Each year the American Institute of Architects hold an annual advocacy event where nearly 400 members visit Capitol Hill to meet with lawmakers and discuss important legislative issues related to the architecture profession. This takes place during the AIA Leadership Summit, typically held in February.
There was a full agenda this year with carefully crafted language and resources to increase effectiveness. New this year was an on-demand session to prepare individuals for advocacy issues. This year’s legislative talking points have some similar issues from last year but also include new points related to housing and resilience. If you weren’t able to attend Hill Day, you can still write to your state’s Congress members to advocate for these important issues.
Design Freedom for Federal Architecture
The AIA had been battling this issue since 2020 and this will continue to be an issue for our profession. The White House has requested to review the GSA’s Guiding Principles for Federal Architecture and based upon past actions, it is likely that the current administration will re-instate an executive order for an official preference for classical and traditional architecture for federal buildings over $50 million. Architecture should not be utilized as a propaganda tool for political power, control, and superiority. It should work to serve and be for its communities. AIA supports freedom in design and local communities controlling design preferences.
Arbitrary Fee Limitations for Federal Contracts
This talking point carries over from 2024 but has evolved. Basically, there is a 6% fee limitation for A/E services on federal projects which was introduced in 1939. This has not been updated to meet expanded services and increased demands for projects. In 2011, Congress clarified that the 6% fee cap was for cost-plus-fixed-fee contracts but it continues to be mis-used on other contract types such as firm-price fixed fees. In 2024 Congress increased the A/E fee limitation for defense contracts to 10%, which demonstrates an acknowledgement of the outdated nature of the 6% cap.
AIA supports A/E fees being updated across all federal civilian and defense departments and contracts and eliminating arbitrary caps to support greater competition and effective procurement.
Architects Support More Housing
AIA advocates for federal policies to address the housing crisis, highlighting the essential role architects play in designing safe, affordable, and resilient communities.
The AIA emphasizes the need for Congress to support initiatives that increase affordable housing supply and foster innovative solutions.
A recent National Housing Survey by the U.S. Conference of Mayors and AIA reveals strong support among mayors for expanding federal housing programs like the HOME Investment Partnership Program, Community Development Block Grants, and the Low-Income Housing Tax Credit, all deemed vital for cities.
Architects Support Community Resilience
Natural disasters pose a growing threat to U.S. communities, resulting in over $350 billion in damages in 2024. Federal programs like FEMA’s Hazard Mitigation Assistance Grant programs—specifically the Flood Mitigation Assistance (FMA) and Building Resilient Infrastructure and Communities (BRIC)—are crucial for community resilience but are often underfunded.
Architects play a key role in this by leveraging their design and innovation expertise for disaster preparedness. To enhance community resilience, Congress should fully fund FEMA programs, reintroduce the Resilient AMERICA Act, and enact the Shelter Act, ensuring that communities are better prepared for future challenges.
Tax Incentives for Architects
There are a few key tax issues affecting architects that are being advocated for. AIA supports tax policies that encourage research and development, incentivize affordable housing in the private sector, and ensure fair tax treatment for both large and small businesses.
- R&D Tax Credit: This tax credit offers savings for companies investing in innovation, applicable to architects involved in design, prototyping, and process improvements. The request is for clearer eligibility criteria that explicitly include design innovations and to extend the credit to cover initial concept development and BIM software costs.
- R&D Expensing: This allows businesses to deduct R&D expenses in the year they are incurred, which is beneficial for firms making upfront technology investments. The request is to allow architectural firms to expense all R&D-related costs immediately and to include training costs for new technologies and design software.
- 199A Pass-Through Deduction: Section 199A provides a 20% deduction on qualified business income for pass-through entities, helping architectural firms remain competitive. The request is to renew this policy without changes, ensuring architecture and engineering firms are not classified as service industries with income limitations that would reduce the deduction.
- Low-Income Housing Tax Credit (LIHTC) & Workforce Housing Tax Credit: The Low-Income Housing Tax Credit (LIHTC) and the proposed Workforce Housing Tax Credit are vital incentives for affordable housing development. Congress should increase LIHTC funding, establish a federal Workforce Housing Tax Credit, and allow architectural firms to benefit from tax credits or grants for their design services on affordable housing.
- 179D Energy-Efficient Commercial Buildings Deduction: Architecture firms that design energy-efficient commercial buildings can claim this deduction, making it a valuable tool for promoting sustainable design. To enhance its effectiveness, it is proposed that Congress extend eligibility to architectural firms consulting on retrofits and updates for existing buildings, including public and non-profit projects. Additionally, a more streamlined process for allocating deductions to design firms on government projects should be implemented, improving access for smaller firms and allowing the deduction to be claimed multiple times for substantial upgrades to the same building.
- Historic Tax Credit (HTC): HTC incentivizes the rehabilitation of historic buildings, promoting preservation and adaptive reuse. Oversubscribed and highly valued by local communities, the HTC is crucial for architectural firms specializing in these projects, expanding their business opportunities and preserving cultural significance in cities. It is proposed that Congress increase the HTC percentage for smaller community-based projects to encourage more of this type of work.
If you would like more information on how you can get active at the state or local level, please reach out to get plugged into the Architects I Action Network.
If you or your state/local COTE chapter have been finding good ways to plug into advocacy at the local or state level, we'd love to learn what's working. And possibly share those lessons in COTE news or other ways. Let us know what you are up to at cote@aia.org
Joyce Raybuck, AIA, LEED AP is a Principal at BNIM in Kansas City. With two decades of experience, she is a collaborative design leader who produces research informed, human-centered projects from concept through construction. Her background includes national and international experience on innovative projects in higher education, embassy design, workplace and urban development. Joyce currently serves on the COTE Leadership Group.