Incentives and Cash Savings for Architecture Firms and their Owners

Join us for Tri-State Programing for 2025!
Wednesday, February 5th | 12:00pm

Register Now

About this Course
According to the Internal Revenue Service, building owners who place in service energy efficient commercial building property (EECBP) or energy efficient commercial building retrofit property (EEBRP) may be able to claim a tax deduction. The deduction is allowed under Internal Revenue Code (IRC) Section 179D and was expanded under the Inflation Reduction Act of 2022. Beginning January 1, 2023, the deduction is available to owners of qualified commercial buildings, not just those owned by government entities. Most notably, the designers (i.e. architects and other design professionals) can claim the tax deduction of EECBP/EEBRP if they are installed in buildings owned by specified government or tax-exempt entities since those entities have no tax liability. In this session, the details of this significant tax deduction are explored as ways to help owners of design firms reduce or eliminate their federal income tax liability. Relatedly, the Research and Development (R&D) income tax credit remains a potent tool for firm owners to use that can mitigate the impact of amortization requirements. This tool is discussed and reviewed as well.

Learning Objectives:

1. Recognize how a design firm or owners may qualify and may benefit this year from the new building energy efficiency incentive, IRS 179D Deduction, when working in the Education, Government and non-profit sector.
2. Explore the decision to claim the R&D tax credit, understanding the mandatory requirements of the expense amortization for Architecture Firms.
3. Compare individual tax situations to real life case studies of architecture firms of all sizes in the PA/NY/NJ region benefitting from IRS tax deductions and credits.
4. Discuss concrete actions with Certified Public Accountants (CPA) for optimizing tax savings in the next five years.

Credits: 1 AIA LU