Professional services
In short
Five named licensed professions, and only those five. Excluded on the same contract conditions as design phase services, and not the same deduction as architectural and engineering direct costs.
In full
Professional services is a closed list in the statute rather than a general description. A.R.S. § 42-5075(O)(3) defines it as architect services, engineer services, geologist services, land surveying services or landscape architect services that are within the scope of those services as provided in title 32, chapter 1.
Nothing else qualifies, however professional. Project management, consulting and construction management are not on the list.
The exclusion runs on the same conditions as design phase services: a written contract, executed before modification begins, with terms, conditions and pricing separately stated from construction phase services.
A second condition is inside the definition and is easy to miss. The services qualify only where the gross income has not otherwise been deducted under subsection (L), which covers the actual direct costs of providing architectural or engineering services incorporated in a contract. The same architectural income cannot be taken twice under two provisions.
The two routes have different deduction codes and different scope. Deduction 557 carries the actual direct costs of architectural or engineering services and is available to state and city. Deduction 690 carries design phase and professional services and is not available to cities.
Landscape architect services are professional services under this paragraph. Landscaping as a construction activity is a different subject with a different answer.
A.R.S. § 42-5075(O)(3), (L); A.R.S. title 32, chapter 1; ADOR TPT Deduction Codes listing, updated 2026-08-01