AIA|LA ADVOCACY REPORT
March 14, 2023
From the desk of Will Wright, Hon. AIA|LA
Director of Government & Public Affairs
Don’t let your firm be burdened with a significant tax liability.
Changes to the tax code have taken effect in 2022 which threaten innovation, valuable building science research, and firm prosperity. Congress has the power to correct this issue, but they need to hear from you.
Previously, businesses that incurred qualified research or experimental expenditures could deduct those expenses within that same taxable year. However, the Tax Cuts and Jobs Act of 2017 included a provision that, starting on December 31, 2021, all R&D expenses must be capitalized and amortized over 5 years (or 15 years for expenses outside the United States). The result may be a significant tax liability increase for firms—even firms who do not take advantage of the R&D credit.
More information is available here.
Please see here to view the letter that AIA delivered to Congressional leadership in December 2022.
Congress needs to address this policy immediately, and we need your help. AIA has been advocating for a retroactive fix for this harmful policy, but Congressional negotiations have stalled. Now is the time to contact your member of Congress and urge them to correct these harmful reforms to the tax code which put design firms at a significant disadvantage and slow innovative building developments.
Send an email asking your Members of Congress to support American building sector innovation and leadership during this Congressional session.
Sincerely,
Kevin M. Holland, FAIA, NOMAC, LEED AP
2023 Government Advocacy Committee Chair
Principal-in-charge, HMC Architects
FOR MORE INFORMATION:
Will Wright, Hon. AIA|LA
Director, Government & Public Affairs
t: 213.639.0764
e: will@aialosangeles.org
www.aialosangeles.org
