Act Now to Restore R&D Tax Credits
AIA and partner organizations have spent months engaging with Congress and the Administration, pressing for a fix to the current requirement that R&D (Research & Development) expenditures be amortized over 5 years. The Tax Relief for American Families and Workers Act of 2024 (HR 7024) was overwhelmingly supported by House Ways and Means Committee members when it was voted out of committee on Friday, January 19th.
A scheduled vote by the full House is imminent, and it will need a two-thirds majority to pass.
The proposed change would allow taxpayers to take the full credit for R&D expenses in the year they are incurred. The provision is retroactive to 2022 and runs through 2025.
Please take a moment to call or email your Representative and urge them to support the tax package that includes the R&D fix. Not sure what to say? It’s easy and will take less than five minutes of your time:
Phone Call Script
I am calling to ask Representative [name] to vote “yes” on H.R. 7024, the tax package that was recently agreed upon by leadership in both the House and Senate. The bill includes an important fix to the current rules for the R&D tax credit that has caused significant financial strain for me/my firm/architectural firms across the country. Some firms have had to institute a hiring freeze or even lay off employees to cut costs so they can afford to pay significantly higher tax bills due to the R&D tax credit rule change. The change is costing us jobs and, in some cases, may cause small businesses to close altogether. Vote YES when the bill comes to the floor. Thank you!
Email to Your Representative
Dear [Rep] [Name],
I’m writing to urge you to VOTE YES on HR 7024: the Tax Relief for American Families and Workers Act of 2024 when it comes to the House floor.
The tax package contains provisions that AIA’s 98,000 architects and design professionals support and care about deeply, which include:
- Restoring the ability of taxpayers to immediately deduct their research and experimental costs paid or incurred during tax years 2021-2025 instead of requiring they be deducted over a five-year period;
- Reinstituting the 12.5% Low-Income Housing Tax Credit ceiling for calendar years 2023-2025 and allowing states to allocate more credits for affordable housing projects; and
- Lowering the tax-exempt bond financing requirement and allowing more buildings to receive the Low-Income Housing Tax Credit
If the House of Representatives doesn’t immediately act to pass HR 7024, the tax liability of architecture firms of all sizes will be dramatically impacted, ultimately limiting their ability to grow and hire talent. Voting YES on HR 7024 will help alleviate the financial strain on small businesses and business owners in your [district/state].
Thank you in advance for your support.
Sincerely,
[AIA Member name]
[AIA Member address]
Not sure how to reach your Representative? This link let’s you search by zip code to find your representative.
Please, help your profession by taking action today!
