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AIA headlines this week include:

• Partnerships Drive R/UDAT Success in Newport, Vermont

• Congress Takes First Step Towards Improving Credit Access

• Helping Emerging Professionals Lead

• House Committee Votes to Support Small Business Tax Deduction

In 2009, Newport, Vermont (pop. 5,000) brought a Regional and Urban Design Assistance Team to town to help build a community revitalization strategy. This week, the Center for Communities by Design participated in a panel presentation at the National Main Streets Conference to share lessons from the success of the Newport R/UDAT project. Newport’s reputation as a model has been growing, and an overflow crowd of over 120 participants attended the session.

Patricia Sears, the Executive Director of the Newport Renaissance Corporation, described the town’s dilemma a few years ago. “We were the last city in the state to achieve downtown designation from the state. We had some of the highest unemployment in the state. We decided we were done being last. We decided, ‘we are going to be first.’” In 2009, Newport hosted the first R/UDAT in state history. Hundreds of residents participated in the process. As Mayor Paul Monette said, “it wasn’t the usual political process. Everyone was heard during the R/UDAT.” In 2010, Newport implemented the first form-based code in the state, through an open, participatory community process. They were the first to achieve foreign trade zone designation as well.

The City has undergone a radical shift in its thinking since the R/UDAT. In 2009, the public dialogue was dominated by nostalgia about the city’s past. As one resident exclaimed, “I’ve seen Newport come, and I’ve seen it go.” Last year, the R/UDAT team conducted a follow up visit to assess progress in the community. A citizen described the civic “attitude adjustment” that had occurred: “When you have people working together, things can happen and do happen. That’s the most important change that has occurred – a change in attitude. All of a sudden, nothing is impossible.” Within two years of the project, the R/UDAT had built so much momentum that the town had over $250 million in new and pending investment, including 2,000 new jobs in a town of just 5,000 – an incredible achievement in the midst of a severe national recession.

Newport continues to pursue new things today. This week, the FDA approved a new biotech facility that will be located in the city. The city is also pursuing land value taxation, implementing complete streets, and envisioning a host of new objectives. As Mayor Paul Monette stated, “I attribute our success to the successful R/UDAT in 2009 followed by the great public/private partnerships which have developed.” For more information about the R/UDAT, see the final report or the team’s report from its follow up visit last year.

The Senate voted overwhelmingly on March 27 to pass H.R. 3606, the Jumpstart Our Business Startups (JOBS) Act by a wide margin, following in the footsteps of the House of Representatives a few weeks before and paving the way for the bill to become law by the end of this week.

In one of the few pieces of legislation in the 112^th Congress to garner bipartisan support, the House passed the JOBS Act by a vote of 380-41 and the Senate with a 73-26 vote.

This bill is intended to ease regulatory burdens on firms with revenues of less than $1 billion annually and encourage economic growth by improving access to public capital markets for the specifically defined category of “emerging growth companies,” enabling them to go public sooner and to increase capitalization opportunities. Though the legislation focuses specifically on publicly traded companies, supporters expressed hope that by increasing opportunities for start-ups to grow the entire economy will benefit.

According to House Financial Services Committee Chairman Spencer Bachus (R-AL), "The JOBS Act is a victory for unemployed Americans who are literally crying out for jobs. It is a victory for small companies and for entrepreneurs who want Washington to reduce the red tape that stifles innovation, economic growth, and job creation."

The legislation would promote the evolving financing vehicle known as “crowdfunding,” where companies solicit groups of small investors to spur startups over the internet. This funding mechanism does not require Accredited Investors, and creates funding prospects for small companies in addition to angel investors and venture capitalists, specifically in the early stages of growth. The SEC ultimately will be tasked with specifying the rules and oversight parameters for crowdfunding sites once the legislation is signed into law.

The bill is currently awaiting the Presidents’ signature, which is expected this week. The AIA is currently reviewing the law to determine potential benefits that may exist for architecture firms.

Through the AIA’s 2012 Component Assistance Leadership Grant Program, local components are eligible for up to $2,500 for leadership development programming primarily for emerging professionals.

With over 1,250 civically engaged architects nationwide, this grant program enables architects to pursue leadership roles to help advance public policies that ensure healthy, livable, sustainable, and quality designed built environments for future generations.

Components have until June 15 to submit an application. Applications should include a specific plan, project timeline, and documentation regarding how the grant will be used. Programs that will potentially impact the largest number of members, as well as initiatives that are replicable and that have a long-term benefit to the component, the profession and the community will also receive particular consideration.

For more information, please contact Tatyana Brown.

The House Ways and Means Committee voted last week to send a bill to the House floor that would provide a 20 percent deduction to qualifying small businesses.

Sponsored by House Majority Leader Eric Cantor (R-VA), The Small Business Tax Cut Act (H.R. 9) allows a deduction to businesses with fewer than 500 full-time-equivalent employees equal to 20 percent of qualified domestic business income. The deduction is limited to 50% of the business’ qualifying W-2 wages, and applies to businesses and business owners who pay their taxes at the individual or corporate level.

In a statement released last week, House Ways and Means Committee Chairman Dave Camp (R-MI) praised the committee for its work, stating, “There is no doubt that comprehensive tax reform that lowers rates and makes the code simpler and fairer is key to [helping small businesses to expand their operations and hire new workers].  While we pursue comprehensive tax reform that gives businesses of all sizes the certainty they need to invest and hire for the future, we need something that can help small businesses today.”

Camp added, “The Small Business Tax Cut Act provides the help that small businesses need right now.  This deduction can free up resources so a small business can invest, hire another worker or provide a raise to an employee – something too many employers haven’t been able to do in this weak and slowly recovering economy. Small businesses will be able to take advantage of the deduction immediately in 2012, which can incentivize the job growth we need to help get Americans back to work.”

Although most observers believe this bill will not become law in 2012, it may be a part of broader tax reform that may happen in 2013 or beyond.

Join the Debate on Taxes.
Do you agree with Chairman Camp? Is comprehensive tax reform the best way to help small businesses? Are small business incentives like “The Small Business Tax Cut Act” better for your practice? Are you a large firm that will not benefit from either? The AIA would like to hear from you.

Share your thoughts on LinkedIn today. Simply go to the AIA’s group page and join the discussion.