AIA urges tax incentive extension

The Energy Efficient Commercial Buildings Tax Deduction, a federal incentive that provides a deduction of $1.80 per square foot for the design and construction of energy efficient commercial buildings, is set to expire at the end of the year. As Congress returns for a crucial four-week period before the November elections, the Washington, D.C.- based American Institute of Architects is strongly encouraging the extension of this deduction beyond 2008. According to AIA, extending tax incentives for commercial construction will provide an immediate stimulus to the design and construction industry. The design and construction industry accounts for nearly one in 10 dollars of U.S. GDP, creates millions of jobs and supports millions of small businesses. “Currently, many developers are reluctant to pursue new commercial projects because of uncertainty over whether federal tax incentives will remain in place beyond this year,” said AIA Vice President, Government and Community Relations, Paul Mendelsohn. “Ensuring that the commercial buildings tax deduction remains in place for years to come will remove this worry, help provide a much needed jolt to the economy and address critical environmental concerns.”