disabled access credit

[sdtaxman]

If an eligible small business purchases a piece of equipment for $12,000 that is elegible for the maximim credit of $5000 do you need to reduce the basis by the credit before putting on the depreciation schedule. In this case the depreciable basis would end up being $7000. I believe they do need to do this but can't locate the backup.

Any help greatly appreciated.

[JG EA]

Form 8826 instructions talk about this somewhat. Notice the part about:

Denial of double benefit. To the extent of the credit shown on line 6,
the eligible access expenditures may not be claimed as a deduction in
figuring taxable income, capitalized, or used in figuring any other credit.

http://www.irs.gov/pub/irs-pdf/f8826.pdf