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
- AMY N. ANDERSON - Executive Director, PATH Ventures = Friday, February 23 (8am)
- MATT PETERSEN - President & Chief Executive Officer, Los Angeles Cleantech Incubator (LACI) = Friday, March 9 (8am)
- REGINA WAUGH - Executive Director, Los Angeles County Women and Girls Initiative = Thursday, March 29 (8am)
- MONICA RODRIGUEZ - Councilmember - City of Los Angeles, District 7 = Friday, April 20 (8am)
- MILTON S. F. CURRY - Dean & Della & Harry MacDonald Dean’s Chair, USC School of Architecture = Friday, April 27 (8am)
- BECKY DENNISON - Executive Director, Venice Community Housing = Friday, May 4 (8am)
- GARY GERO - Chief Sustainability Officer, County of Los Angeles = Friday, May 18
- JENNIFER FERRO - President, KCRW = Friday, June 1 (8am)
AIA|LA Political Outreach Committee
Tuesday, February 27 (6pm - 8pm)
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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