Issues & AdvocacyIssues & Advocacy

The Impact of the Stimulus Bill on AIA Member-Owned Firms, IRS Resources for New Hire Incentives Now Available, Colorado Repeals Continuing Competency Bill, and more

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Impact of ARRA on AIA Member-Owned Architecture Firms

In May 2009, the 700 members of the AIA’s Architecture Billings Index (ABI) survey panel were first asked about the impact of the 2009 American Recovery and Reinvestment Act (ARRA, or the federal stimulus bill) on their firm. At that time, when asked about the extent to which the stimulus plan would directly impact business levels at their firm in 2009, just 11 percent rated the impact as high as 4 or 5 on a five-point scale (with “5” signifying a great deal of impact).

While the impact of the bill on AIA member-owned architecture firms has increased in the year since it was enacted, the direct impact on architecture firms remains relatively small. By March 2010 more than one in five AIA member-owned architecture firms reported having received at least some degree of project funding from the stimulus plan, up from 16 percent in the summer of 2009 and just five percent immediately after the program launched in early 2009. Of those firms reporting some funding from stimulus, 16 percent have received funding for projects that are either currently active or have already been completed; three percent have received funding for projects that are under contract, but are currently on hold or inactive; and two percent currently have both active and inactive projects.

An additional 17 percent of architecture firms have received inquiries into potential projects funded by government stimulus funding, but do not have any active projects as yet. If these inquiries were to convert to actual billable projects, many more firms would likely be seeing ARRA projects. And while the share of firms that have not received any project inquiries or actual projects from stimulus funding has declined over the last year, well over half of all firms have still not seen any projects from ARRA. For the full article, click here.

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Get more information on the American Recovery and Reinvestment Act.

Learn more about the current status of the stimulus bill’s funds at www.recovery.gov.

Looking at the stimulus bill: What did it include? (The Washington Post)

AIA Asks Congress to Continue COBRA Subsidy, Provide Relief for Firms

The 2009 stimulus law established a temporary a subsidy to help defray the cost of COBRA health care insurance for unemployed workers. The provision, which provides for the federal government to pay 65 percent of COBRA costs, has been extended several times by Congress. The AIA has urged Congress to keep the subsidy in place for as long as the economic crisis continues.

The AIA is also asking Congress to fix one unintended consequence of the provision, which inadvertently forces companies to shoulder the cost of the subsidy. Under the provision, the beneficiaries’ former employer must pay the full cost of the coverage up front and then obtain reimbursement later from both the insurance company (for the 35 percent paid by the beneficiary) and the government (via a tax subsidy). Several AIA members have expressed a concern that requiring the company to pay the 65% percent government subsidy amounts to an interest-free loan for the government and is a significant burden for firms that have already been forced to layoff employees. The AIA has proposed a solution to the problem that keeps the subsidy intact while removing the financial burden from the company.

Click here to read more about the COBRA subsidy, learn about the details to the AIA’s solution, and find links to contact your members of Congress.

Click here to learn more about the COBRA subsidy’s unintended impact on small businesses.

IRS Makes Resources Available for New Hiring Incentives

The IRS has published new resources for businesses to understand the new payroll tax exemption for hiring certain new workers during 2010, which was created by the recently enacted Hiring Incentives to Restore Employment (HIRE) Act.

Form W-11, the Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit, is now posted on IRS.gov, along with answers to frequently-asked questions about the payroll tax exemption and the related new hire retention credit.

In addition, the IRS has issued a draft form 941, the Employer’s Quarterly Federal Tax Return, to claim the payroll tax exemption for eligible new hires. This form, revised for use beginning with the second calendar quarter of 2010, will be released next month as final along with the form’s instructions.

Visit the IRS website for more information on the HIRE Act.

Export.gov Helps US Firms Export Goods and Services

The National Export Initiative has launched a website to assist the Obama Administration with its goal of doubling exports over the next five years. The site brings together resources from various government entities and is geared to help American businesses better understand the international sales process and overcome hurdles commonly experienced.

The site offers overviews for firms wanting to begin exporting (basics, webinars, information on tariffs); links to various resources including NAFTA certificates, legal resources, etc.; information centers for various international markets, including China and India; trade leads and events; links to government export assistance; financing opportunities and information; and profession specific resources.

Visit www.export.gov for more information.

Take the ENERGY STAR^® Challenge by April 22

The U.S. Environmental Protection Agency’s (EPA) ENERGY STAR Program and the American Institute of Architects (AIA) will once again recognize energy-efficient commercial building projects—and the architects who design them—at the AIA National Convention in Miami. To earn your spot in the ENERGY STAR Gallery, take the ENERGY STAR Challenge by April 22 (Earth Day).

To qualify, visit energystar.gov/targetfinder. Design projects that receive an EPA energy score of 75 or higher could achieve Designed to Earn the ENERGY STAR certification, signifying that they are intended to operate at superior energy efficiency and reduce CO₂ emissions.

For more information, contact buildingdesign@cadmusgroup.com.

Federal Emergency Management Agency Consolidates Map Service Center

On March 1, the contact center for FEMA’s Map Service Center (MSC) was consolidated into the current FEMA Map Assistance Center (FMAC) to provide a one-stop-shop for a variety of information, products, services and tools that support the National Flood Insurance Program (NFIP). The name of the FMAC has now changed to the FEMA Map Information eXchange, or FMIX. For additional information related to the consolidation, please visit the FMIX website.

Colorado “Continuing Competency” Requirements Repealed

On April 5, Colorado Governor Bill Ritter, Jr. (D) signed HB 10-1148 into law, thus rolling back onerous “continuing competency” mandates that set the Centennial State’s architectural licensure regime apart from all other states.

Before the repeal, the provisions suggested that an architect is not competent unless he/she can prove otherwise as a condition of renewal when, in fact, all licensed architects are already considered competent based on education, experience, and examination. Also, evaluation of competence was done by architects themselves, which, by definition, compromised the true value of the evaluation. Finally, the continuing competency provisions nearly tripled the cost of renewing an architectural license at a time when up to 25 percent of Colorado’s architects have reported having no work. All of these requirements were in addition to, and separate from, the state’s existing mandatory continuing education requirements, which will remain in effect.

AIA Colorado fact sheet on HB 10-1148.

For more information, please contact Mark Wills, manager, State Relations.

Minnesota Jobs Bill Passes, Creates Incentives for Development

AIA Minnesota Executive Vice President Beverly Hauschild-Baron (in pink) witnesses Governor Pawlenty (R-MN) signing HF2695 into law. Photo courtesy of the Minnesota Governor’s Office.

On April 1, Minnesota Governor Tim Pawlenty (R) signed HF 2695 into law. The “jobs bill” provides tax credits for historic building renovations and incentives for investment in small businesses. Beverly Hauschild-Baron, executive vice president of AIA Minnesota, co-chaired a coalition – comprised of more than 40 organizations and cities – that worked for two years leading up to the passage of the bill. 

Enactment of this bill marks a victory for design professionals in Minnesota, due in large part to the tax credit for historic building renovation. Studies have shown that tax credits for historic preservation encourage economic development and result in increased business investment in redeveloped areas.

For more information, listen to a podcast with Governor Pawlenty or contact Renée Wadsworth, manager, State Relations.

IGCC Public Version Open for Comments

The Public Version 1.0 of the International Green Construction Code was released March 15. AIA members are strongly encouraged to review the IGCC and offer comments on the code at www.aia.org/igcc. Comments submitted by May 7 will be reviewed and considered by the AIA Codes and Standards Advisory Group and the Committee on the Environment for possible inclusion in the AIA’s formal response to the International Code Council’s code development process.

For more information, contact Mark Wills, manager, State Relations.