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
Hotel Facilities | Jul 27, 2023
U.S. hotel construction pipeline remains steady with 5,572 projects in the works
The hotel construction pipeline grew incrementally in Q2 2023 as developers and franchise companies push through short-term challenges while envisioning long-term prospects, according to Lodging Econometrics.
Sustainability | Jul 27, 2023
USGBC warns against building energy code preemptions, rollbacks
In a recent editorial, the USGBC cited a growing number of U.S. state legislators who are “aiming to roll back building energy code standards and/or preempt local governments from advancing energy-efficient building codes.”
Resiliency | Jul 27, 2023
'Underground climate change' can damage building foundations, civil infrastructure
A phenomenon known as “underground climate change” can lead to damage of building foundations and civil infrastructure, according to a researcher at Northwestern University. When the ground gets hotter, it can expand and contract, causing foundations to move and sometimes crack.
Adaptive Reuse | Jul 27, 2023
Number of U.S. adaptive reuse projects jumps to 122,000 from 77,000
The number of adaptive reuse projects in the pipeline grew to a record 122,000 in 2023 from 77,000 registered last year, according to RentCafe’s annual Adaptive Reuse Report. Of the 122,000 apartments currently undergoing conversion, 45,000 are the result of office repurposing, representing 37% of the total, followed by hotels (23% of future projects).
Hotel Facilities | Jul 26, 2023
Hospitality building construction costs for 2023
Data from Gordian breaks down the average cost per square foot for 15-story hotels, restaurants, fast food restaurants, and movie theaters across 10 U.S. cities: Boston, Chicago, Las Vegas, Los Angeles, Miami, New Orleans, New York, Phoenix, Seattle, and Washington, D.C.
Sustainability | Jul 26, 2023
Carbon Neutrality at HKS, with Rand Ekman, Chief Sustainability Officer
Rand Ekman, Chief Sustainability Officer at HKS Inc., discusses the firm's decarbonization strategy and carbon footprint assessment.
Sports and Recreational Facilities | Jul 26, 2023
10 ways public aquatic centers and recreation centers benefit community health
A new report from HMC Architects explores the critical role aquatic centers and recreation centers play in society and how they can make a lasting, positive impact on the people they serve.
Multifamily Housing | Jul 25, 2023
San Francisco seeks proposals for adaptive reuse of underutilized downtown office buildings
The City of San Francisco released a Request For Interest to identify office building conversions that city officials could help expedite with zoning changes, regulatory measures, and financial incentives.
Designers | Jul 25, 2023
The latest 'five in focus' healthcare interior design trends
HMC Architects’ Five in Focus blog series explores the latest trends, ideas, and innovations shaping the future of healthcare design.
Urban Planning | Jul 24, 2023
New York’s new ‘czar of public space’ ramps up pedestrian and bike-friendly projects
Having made considerable strides to make streets more accessible to pedestrians and bikers in recent years, New York City is continuing to build on that momentum. Ya-Ting Liu, the city’s first public realm officer, is shepherding $375 million in funding earmarked for projects intended to make the city more environmentally friendly and boost quality of life.