On July 29, Congressmen Hank Johnson (D-GA) and Nathan Deal
(R-GA) introduced H.R. 3382, the Home Improvements Revitalize the Economy
(HIRE) Act, which calls for targeted consumer tax incentives for the purchase
of home furnishings such as furniture, flooring, and other home-related
products, as well as building products such as construction adhesives and
sealants. Retailers will also benefit from direct tax credits and increased
sales through this legislation.
“Not only would this bill
help stimulate the manufacturing market for home furnishings and building
products, it would save and create retail jobs, generate billions in revenue
and increase home values at a time when we really need a boost,” Congressman
Johnson said. Congressman Deal added, “The HIRE Act will offer incentives for
consumers who would otherwise forgo spending in 2009 and 2010, allowing them to
improve their homes. And, in turn, jump-start the home furnishings and building
products markets.”
Provisions of the HIRE Act,
which apply to households with income up to $300,000, provide a tax deduction
of $2,000 per family and tax credits of $500 for the purchase of qualified home
furnishings and building products. These credits are doubled for products
meeting certain environmental certifications. Retailers would be eligible for
related tax credits of up to $10,000 under provisions of the bill.
Lawrence D. Sloan, president
of The Adhesive and Sealant Council, Inc. (ASC), praised Congressmen Johnson
and Deal for taking the lead in advancing the HIRE Act in Congress. “As a
result of the housing crisis and the economic downturn, the home furnishings
and building-products industries have been severely impacted,” he said. “In
2007 and 2008, the industries represented by the coalition lost $67 billion in
direct economic value and 273,000 American jobs. If nothing is done, these
industries will lose another $74 billion and 299,000 jobs in 2009. Incentives
for the purchase of home furnishings and building products will help boost the
housing market, help low- and middle-income taxpayers, and directly protect
American manufacturing and retail jobs.”
To read
the HIRE Act, clickhere.