Proposed Legislation Would Boost Remodeling Activity With More Tax Credits

Congressman Henry Johnson (D-GA) and Nathan Deal (R-GA) are sponsoring legislation, the Home Improvements Revitalize the Economy (HIRE) Act of 2009, to provide tax credits to stimulate the purchase of kitchen cabinets and other remodeling and home furnishing improvements.
“Not only would this help stimulate the manufacturing market for home furnishings and buildings products, it would save retail jobs, generate billions in revenue and increase home values at the time when we really need a boost,” according to Johnson. “By creating this tax deduction, we will offer incentives for consumers who would otherwise forego spending in 2009 and 2010. We will encourage environmentally sound practices by doubling the benefits for the purchase of building products and home furnishings that meet nationally recognized environmental standards.”
Under the proposed HIRE Act, individual consumers and joint filers would receive respective $2,000 and $4,000 tax credits for purchasing items that meet recognized environmental standards (LEED, NAHB, Green Globes, SFI/FSC and ESP). Retailers, contractors and building product resellers can receive up to $10,000 for covered purchases.
A coalition that includes 14 associations representing kitchen cabinets (Kitchen Cabinet Manufacturers Association) home furnishings, flooring, paint and coatings, carpet and rug, and other interests have joined forces to support passage of the legislation.
“This bill would help everyone in our industry – manufacturing, retail, design and suppliers. The costs would be more than offset by increased economic activity and saved jobs. The incentives cease after three years. This definitely is a pump-priming effort of limited duration and near immediate payback,” according to KCMA Executive Vice President Dick Titus.
A copy of the HIRE Act can be viewed on the KCMA Web Site – www.kcma.org. Supporters are encouraged to contact their congressmen and ask that they co-sponsor the bill.