MIA Supports Home-Products Tax Break
The stone-industry group joined a coalition of trade associations to support HR 3382, also known as the Home Improvements Revitalize the Economy (HIRE) Act of 2009.
The legislation, introduced by Rep. Henry C. “Hank” Johnson Jr. (D-Ga.), would allow income-tax deductions, beginning this year, for certain home-improvement purchases. Consumers would receive deductions, while companies buying materials for resale can apply credits.
The HIRE legislation would cover purchases made from Jan. 1 this year. The deductions/credits would end at the end of 2011.
“The HIRE Act can provide a strong stimulus for the remodeling industry nationwide,” said Gary Distelhorst, executive vice president of the Marble Institute of America. “As a major supporter of the initiative we will work aggressively with other home-improvement industry associations to win passage of legislation that can really impact a badly slumping segment of our economy.”
Under the terms of the proposed legislation, consumers filing joint tax returns could claim a deduction of up to $2,000 ($1,000 for single filers) equal to the cost of qualified home furnishings and building products. (If installation is required, the work needs to be done within six months of purchase to keep the deduction.) Consumers could double the deductable amount with costs directly related to materials meeting green building standards.
Businesses selling to consumers, meanwhile, can apply for tax credits equal to 10 percent of the wholesale cost, with a maximum credit of $10,000.
Non-qualifying purchases include home electronics (televisions, radios, entertainment systems and computers), kitchen appliances, washers and dryers, housewares, decorative items (such as artwork and photographs) and property with value that can be depreciated or amortized.
In addition to the MIA, the American Home Furnishings and Building Products Coalition includes the Adhesive and Sealant Council; American Home Furnishings Alliance; Carpet and Rug Institute; Hardwood Federation; INDA, Association of the Nonwoven Fabrics Industry; International Sleep Products Association; International Wood Products Association; Kitchen Cabinet Manufacturers Association; National Home Furnishings Association; National Paint and Coatings Association; National Wood Flooring Association; Polyurethane Foam Association; Resilient Floor Covering Institute; World Floor Covering Association; and Wood Machinery Manufacturers of America.