Architects May Qualify for New Income Tax Break

The American Jobs Creation Act of 2004 established a new tax break under the Internal Revenue Code (Section 199), which permits qualifying taxpayers to claim a deduction for, among other things, certain construction and architectural services performed within the United States. For 2005, the deduction is equal to three percent of the lesser of the taxpayer’s taxable income or qualified production activities income as defined in Section 199 of the Code. The percentage increases to six percent for years 2006-2009, and nine percent for 2010 and thereafter.