Architects, via the venerable AIA, are being asked to call their Senators ASAP.
From their membership wide e-mail on the morning of 3/19:
“URGENT: AIA member call to action for R&D Tax bill
Two urgent dates concerning AIA members are approaching. The first is March 22nd when the Congress must pass a second round of appropriations bills to fund the government and avoid a partial government shutdown. The second is April 15th when federal income tax filings are due.
These two dates are important for action on HR 7024, the Tax Relief for American Families and Workers Act of 2024. This bill can either be added to the government funding bills being considered this week or brought up for a stand-alone vote in the United States Senate. Either result will head to the President, become law, and the IRS can begin to enact its provisions to benefit architects.
AIA National is organizing a call-in campaign to urge the Senate to move forward and pass the bill without further delay. On Wednesday, March 20th, we are asking you to call your Senators and let them know you support the R&D and LIHTC provisions in the bill, briefly explain why these provisions are important to you, ask them to urge their leadership to bring the bill up for a vote, and ask them to vote in favor of the bill without amendments.”
The AIA Federal Affairs Team continues: “There are over 19,000 small, medium, and large architecture firms throughout the US. These businesses employ more than 200,000 individuals. Architects have a professional responsibility to protect the health, safety, and welfare of the public. Investments in research and development are central to the day-to-day work of architects and drive local, regional, and national economies. AIA supports business-friendly tax policies that encourage investment in research and development, incentivize private-sector affordable housing, and ensure tax parity between large and small businesses. If Congress does not enact the Tax Relief for American Families and Workers Act of 2024 (HR 7024), architecture firms of all sizes will face undue restrictions on their ability to innovate, grow, and attract new talent. [***] The 2017 Tax Cuts and Jobs Act (TCJA) requires businesses to amortize R&D costs over 5 or 15 years for domestic and international expenses, respectively. Prior to 2022, these expenses were fully deducted in the year they were incurred. Amortization adversely impacts businesses by increasing costs, negatively impacting employee retention, and new job creation, and limiting future investment in research and development. AIA supports HR 7024 changes that allow tax deductions of R&D expenses in the year incurred.”
The AIA knows these 174 provisions are a doozy, and outlined key aspects for members on its website (PDF here: AIA R&D Changes Overview (Credit/174) ) and stated, in line with Blackland’s stance, that: “It is important to note that the changes to Section 174 requiring amortization of R&D costs apply whether or not the filer also claims an R&D tax credit.”
Architects— call your Senators now. And then call us for R&D services.