrier removal, providing interpreters, or providing or modifying equipment. However, the expenses must be associated with required adaptations to existing facilities. The credit is not available for costs of new construction.

The tax deduction, established under Section 190 of the Internal Revenue Code allows a business of any size to expense up to a maximum of $15,000 per year of items that normally must be capitalized (depreciated).  This deduction may be used for expenses associated with the removal of architectural or transportation barriers in association with a trade or business that complies with applicable accessibility standards.

Both the tax credit and the deduction can be used annually.  However, you may not carry over expenses from one year to the next and claim a credit or deduction for a previous year's expense.