Today, the AIA issued the following statement on the Senate Finance Committee draft of the Tax Cuts and Jobs Act. The press release in its entirety follows below:
The AIA today said it was disappointed by the Senate Finance Committee’s proposal for reforming the tax code. As the Committee marks up its legislation this week, the AIA noted that the proposal, like its companion piece in the House, still penalizes professional services companies, including architecture firms, organized as pass-through entities, in effect raising their taxes.
On a positive note, the Senate’s proposal retains the Historic Tax Credit, although it severely curtails its utility. The current 10 percent credit for pre-1936 structures is repealed, while the current 20 percent credit for certified historic structures is halved, to just 10 percent. This is an improvement on the House Ways & Means Committee proposal, but would still have a deeply chilling effect on historic rehabilitation projects. The Senate bill also eliminates tax incentives for energy efficient buildings.