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In this issue:

Washington Report

• As 112^th Congress Convenes, AIA Issues Agenda Focusing on Creating Jobs in Design and Construction Sector
• Hundreds of Institute Leaders Prepare to Storm Capitol Hill at February Grassroots Conference
• Congress Passes Tax Relief Act, Preventing Tax Increases in January
• IRS Issues New Guidance on Energy Efficient Commercial Building Deduction
• Lame Duck Congress Passes Federal Building Personnel Training Act
• Register Now for 2011 National Healthy Homes Conference
• Park Service Extends Comment Time on Washington Monument Plans

State and Local Update

• SGN Commemorates 20th Anniversary

AIA Members Getting Involved

• Texas, South Atlantic Regions Take First ArchiPAC Regional Challenge Honors

On January 4, the AIA unveiled its top four legislative priorities with the 112^th Congress that convened the following day. Each initiative focuses on creating jobs in a design and construction industry that accounts for one in nine dollars of Gross Domestic Product.

"When architects work, the nation builds," said AIA President Clark Manus, FAIA. "By following these four core principles, Congress has a chance to enact policies that unleash the entrepreneurial spirit of America's design professionals, create economic growth and rebuild our struggling communities and aging infrastructure."

The AIA's top legislative priorities are:

• Unfreeze Credit, Create Jobs: Thousands of needed construction projects that would employ millions of Americans are on hold because credit is frozen. Banks received billions in federal taxpayer bailouts; now it's time to ensure those banks lend. Congress should support efforts to reign in regulatory overkill in the wake of the banking crisis by passing legislation such as the Equal Treatment of Covered Bonds Act, which would create a market for the kind of bond that has been used in Europe for capital projects and is generally more secure than other securitized bonds, like mortgage-backed securities. Advocates say it could unleash a market for sounder, more straightforward financing. The AIA also supports the Capital Access for Main Street Act, which would help prevent large numbers of commercial foreclosures and free up credit to help small business get back to work.

• Regulatory Burdens That Hold Small Business Back: Small architecture firms and sole practitioners know all too well the burdens of high tax rates and burdensome paperwork. In 2010, the AIA helped defeat a plan to increase payroll taxes on thousands of small architecture firms that organize as S corporations. Now Congress needs to pass the Small Business Paperwork Mandate Elimination Act, which would repeal the expensive and unneeded new Form 1099 paperwork requirement slipped into the health care reform bill.

• Jumpstart the Market for Building Retrofits as an Engine of Economic Growth: Across the country, building owners, state and local governments and school districts want to lower energy bills by retrofitting their buildings, but lack the financing to do it. By increasing incentives for efficient building designs and renovations that show real results, Congress can create jobs while securing our energy independence. Congress should increase the Energy Efficient Commercial Building Tax Deduction from the current $1.80sf to $3.00sf.

• Pass a Transportation Bill to Get our Communities Moving Again: Our current transportation system is broken. Crumbling infrastructure and rising congestion have crippled our nation's competitiveness, reduced safety, and increased greenhouse gas emissions. In addition, outdated transportation laws and tax policy have slowed projects down, deprived the public of a voice in the planning process, and forced Americans into longer and longer commutes. The current tax incentives for building/real estate activities do not adequately take into account locating developments near transit systems, for example.

For more information on the AIA's federal agenda, visit www.aia.org/rebuildandrenew.

For additional information, contact Andrew Goldberg, Assoc. AIA, senior director, Federal Relations.

Opportunities for action beyond Washington

The AIA's priorities for the 112^th Congress will guide our federal activities year-round. However, the initial launch of this agenda will be the Grassroots Legislative and Leadership Conference in Washington, DC, in early February. On Thursday, February 3, AIA leaders will go to Capitol Hill to share this agenda with our nation's Congress. Below is information on how AIA members and components can prepare for Capitol Hill Day:

• Up-to-date Capitol Hill Day information: All Capitol Hill Day resources, including sample appointment letters, issues briefs, talking points, and other important information are available at http://www.aia.org/advocacy365.
• Scheduling Capitol Hill appointments: State and local components schedule appointments for Capitol Hill Day, not AIA National staff. Reach out to your state or local component for more information. If you are responsible for making appointments, please visit the Advocacy365 website for resources, and let the AIA National staff know the details of your meetings for the master list.
• Congressional schedule during Grassroots: Please note that, at this time, the U.S. House of Representatives has no votes scheduled during the week of January 31-February 4 and, as such, is expected to be out of session. However, House staff will be available to meet with AIA members and the U.S. Senate is still scheduled to have votes and to be in session.

As always, meeting with members of Congress should not be a once-a-year occurrence. The AIA recommends that AIA members meet with legislators back while they are home for in-district work periods. And now, the House Republicans plan to increase the number of district work periods on the congressional calendar. The next in-district work period is the week of Presidents' Day (February 19-27). We hope that AIA members and components take advantage of these new opportunities by inviting members of Congress to chapter meetings, offices or construction sites, and other functions.

Please let AIA staff know when these appointments or events are scheduled so that they can update you on the status of key AIA issues.

For more information, contact Adam Melis, director, Advocacy Outreach.

Several provisions Included that may help design firms

On December 17, President Obama signed into law the "Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act" (H.R. 4853). Among other provisions, the package would provide for a two-year extension of the 2001 and 2003 tax cuts for all income levels; revive the lapsed estate tax at a rate of 35 percent on estates worth more than $5 million for individuals; extend unemployment insurance benefits for 13 months; and extend certain expiring or expired tax "extenders."  The deal came after a compromise between Congressional Republicans and President Obama, who were at odds over including a tax break for high income individuals and couples.

Most notably, the package did not include a payroll tax increase on architecture and other professional services S corporations that had been proposed as a part of tax legislation earlier in the year and was vociferously opposed by the AIA.

The following are a few provisions from the Tax Relief Act that may be of interest to AIA members:

• Grants in Lieu of Energy Credits Extended: Section 1603 cash grant program rewarding renewable energy property extended through the end of 2011
• Hiring Credits Extended: Work Opportunity Tax Credit of up to $9,000 per eligible new hire has been extended through the end of 2011
• Employment Credits Extended: Empowerment Zone & Renewal Community Tax Credits allow for up to $3,000 in annual tax credits per employee through the end of 2011
• Capital Gain Exclusion Extended: Income exclusion for disposition of qualified property or equity has been extended for acquisitions through the end of 2011 (applies to qualified small businesses and businesses in Renewal Communities and Empowerment Zones)
• Research Tax Credit Extended: Research credits for qualified research activities have been extended through the end of 2011.
• 15-Year Life for Qualified Real Property: Two-year extension allows for qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property to have a 15-year depreciation recovery period through the end of 2011
• Section 45L Energy Efficiency Credits for Multifamily & Residential Developers: Two-year extension allows apartment developers and homebuilders to be eligible for a $2,000 tax credit for every new energy efficient dwelling unit that is leased or sold by the end of 2011

For more information, contact Christina Finkenhofer, manager, Federal Relations.

In a recently-released internal memorandum, the Internal Revenue Service (IRS) confirmed that due to the rules surrounding basis limitations and adjustment, the energy efficient commercial building tax deduction may not be available to some architecture pass-through entities such as S corporations.

The deduction includes a provision that enables architects to claim the deduction directly for their firms. In the case of energy efficiency improvements in a building owned by a federal, state, or local government, the legislation states that "the allocation of the deduction (will be) to the person primarily responsible for designing the property in lieu of the owner of such property."

In 2008, at the AIA's urging, the IRS issued initial guidance on how the deduction could be allocated to the designer. Although this new IRS guidance confirms what the AIA has already highlighted as a critical flaw with the allocation of the deduction, the guidance left the door open to a congressionally-mandated fix.

The AIA has been working behind the scenes for the last year to educate policymakers about this unintended flaw in the deduction. Now that the IRS has implicitly acknowledged that there is room for a fix, the AIA is working to urge Congress to fix the deduction.

For more information, contact Christina Finkenhofer, manager, Federal Relations.

In recent years and at the urging of the AIA, Congress has urged federal agencies to meet stringent goals regarding the reduction of energy and water consumption and greenhouse gas emissions in their buildings. To help the agencies meet these goals, the AIA and a coalition of building industry associations helped pass legislation late last year to ensure federal building personnel have the skills they need to meet these goals

The legislation, S. 3250, also known as the "Federal Buildings Personnel Training Act of 2010," will require the General Services Administration (GSA) to work with other government entities, as well as professional associations like the AIA, to identify core competencies in buildings operations and maintenance, energy management, sustainability, water efficiency, safety, and building performance measures; designate relevant courses, certifications, degrees, licenses, and registrations; and develop a recommended curriculum.

During the lame duck session of Congress in December, over 100 AIA members wrote to their representatives asking them to support the legislation. It was approved by a voice vote in the House and was then sent to President Obama's desk, where he signed it into law December 14. The AIA is now working with GSA to identify existing educational opportunities and to ensure that the proper technical knowledge and training is achieved.

For more information, contact Billie Kaumaya, manager, Federal Regulatory Relations.

Recently, the National Healthy Homes Conference (NHHC) announced an open registration for its 2011 meeting, being held June 20-23 in Denver. The NHHC is a federally-sponsored event bringing together professionals, stakeholders, leaders, and nationally-recognized experts in the health and housing fields to discuss and better coordinate efforts in creating healthy, safe, and green homes and communities.

The NHHC is hosted by the U.S. Department of Housing and Urban Development's Office of Healthy Homes and Lead Hazard Control, in partnership with the U.S. Centers for Disease Control and Prevention, U.S. Department of Energy, U.S. Department of Agriculture, and U.S. Environmental Protection Agency. 

The AIA is a key partner in this initiative and AIA member Sherry Ahrentzen, Associate Director of Research, Policy and Strategic Initiatives at the Stardust Center for Affordable Homes and the Family, represents the AIA on the Conference Advisory Committee.

For more information, contact Billie Kaumaya, manager, Federal Regulatory Relations.

The National Park Service (NPS) is seeking public comment on efforts to replace and improve the existing visitor screening facility at the base of the Washington Monument. On November 8, the NPS hosted an open house and scoping meeting to share information about the project with the public as well as to give opportunities to provide input. To access informational materials presented during that event, click here and then click on "Washington Monument Visitor Screening Facility."

In order to accommodate additional comments, the NPS has extended the public comment period and will accept written comments regarding planning efforts for the proposed project through 11:59 p.m., February 28. The most efficient way to submit public written comments is online via the above link or be e-mailing them to Joni_Gallegos@nps.gov.

For additional information, contact Andrew Goldberg, Assoc. AIA, senior director, Federal Relations.

State advocates to meet in Washington in February, but advocacy efforts must begin now

When the State Government Network was created in 1991, it is unlikely anyone could have foreseen that a stout, but small, group of stalwart architect/advocates could have grown to nearly 200 participants annually and that many "alumni" would go on to lead the AIA on a national level. Two decades hence, the SGN is still seen as a vital part of the AIA's national advocacy strategy.

To celebrate its 20^th anniversary in earnest, the SGN will meet February 1-2 as a precursor to the Grassroots conference. New members will be oriented to the Network and its programs the morning of February 1 (or by a condensed teleconference January 26), and the full membership will meet from mid-day February 1 through mid-day February 2.

This is not to say that members should wait until the first week of February to act. Legislatures in 19 states (California, Connecticut, Illinois, Kentucky, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Rhode Island, Vermont, Wisconsin) are actively meeting this week, and 16 gubernatorial inaugurations (Arizona, California, Connecticut, Idaho, Maine, Massachusetts, Minnesota, Nebraska, Nevada, New Hampshire, Ohio, Rhode Island, Utah, Vermont, Wisconsin, Wyoming) are taking place as well.

The AIA offers resources to make contacting and communicating with legislators, governors, and other officials -- new and old -- an easier process, including an updated "Architect as a Legislative Resource" brochure and templates for corresponding with/congratulating elected officials. To learn more about these resources, please contact AIA State Relations.

For more information, contact Angie Taylor, director, State Relations.

Launched at the beginning of September, the ArchiPAC Regional Challenge concluded December 31 with great results. Raising over $30,500 for ArchiPAC, the AIA's only federal political action committee, the Challenge helped engage more architects in the AIA's advocacy efforts. Texas won the Challenge with $4,498 in contributions, and in so doing, will receive a $1,000 contribution to a charity supporting emerging professionals in architecture. The South Atlantic Region, California, New York, and Illinois rounded out the top five. The South Atlantic Region had the highest participation based on percentage of members participating, so they also will receive an award.

As the 112^th Congress gets sworn in this week, it is important that we have a strong PAC to help us address the many issues facing our profession. A strong ArchiPAC will ensure that architects have the relationships on Capitol Hill to be part of the conversation surrounding this legislation.

To find out how you can get involved with ArchiPAC, from being a champion for your state, spreading advocacy information, and more, contact Hannah Wesolowski, manager, Political Programs.