December 3, 2017 - The American Institute of Architects (AIA) will lobby aggressively in coming days against significant inequities in both the House and Senate versions of the Tax Cuts and Jobs Act, just as the legislation heads into conference.
The House legislation abolishes the Historic Tax Credit (HTC), vital to the revitalization of America’s city centers and widely hailed as an economic engine since the Reagan Administration put them into place more than three decades ago. The Senate bill eliminates the current 10 percent credit for pre-1936 structures, and significantly dilutes the current 20 percent credit for certified historic structures by spreading it over a five-year period.
The Senate's tax reform bill allows small businesses that are organized as “pass through” companies (i.e. partnerships, sole proprietorships and S-Corporations) to reduce income through a 23 percent deduction. But, like the House-passed bill, the Senate bill totally excludes certain professional services companies - including all but the smallest architecture firms - from tax relief.
AIA 2017 President Thomas Vonier, FAIA, says:
"By weakening the Historic Tax Credits, Congress and the Administration will hurt historic rehabilitation projects all across the country - something to which architects have been committed for decades. Since 1976, the HTCs have generated some $132 billion in private investment, involving nearly 43,000 projects. The Historic Tax Credit is fundamental to maintaining America's architectural heritage.
"Unfortunately, both bills for some reason continue to exclude architects and other small business service professions by name from lower tax rates. There's no public policy reason to do this. Design and construction firms do much more than provide a service; they produce a major component of the nation's gross domestic product and are a major catalyst for job growth.
"Our members across the country are already mobilized to make sure their Congressional delegations know these views. In the coming days, we will spare no effort to make sure members of the House-Senate conference committee know the views of the AIA's more than 90,000 members on the inequities in both pieces of legislation
"We say this again: tax reforms must achieve three basic goals to ensure the vitality of small business and the health, safety and welfare of our communities:
· Preserve tax policies that support and strengthen small businesses.
· Support innovative, economically vibrant, sustainable and resilient buildings and communities.
· Ensure fairness.
"So far, this legislation still falls well short of these goals. If passed, Congress would be making a terrible mistake."
Related Stories
Architects | Feb 8, 2024
LPA President Dan Heinfeld announced retirement
LPA Design Studios announced the upcoming retirement of longtime president Dan Heinfeld, who led the firm’s growth from a small, commercial development-focused architecture studio into a nation-leading integrated design practice setting new standards for performance and design excellence.
Market Data | Feb 7, 2024
New download: BD+C's February 2024 Market Intelligence Report
Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.
Giants 400 | Feb 6, 2024
Top 80 Religious Facility Architecture Firms for 2023
Parkhill, FGM Architects, GFF, Gensler, and HOK top BD+C's ranking of the nation's largest religious facility architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
Modular Building | Feb 6, 2024
Modular fire station allows for possible future reconfigurations
A fire station in Southern California leveraged prefab, modular construction for faster completion and future reconfiguration.
Giants 400 | Feb 5, 2024
Top 30 Entertainment Center, Cineplex, and Theme Park Architecture Firms for 2023
Gensler, JLL, Nelson Worldwide, AO, and Stantec top BD+C's ranking of the nation's largest entertainment center, cineplex, and theme park architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
Urban Planning | Feb 5, 2024
Lessons learned from 70 years of building cities
As Sasaki looks back on 70 years of practice, we’re also looking to the future of cities. While we can’t predict what will be, we do know the needs of cities are as diverse as their scale, climate, economy, governance, and culture.
Giants 400 | Feb 5, 2024
Top 90 Shopping Mall, Big Box Store, and Strip Center Architecture Firms for 2023
Gensler, Arcadis North America, Core States Group, WD Partners, and MBH Architects top BD+C's ranking of the nation's largest shopping mall, big box store, and strip center architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
Laboratories | Feb 5, 2024
DOE selects design-build team for laboratory focused on clean energy innovation
JE Dunn Construction and SmithGroup will construct the 127,000-sf Energy Materials and Processing at Scale (EMAPS) clean energy laboratory in Colorado to create a direct path from lab-scale innovations to pilot-scale production.
Architects | Feb 2, 2024
SRG Partnership joins CannonDesign to form 1,300-person design giant across 18 offices
SRG Partnership, a dynamic architecture, interiors and planning firm with studios in Portland, Oregon, and Seattle, Washington, has joined CannonDesign. This merger represents not only a fusion of businesses but a powerhouse union of two firms committed to making a profound difference through design.
Giants 400 | Feb 1, 2024
Top 90 Restaurant Architecture Firms for 2023
Chipman Design Architecture, WD Partners, Greenberg Farrow, GPD Group, and Core States Group top BD+C's ranking of the nation's largest restaurant architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.