Brady's November Newsletter: Post Election, and Insights from Industry Leaders

As we find ourselves entering the final stretch of 2024, November it's a great time to reflect on our accomplishments and set our sights on the opportunities that lie ahead. At BRAYN, we’re always looking for ways to innovate and grow, and the next couple of months are no different.

 In this newsletter you can find that I recently had the pleasure of sitting down with Alexander Cochran, Chief Advocacy Officer at the American Institute of Architects (AIA), to discuss critical tax policies shaping the architecture and construction industries. Together, we explored legislative updates, advocacy efforts, and shared practical advice for architectural firms navigating today’s tax landscape. These conversations are invaluable as we continue helping our clients stay ahead in an ever-changing industry.

Additionally, as conference season winds down, it’s a great reminder of the incredible networking opportunities these events provide. Whether you’re attending to gain insights, expand your network, or find new opportunities, the impact of these conferences can’t be overstated.

It’s been a fantastic season of conferences, and our BRAYNiacs have been traveling coast-to-coast to connect, learn, and share ideas. But the fun isn’t over yet—there’s one more stop on the horizon. We’re heading to San Diego and Las Vegas for the last big events of the season, and we couldn’t be more excited. It’s the perfect way to close out the year, with plenty of opportunities to network, discuss the latest trends, and share insights on how to drive growth and innovation in the consulting and tax sectors.

I also want to offer a 50% off discount code for the next Western CPE Events. If you’re looking for more opportunities to learn and grow in 2024, reach out to me for the code. I’m happy to share it with you here.

As for my personal travels, I will be in the following cities. Please reach out to me if you would like to connect while I am in town.

This week we are in San Diego, from November 18 - 22, 2024

🍹 BRAYN Happy Hours:

🗓️Date: Wednesday, November 20, 2024

🕓Time:4 PM - 7 PM

📍Location: Covewood Bar and Restaurant at the Mission Bay Resort

Come enjoy some drinks, great conversation, and network with fellow professionals. Please RSVP by emailing me (brady@brayn.com) which event you will be attending.

On October 20th, we will be presenting on these powerful tax incentives at the Western CPE Conference (6 hours' worth of CPE for our class) at the San Diego Mission Bay Resort.

🎤 Western CPE Conference:

Presentation on Business Empowerment Tax Incentives

🗓️ Date: Wednesday November 20, 2024 at San Diego Mission Bay Resort - Western CPE Conference

🕒 Time: 7:30 AM - 1:00 PM for SIX HOURS of CPE

📍 Location:  San Diego Mission Bay Resort

Special Offer: Contact me for 50% off your registration fee. (https://www.westerncpe.com/conference/san-diego-ca-november-2024/)

Or go to: www.westerncpe.com and use the code BRAYN to get a big discount to attend the conference Wednesday.

 

We are coming to Las Vegas!

 

Also, BRAYN will be in Las Vegas hosting events around the AICPA & CIMA Construction & Real Estate Conference from December 9 - 11, 2024, at Caesars Palace, Las Vegas. Let's connect if you are in any of these places!

Private Golf Outing with Brady at Southern Highlands Golf Course on Thursday Dec 12th. Reach out to me if interested!

Navigating the Complexities of Tax Legislation: Insights from Industry Leaders

 

In a recent thought-provoking discussion, Alexander Cochran, Chief Advocacy Officer at the American Institute of Architects (AIA), and I explored critical tax policies shaping the architecture and construction industries. Their insights covered legislative updates, advocacy efforts, and practical advice for architectural firms navigating today’s tax landscape.

 

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Alexander Cochran, Esq.

Chief Advocacy Officer, AIA

Alexander Cochran brings 25 years of government relations expertise to AIA. Formerly Special Counsel to the Governor of New York State, he has championed federal legislative priorities and spearheaded initiatives like the U.S. Climate Alliance. His extensive experience includes roles in corporate and government strategy, advocating for sustainable and community-focused policies.

 

 

 

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Key Tax Policies for the Architecture Industry

 

R&D Tax Credit

 

Cochran highlighted the potential of the R&D Tax Credit for architecture firms engaged in innovation through design, engineering, and sustainable building solutions. “For many architects, claiming the R&D credit can make a significant difference,” he said, “especially when it covers efforts in design, prototyping, or use of innovative building materials.” He noted AIA's advocacy to expand the credit's applicability and to simplify its eligibility criteria. Cochran stated, “AIA is urging Congress to increase the R&D credit rate for small and medium-sized firms, broaden eligible activities, and extend coverage to critical tools like BIM software.”

 

R&D Expensing

 

Expanding on the financial benefits, Cochran pointed to R&D expenses as another valuable tool. “Immediate expense of R&D costs can aid cash flow, which is vital for firms investing in new design technologies,” he explained. AIA is requesting that Congress allow architectural firms to expense all R&D-related costs immediately, including expenses tied to sustainable design training, enhancing firms’ ability to innovate in line with environmental goals.

 

199A Pass-Through Deduction

 

Section 199A, which provides a deduction on qualified business income, is another area where the AIA sees potential for expanded benefits. “Most architectural firms are pass-through entities and benefit from this deduction, yet higher-income firms often face limitations,” Cochran said. AIA is calling on Congress to increase income thresholds for eligibility and to make this deduction permanent, reducing uncertainty and allowing firms to plan for long-term tax savings, particularly when working on projects that support public welfare.

 

Low-Income Housing and Workforce Housing Tax Credits

 

Cochran also underscored the role of the Low-Income Housing Tax Credit (LIHTC) and Workforce Housing Tax Credit in promoting affordable housing. “These credits drive opportunities for architectural firms by supporting projects that serve communities in need,” he explained. AIA is advocating for increased funding and a new Workforce Housing Tax Credit program, which could directly benefit architectural firms involved in affordable housing design through direct grants or credits.

 

179D Energy-Efficient Building Deduction

 

The 179D deduction supports sustainable design by incentivizing energy-efficient buildings. Cochran emphasized that this deduction is crucial for architects focused on sustainability. “Our position at AIA is that increasing the deduction amount and allowing it to be claimed on multiple upgrades would incentivize ongoing improvements,” he said. AIA further recommends simplifying the allocation process for design firms on government projects, helping smaller firms access this important tax benefit.

 

Small Business Tax Challenges

 

Recognizing that small firms face unique tax challenges, Cochran discussed the need for clearer IRS auditing guidelines tailored to architecture. “Architecture firms often face audit issues related to revenue recognition and expenses for design software and tools,” he noted. The AIA is requesting that Congress direct the IRS to provide clearer guidelines and expand safe harbor provisions to reduce audit frequency and administrative burden for small architecture firms.

 

Historic Tax Credit (HTC)

 

Lastly, Cochran highlighted the value of the Historic Tax Credit for firms involved in preserving and adapting historic structures. “This credit makes historic preservation projects more feasible for clients, which benefits architecture firms specializing in this area,” he explained. AIA’s recommendations include increasing the HTC percentage for community-focused projects and simplifying compliance, with a goal to encourage more firms to undertake historic preservation work.

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This conversation highlighted the shared commitment between Alexander Cochran and me to support architectural innovation and financial sustainability through well-crafted tax policies. His expertise and advocacy efforts are driving meaningful progress, ensuring that firms have the tools they need to design for the future while fostering economic growth and community well-being.

Welcoming New Talent to the Team

This month, we’re thrilled to welcome Hailey Pinzone to our team. With over a decade of experience in client relations, Hailey brings a wealth of knowledge and a fresh perspective to our consulting services. Her passion for environmental sustainability and deep expertise in managing high-level client relationships make her a perfect fit for our growing team. We’re excited to see how her leadership and energy will elevate our work as we continue to expand and diversify our services.

We’re also thrilled to have Joe as our new Principal Consultant. With an impressive background as a Tax Partner leading the Tax Incentives & Credits Department at one of Utah’s largest accounting firms, Joe brings a wealth of corporate tax and incentives expertise across industries like tech, real estate, and manufacturing. Welcome aboard, Joe!

 

Celebrating BRAYN Won the Second Annual Sam Houston 79 Award!

We celebrated an exciting milestone as BRAYN was honored with the prestigious Second Annual Sam Houston 79 Award. This award, named in honor of the founding of Sam Houston State University (SHSU) in 1879, recognizes exceptional businesses for their compound annual growth in revenues over a three-year period. The award ceremony was a remarkable evening filled with industry leaders and professionals, all gathered to celebrate the outstanding achievements in the consulting and business sectors. The night featured speeches from distinguished guests, networking opportunities, and a sense of camaraderie as BRAYN’s achievements were recognized.

The award reflects not only BRAYN’s success in driving innovation in tax and fiscal strategies but also its rapid growth and impact on the industry. As we reflect on this incredible honor, we are reminded of the hard work, collaboration, and dedication that has contributed to our success.

From Coast to Coast!

November has been a whirlwind of travel, learning, and networking – and let me tell you, it’s been a blast (in a very professional way, of course)! From coast to coast, I’ve had the privilege of visiting some fantastic cities and connecting with incredible people along the way.

After a beautiful stop in Boston, we had an exciting stop in Las Vegas! Who knew consulting and tax incentives could be so exciting? (Yes, I’m talking about taxes in Vegas!). Huge thanks to everyone who joined the session and made it a memorable one.

The month kicked off with an exciting stop in Tempe, Arizona, where I had the opportunity to join a great group of tax and consulting professionals. It wasn’t just about the beautiful Arizona sunshine – the discussions and presentations at the event were packed with insights on how the industry is evolving, particularly in construction and tax strategy. The community in Tempe is vibrant and eager to learn, which made for some incredibly valuable connections.

From Tempe, it was off to the stunning islands of Hawaii. I mean, who can complain about mixing work and paradise? The event in Maui was nothing short of incredible, with conferences focused on maximizing tax incentives for businesses in sectors like construction, real estate, and sustainable practices. While the surroundings were beautiful, the real highlight was the opportunity to meet and collaborate with like-minded professionals who shared innovative approaches to tax planning and financial strategy. And let’s not forget the networking – where, yes, we may have swapped tax tips along with a few local seafood recommendations!

Next, I made my way to the hustle and bustle of New York City, where the energy of the Big Apple matched the intensity of the conference topics on offer. From discussions on the latest tax reforms to strategic insights on global business expansion, NYC brought together thought leaders from all over. The pace was fast, but the connections I made were invaluable!

This week I am in San Diego! Come enjoy some drinks, great conversation, and network with fellow professionals. Please RSVP by emailing me (brady@brayn.com) which event you will be attending.

On November 20, we will be presenting on these powerful tax incentives at the Western CPE Conference (6 hours' worth of CPE for our class) at the San Diego Mission Bay Resort.

Looking Ahead

Looking ahead, I’m gearing up for Las Vegas again to showdown in December – the final stop of this fall conference season. After all the incredible events this month, I can’t think of a better place to cap off the season. There’s no doubt that Las Vegas will bring its own brand of energy and excitement, and I’m looking forward to the chance to connect with even more professionals before the year wraps up. You can book Las Vegas´s CPE Conference right here.

It's been a month full of learning, meeting amazing professionals, and making memories. If you’re in any of these cities or will be soon, let’s connect! Whether it's for a quick coffee or a full-on strategy session, I’d love to hear what’s new in your world.

With two final conferences under our belts, we’re all set to enter a new season of opportunity. Stay tuned for exciting updates from Bryan Consulting, including new partnerships, initiatives, and projects we’re rolling out in the coming months.

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About Brady and Hercules

179D Energy Efficient Commercial Building Tax Deduction Explainer video (click here)

Brady is the founder and CEO of BRAYN Consulting LLC, a consulting firm in the US with over 50 employees. Additionally, he is the founder and CEO of HPCE SAS, an Ecuador-based company providing nearshoring talent solutions to North American businesses. He is also the author of the book "The Millionaires You Went To High School With: Uncommon Wealth from Common People." https://a.co/d/1B9c6lW

Hercules is a French Bulldog living in Las Vegas. His ideal day starts at 5:30am with 30 minutes playing ball, followed by a daily car ride and then a morning walk. He loves hanging out, snoozing and doing zoomies with his brother, Thor. During the day Herc can often be found warming himself and relaxing in a sun patch.

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IRS Circular 230 Disclosure – To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.