As most may know, there is a major policy threat looming on Capitol Hill that is already causing significant cash flow problems for engineering firms and creating a disincentive for investment in innovation.
As part of the Tax Cuts and Jobs Act of 2017, Congress changed how taxpayers write off research and development (R&D) expenses. As of January 1, 2022, firms can no longer write off R&D expenses in the year they were incurred and now must amortize those expenses over five years in most cases.
Section 174 of the federal tax code allowed businesses to deduct qualified research expenses in the year those costs were incurred. Congress created the related R&D tax credit in 1981. The amortization of R&D expenses will place the U.S. at a competitive disadvantage to other nations that provide greater incentives for R&D.
An important ACEC Member Action Alert has been distributed to members to urge their representatives and senators to support legislation that would repeal the R&D amortization requirement (H.R. 2673 and S. 866). ACEC also is working with a coalition of business allies to build support to move this repeal legislation forward.
In September, our latest Engineering & Public Works Roadshow celebrated the ACEC Grand Award-winning Able Pump Station in downtown Dallas. The project helps protect residents and businesses from flooding of the Trinity River. The Roadshow highlighted how infrastructure investment can improve the resilience of a community, protect residents, and encourage economic growth.
The cover story of Engineering Inc. presents an analysis of the ongoing nationwide workplace debate and the pros and cons of remote versus in-office work.
This issue also features a breakdown of how climate change is affecting legal standards of care interpretations during contracting. In addition, we profile critical emergency projects that required immediate engineering responses and explain how member firms resourcefully met those challenges.
Jay Wolverton
ACEC Chair
Linda Bauer Darr
ACEC President & CEO