Proposed Bill aims to Boost Home Furnishings Sales
August 10, 2009,
A pair of Congressmen from Georgia have introduced a bipartisan bill calling for tax incentives to encourage consumers purchase products in the home furnishings and building products industries.
Home textiles are not mentioned in the bill, which covers home furnishings that are "tangible personal property" used to furnish a primary residence. It is unclear whether the textiles would be considered among the "other home decorations" which the bill specifies as not covered by the HIRE Act. Also not covered:
Home electronics, including televisions, radios, entertainment systems and computers;Home appliances, including refrigerators, ovens, dishwashers, clothes washers and dryers;Housewares;Artwork, photographs;Property for which depreciation or amortization in lieu of depreciation is allowable.
Households with income up to $300,000, would receive a tax deduction of $2,000 per family and tax credits of $500 for the purchase of qualified home furnishings and building products. Those credits would be doubled for products meeting certain environmental certifications.
Retailers would be eligible for related tax credits of up to $10,000.
"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," said Johnson.
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 market."
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