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         e-Architect Update
          December 2012
  
In This Issue
Year End Wrap Up
Federal Tax Credit Fee Notice
State IDP Coordinator


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Year End Wrap Up

 

Pete Durantine
Peter Durantine

AIA Pennsylvania ends the 2011-12 legislative session in Harrisburg with some significant accomplishments under its belt, most notably the 25 percent state historic tax credit and a measure limiting business liability, both of which were signed into law.

"We've been very effective in our approach to government affairs," said Robert Keaton, AIA PA's Government Affairs Manager.

After July 1, 2013, developers can use both the existing 20 percent federal historic tax credit along with the newly established 25 percent state credit that is anticipated to help lure investments into Pennsylvania.

The tax credit is expected to help architects acquire more clients as well as help to create more jobs, but it's currently funded at $3 million annually, which AIA is now preparing to push for an increase in what is expected to be a popular program.

The Fair Share Act limits liability of defendants in some civil suits. Under the new law, defendants found less than 60 percent at fault would not, depending on certain conditions, have to pay more than their share of the damages.

The law should lessen the concern of what an architect or architectural firm is actually liable for in projects that have multiple developers, builders and engineers.

While these and other actions - such as softening the impact of the moratorium the Corbett administration placed on new school construction - have helped move the field of architecture forward, the 2013-14 legislative session promises more challenges.

And while the outcome of the presidential election changed little in terms of which party controls the General Assembly - the Republicans still hold the majority in both houses - it does appear the mood is for a moderate approach on issues.

After spending more than a year without taking action on the state's transportation funding needs, GOP Gov. Tom Corbett indicated after the election that he plans to act on the recommendations provided him by his commission. He said he intends to make a proposal in January to fund Pennsylvania's roads, bridges and mass transit systems.

The challenges facing AIA Pennsylvania in the next legislative session will require members to continue working with AIA staff and building relationships with local officials and lawmakers.

"AIA has been effective in reaching our goals, but in order to reach the next level and meet its challenges we need a stronger, unified chapter," Keaton said.

Those challenges include Plan Con; members must let their legislators know the importance of lifting the state's moratorium on new school construction while also helping devise solutions the Corbett administration can use as it considers whether to revamp the program's policies and procedures.

"Architects by nature like to find solutions," Keaton said. "We're solution driven."

AIA wants to mitigate any negative impact changes to the program may have as well as ensure those changes benefit members and their firms.

Expect a return of unqualified people trying to muscle in on the profession: the interior designers with their proposal to change the law to allow them to operate as architects and townhouse builders seeking authority to draft their own home designs. As well, there is likely to be another push to tax architectural services.

AIA is already prepared to fight these attempts, but it needs members talking to their legislators to bolster those efforts.

Other issues in the new session include getting adoption of the 2012 I-Codes, after the UCC Review and Advisory Council voted in January of this year to recommend that Pennsylvania not adopt them.

While RAC made exceptions for Chapter 11 of the IBC, Appendix E of the IBC and the ANSI/ICC A117.1 Standard, the 2009 codes are scheduled to continue in effect until at least 2015 when the RAC must review changes in the 2015 I-Codes.

AIA will continue to advocate for Pennsylvania to adopt the 2012 Triennial Code and to keep pace with the release of new and updated codes.

It's been a good year, but to make 2013 another good one will require member participation in the legislative process.

"Proactive means being a participant in the organization around issues that effect your profession," Keaton said. "A membership organization is only as effective as its members."

Federal Tax Credit Fee Notice

 

For those of you who may be planning Historic Tax Credit projects for 2013 and beyond, please be aware that the National Park Service (NPS) will be increasing the review fees associated with Historic Preservation Certification Applications.  The new review fees will go into effect on December 31, 2012. The Federal Register notice announcing the new fees appears at http://www.gpo.gov/fdsys/pkg/FR-2012-11-30/pdf/2012-29010.pdf   

 

New fees will apply to new project applications received by State Historic Preservation Offices (SHPOs) on or after December 31, 2012.  For Pennsylvania, the SHPO is the Bureau for Historic Preservation.  Part 2 applications received by SHPOs before December 31st will continue to be billed under the current fee schedule, which has been in effect since 1984.  Projects that are currently underway with an approved Part 2 Application, and will also have a Part 3 Application submission at some point in time, will be billed under the current fee schedule.

 

The NPS will post the new fee schedule on the Tax Incentives Program website at: http://www.nps.gov/tps/tax-incentives/app-process/fees.htm along with FAQs.  Please note as of December 4, 2012, the fee schedule has not been updated yet.

State IDP Coordinator

 

The new state coordinator is Sean Sheffler, AIA.  Email him at IDPCoordinator.PA@gmail.com.  Follow him on Twitter (@IDP_PA) or on his blog, InDePth.