AIA|LA Government & Public Affairs Report

From the desk of Will Wright - February 20, 2018

 

TAX REFORM:  a summary of how the tax bill affects architects

 

Late last year, there was a frenzy of confusion (and concern) around the legislative activity of what eventually passed as the Tax Cuts and Jobs Act. Now that the dust has settled a bit, we thought we’d provide access to some of the ways the new tax code impacts architects and architecture firms.  Although at first it seemed that the architecture profession would receive unfavorable and unfair treatment, it turns out that after effective interaction, the profession will be able to utilize the following prospective benefits:

  • Tax-relief for pass-through businesses with a 20% deduction.  Originally, both the House and Senate version of the bill prevented architecture firms from being able to take advantage of this provision, but after extensive lobbying by the AIA architects and engineers were removed from the list of professions prevented from taking this deduction.
  • The Historic Tax Credit.  Originally, the the House proposed to completely eliminate the HTC.  However do to effective outreach from the AIA and other coalition patterns, the final version of the tax bill retains a 20% tax credit for certified historic buildings.  Yet, it has to be pro-rated over five tax years.
  • Energy Efficiency.  Unfortunately, the 179D Deduction for energy efficiency in commercial buildings was left of out the latest tax bill.  As of December 31, 2016, this important deduction has expired. However, AIA is still prioritizing its effort to make sure Congress considers moving forward on tax incentives like 179D
  • Private Activity Bonds.  Any affordable housing projects are financed with tax-exempt bonds.  The original House bill would have eliminated these tax-exemptions, drastically hurting the ability to finance affordable housing.  Fortunately, after much outcry, the final version of the tax bill leaves these exemptions in place.

On January 9, AIA National shared a memo, “TAX REFORM AT THE FINISH LINE”, updating the membership about the recent changes - and what remains the same.

 

More info = TAX REFORM:  A CHART THAT EXPLAINS IT ALL.

 

UPCOMING EVENTS

 

2018 AIA|LA CITY LEADERS BREAKFAST RECEPTIONS:  Presented by PSOMAS

AIA|LA Political Outreach Committee 

Tuesday, February 27 (6pm - 8pm)

HANSON LA

724 South Spring Street

Suite 1002

Los Angeles, California 90014

 

RSVP to WILL@AIALOSANGELES.ORG = LIMITED CAPACITY.

 

POC Leadership:

2018 Chair = Douglas Hanson, AIA, ASID - President, Hanson LA

Past-Chair = D. Rocky Rockefeller, AIA - Senior Partner, Rockefeller Partners Architects

Vice-Chair/ Chair-elect = to be determined (Open to 2018 AIA|LA Board Members….)

 

 

For more information, please contact:

Will Wright, Hon. AIA|LA
Director, Government & Public Affairs
American Institute of Architects/ Los Angeles Chapter
3780 Wilshire Blvd, Suite 701
Los Angeles, CA 90010
(o) (213) 639-0764
will@aialosangeles.org
www.aialosangeles.org
 

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Last updated: 19-Feb-2018 02:10 PM
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