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Tax Credits and Tax Revenue Initiatives of the Assistive Technology Act Projects

Tax credits for purchase of AT are available.

In April 2000, Governor Dirk Kempthorne signed HO750 into law. This legislation established an Individual High-Risk Reinsurance Pool to provide health insurance coverage to high-risk individuals regardless of health status or claims experience. The pool will also receive funds from a diversion of 25 percent of net premium tax funds received above $45,000,000. The legislation continues the current small employer reinsurance mechanism.

SB 1317 protects funds of individuals with developmental disabilities. Signed by Illinois Governor George H. Ryan in June 2000, it applies to counties with property tax caps that have an assessment for funding services for individuals with developmental disabilities. Currently only two counties meet this description, but the number of such counties could grow in the future. The intent of the bill is to protect the funds from being used by the counties for purposes other than for services for individuals with developmental disabilities.

Expanding the state sales tax exemptions. Tax credit for small businesses. Assistive Technology Tax Credit Bill was passed by the Iowa Legislature and signed by the Governor as part of the Omnibus Tax Bill, HF2560. The bill provides a small business tax credit for businesses not required to comply with the ADA. It provides for 50% of the first $5,000 of the cost for purchasing or renting an assistive technology device or making workplace modifications for employees with disabilities. There are approximately 70,000 businesses in Iowa with 20 or fewer employees or approximately 90% of Iowa businesses. Numbers are not available regarding businesses with 14 or fewer employees or gross receipts from the preceding tax year of $3 million or less (noncovered entities under ADA, but covered by this bill).

An issue presently being worked on is technical assistance with tax credits for employers. Forms have been sent to those not familiar with this issue. This past year the state did not act until after tax time. Marketing plans for next year are currently being developed. Forms will be in place for next year, and IPAT is working with vocational rehabilitation (VR) on the marketing plan. There is potential for working with both VR and with the economic development councils in the state.

In FY 1999, the project was working on eliminating the state sales tax on AT.

In FY 2001, for the first time in the state of Kansas, legislation was passed calling for Assistive Technology Individual Development Accounts (IDA). Kansas is the first state to give permission for the use of individualized development accounts. Twenty-nine (29) states have legislation permitting IDAs. Individuals who earn 200 percent of poverty or less, are able to use earned income and save it and match it, on a one to one or greater ratio, for three primary purposes: home ownership; education/training; and micro-enterprise. This program is fashioned after the federal program. Matching donors must be found. Individuals must be developing assets such as AT, as a tool. This permits the individual to save for the AT tool and not have these dollars count against asset determinations. Business and corporate partners must be found to support the matched dollar. The state legislature gave permission for these matched donors. Despite the $200 million shortfall in the state legislature, an extended phase-in has been extended for tax credits to donors. This has also been added as a plank to the Kansas Financial Loan Program application. The federal dollars are available for a match, and only require finding private corporate sponsors for match donors. As private giving is strong this year, it looks good for acquiring private donors.

The project is working on the Homestead Exemption Act (expanding eligibility) definition to include more people with disabilities. The exemption will lessen taxes for homeowners and enhance their ability to afford a home of their own.

A sales tax exemption and tax credit for AT is available.

Eliminate sales tax, use tax on DME, and vehicle modifications.

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The National Assistive Technology Technical Assistance Partnership is a cooperative agreement between the U.S. Department of Education and RESNA. The grant (Grant #H224B050003; CFDA 84.224B) is funded under the Assistive Technology Act of 1998, as amended and administered by the Rehabilitation Services Administration, Office of Special Education and Rehabilitative Services at the U.S. Department of Education.

This website is developed with grant funds. The information contained on these pages does not necessarily reflect the policy or position of the U.S. Department of Education or the Grantee and no official endorsement of the information should be inferred.