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
Sustainability | Apr 4, 2023
NIBS report: Decarbonizing the U.S. building sector will require massive, coordinated effort
Decarbonizing the building sector will require a massive, strategic, and coordinated effort by the public and private sectors, according to a report by the National Institute of Building Sciences (NIBS).
Education Facilities | Apr 3, 2023
Oklahoma’s Francis Tuttle Technology Center opens academic center for affordable education and training
Oklahoma’s Francis Tuttle Technology Center, which provides career-specific training to adults and high school students, has completed its Francis Tuttle Danforth Campus—a two-story, 155,000-sf academic building. The project aims to fill the growing community’s rising demand for affordable education and training.
Sports and Recreational Facilities | Mar 30, 2023
New University of St. Thomas sports arena will support school's move to Division I athletics
The University of St. Thomas in Saint Paul, Minn., last year became the first Division III institution in the modern NCAA to transition directly to Division I. Plans for a new multipurpose sports arena on campus will support that move.
Warehouses | Mar 29, 2023
Construction completed on Canada’s first multi-story distribution center
Construction was recently completed on Canada’s first major multi-story industrial project, a distribution center in Burnaby, British Columbia. The project provides infrastructure for last-mile delivery in a world where consumers have come to expect next-day and same-day delivery, according to Ware Malcomb, the project's architect of record.
AEC Innovators | Mar 27, 2023
Leading architecture, engineering firm HED appoints new co-CEOs
As children of immigrant families, Van Herle and Suarez will bring a diverse perspective into a historically underrepresented industry and advance the firm’s mission of creating a positive impact for clients, communities, and the world.
Healthcare Facilities | Mar 26, 2023
UC Davis Health opens new eye institute building for eye care, research, and training
UC Davis Health recently marked the opening of the new Ernest E. Tschannen Eye Institute Building and the expansion of the Ambulatory Care Center (ACC). Located in Sacramento, Calif., the Eye Center provides eye care, vision research, and training for specialists and investigators. With the new building, the Eye Center’s vision scientists can increase capacity for clinical trials by 50%.
Libraries | Mar 26, 2023
An abandoned T.J. Maxx is transformed into a new public library in Cincinnati
What was once an abandoned T.J. Maxx store in a shopping center is now a vibrant, inviting public library. The Cincinnati & Hamilton County Public Library (CHPL) has transformed the ghost store into the new Deer Park Library, designed by GBBN.
Multifamily Housing | Mar 24, 2023
Multifamily developers offering new car-free projects in car-centric cities
Cities in the South and Southwest have eased zoning rules with parking space mandates in recent years to allow developers to build new housing with less parking.
Multifamily Housing | Mar 24, 2023
Coastal multifamily developers, owners expect huge jump in insurance costs
In Texas and Florida, where Hurricane Ian caused $50 billion in damage last year, insurance costs are nearly 50% higher than in 2022.
Multifamily Housing | Mar 24, 2023
Average size of new apartments dropped sharply in 2022
The average size of new apartments in 2022 dropped sharply in 2022, as tracked by RentCafe. Across the U.S., the average new apartment size was 887 sf, down 30 sf from 2021, which was the largest year-over-year decrease.