[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3382 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3382

To amend the Internal Revenue Code of 1986 to encourage individuals to 
    purchase building products and home furnishings, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 29, 2009

 Mr. Johnson of Georgia (for himself, Mr. Deal of Georgia, Mr. Shuler, 
    Mr. Latta, Mr. Clay, Mr. Barrow, Mr. Bishop of Georgia, and Mr. 
  Pascrell) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to encourage individuals to 
    purchase building products and home furnishings, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Improvements Revitalize the 
Economy Act of 2009'' or the ``HIRE Act of 2009''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) the home furnishing and building products market lost 
        $67 billion in direct economic value from 2007 to 2008,
            (2) it is expected to lose another $74 billion from 2008 to 
        2009,
            (3) 273,000 American jobs were lost in 2008 in this sector 
        and 299,000 jobs are expected to be lost in the sector in 2009, 
        and
            (4) temporary, timely, and targeted efforts are necessary 
        to save and create jobs in this sector.

SEC. 3. DEDUCTION FOR PURCHASES OF PERSONAL USE BUILDING PRODUCTS AND 
              HOME FURNISHINGS.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions for individuals) is amended by redesignating section 224 as 
section 225 and by inserting after section 223 the following new 
section:

``SEC. 224. BUILDING PRODUCTS AND HOME FURNISHINGS.

    ``(a) Allowance of Deduction.--In the case of an individual, there 
shall be allowed as a deduction for the taxable year an amount equal to 
the cost paid or incurred during the taxable year by the taxpayer for 
qualified building products and home furnishings.
    ``(b) Maximum Deduction.--
            ``(1) In general.--The amount allowable as a deduction 
        under subsection (a) to the taxpayer for any taxable year shall 
        not exceed $2,000 in the case of a joint return ($1,000 in any 
        other case).
            ``(2) Doubling of limitation for products meeting 
        environmental standards.--
                    ``(A) In general.--In the case of qualified 
                building products and home furnishings which meet 
                recognized environmental standards, the dollar 
                limitation otherwise applicable under paragraph (1) 
                shall be increased by the lesser of--
                            ``(i) such limitation, or
                            ``(ii) the cost of qualified building 
                        products and home furnishings paid or incurred 
                        by the taxpayer during the taxable year for 
                        property meeting such standards.
                    ``(B) Recognized environmental standards.--For 
                purposes of subparagraph (A), the term `recognized 
                environmental standards' means--
                            ``(i) LEED, Green Globes, and Energy Star 
                        standards, and
                            ``(ii) any other widely recognized (or 
                        third-party verified) national or industry 
                        environmental standards having a positive life 
                        cycle analysis.
    ``(c) Adjusted Gross Income Limitation.--
            ``(1) In general.--The dollar limitation applicable under 
        subsection (b) shall be reduced (but not below zero) by the 
        amount which bears the same ratio to such limitation as--
                    ``(A) the excess of--
                            ``(i) the taxpayer's modified adjusted 
                        gross income for such taxable year, over
                            ``(ii) the applicable limitation, bears to
                    ``(B) $10,000 ($20,000 in the case of a joint 
                return).
            ``(2) Applicable limitation.--For purposes of paragraph 
        (1), the applicable limitation is--
                    ``(A) $300,000 in the case of a joint return, and
                    ``(B) $150,000 in any other case.
            ``(3) Modified adjusted gross income.--For purposes of this 
        section, the term `modified adjusted gross income' means 
        adjusted gross income determined--
                    ``(A) without regard to this section and sections 
                199, 911, 931, and 933, and
                    ``(B) after application of sections 86, 135, 137, 
                219, 221, 222, and 469.
            ``(4) Rounding.--Any amount determined under this 
        subsection which is not a multiple of $10 shall be rounded to 
        the next lowest $10.
    ``(d) Qualified Building Products and Home Furnishings.--For 
purposes of this section--
            ``(1) In general.--The term `qualified building products 
        and home furnishings' means--
                    ``(A) any building product which is installed or 
                applied (within 6 months after being purchased by the 
                taxpayer) in or on a dwelling unit located in the 
                United States and owned and used by the taxpayer as the 
                taxpayer's principal residence (within the meaning of 
                section 121), and
                    ``(B) any tangible personal property which is used 
                to furnish such dwelling unit,
        but only if the original use of such product or property begins 
        with the taxpayer.
            ``(2) Exceptions.--Such term shall not include--
                    ``(A) home electronics, including televisions, 
                radios, entertainment systems, and computers,
                    ``(B) home appliances, including refrigerators, 
                ovens, dishwashers, clothes washers and dryers,
                    ``(C) housewares,
                    ``(D) artwork, photographs, and other home 
                decorations, and
                    ``(E) property for which depreciation (or 
                amortization in lieu of depreciation) is allowable.
    ``(e) Cost.--The cost of property taken into account under this 
section shall include labor costs properly allocable to the onsite 
preparation, assembly, application, or original installation of the 
property.
    ``(f) Termination.--This section shall not apply to amounts paid or 
incurred after December 31, 2011.''.
    (b) Deduction Allowed Whether or Not Taxpayer Itemizes Other 
Deductions.--Subsection (a) of section 62 of such Code is amended by 
adding at the end the following new paragraph:
            ``(22) Purchases of building products and home 
        furnishings.--The deduction allowed by section 224.''.
    (c) Conforming Amendments.--
            (1) Sections 86(b)(2)(A), 135(c)(4)(A), 137(b)(3)(A), 
        199(d)(2)(A), 219(g)(3)(A)(ii), and 221(b)(2)(C)(i) of such 
        Code are each amended by inserting ``224,'' after ``222,''.
            (2) Section 222(b)(2)(C) of such Code is amended by 
        striking ``and 933'' and inserting ``933, and 224''.
            (3) Section 469(i)(3)(F)(iii) of such Code is amended by 
        striking ``and 222'' and inserting ``222, and 224''.
            (4) The table of sections for part VII of subchapter B of 
        chapter 1 of such Code is amended by striking the last item and 
        inserting the following new items:

``Sec. 224. Building products and home furnishings.
``Sec. 225. Cross reference.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 4. CREDIT FOR PURCHASES OF PERSONAL USE BUILDING PRODUCTS AND HOME 
              FURNISHINGS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25D the 
following new section:

``SEC. 25E. BUILDING PRODUCTS AND HOME FURNISHINGS.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 20 percent of the cost paid or 
incurred during the taxable year by the taxpayer for qualified building 
products and home furnishings.
    ``(b) Maximum Credit.--
            ``(1) In general.--The amount of credit allowed under this 
        section for the taxable year shall not exceed $500 in the case 
        of a joint return ($250 in any other case).
            ``(2) Doubling of limitation for products meeting 
        environmental standards.--A rule similar to the rule of section 
        224(b)(2) shall apply for purposes of paragraph (1).
    ``(c) Adjusted Gross Income Limitation.--The dollar limitation 
under subsection (b) shall be reduced as provided in section 224(c); 
except that, for purposes of this section, the term `modified adjusted 
gross income' means adjusted gross income determined without regard to 
sections 911, 931, and 933.
    ``(d) Qualified Building Products and Home Furnishings.--For 
purposes of this section, the term `qualified business products and 
home furnishings' has the meaning given to such term by section 224(d).
    ``(e) Coordination With Deduction.--No credit shall be allowed 
under this section for the taxable year to any taxpayer who claims a 
deduction under section 224 for such year.
    ``(f) Cost.--The cost of property taken into account under this 
section shall include labor costs properly allocable to the onsite 
preparation, assembly, application, or original installation of the 
property.
    ``(g) Termination.--This section shall not apply to amounts paid or 
incurred after December 31, 2011.''.
    (b) Clerical Amendment.--The table of sections for such subpart A 
is amended by adding at the end the following new item:

``Sec. 25E. Building products and home furnishings.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 5. REFUNDABLE CREDIT FOR PURCHASES OF BUILDING PRODUCTS AND 
              FURNISHINGS FOR RESALE.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following new section:

``SEC. 45R. PURCHASES OF BUILDING PRODUCTS AND HOME FURNISHINGS FOR 
              RESALE.

    ``(a) In General.--For purposes of section 38, the building 
products and home furnishings for resale credit determined under this 
section for the taxable year is an amount equal to 10 percent of the 
cost paid or incurred by the taxpayer during the taxable year for 
qualified buildings products and home furnishings purchased by the 
taxpayer for resale to customers.
    ``(b) Maximum Credit.--The amount of credit allowable under this 
section to the taxpayer for any taxable year shall not exceed $10,000.
    ``(c) Qualified Building Products and Home Furnishings.--For 
purposes of this section--
            ``(1) In general.--The term `qualified building products 
        and home furnishings' means any tangible personal property of a 
        type--
                    ``(A) used to construct, repair, or improve a 
                personal residence, or
                    ``(B) used primarily within a personal residence.
            ``(2) Exception.--Such term shall not include property 
        described in subparagraph (A), (B), (C), or (D) of section 
        224(d)(2).
    ``(d) Controlled Groups.--For purposes of this section, all persons 
treated as a single employer under subsection (a) or (b) of section 52 
or subsection (m) or (o) of section 414 shall be treated as 1 taxpayer, 
and the dollar limitation in subsection (b) shall be allocated among 
such persons in such manner as the Secretary shall prescribe.
    ``(e) Termination.--This section shall not apply to amounts paid or 
incurred after December 31, 2011.''.
    (b) Credit To Be Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``plus'' at the end of paragraph (34), 
by striking the period at the end of paragraph (35) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(36) the building products and home furnishings for 
        resale credit determined under section 45R(a).''.
    (c) Credit To Be Refundable.--Subsection (c) of section 38 of such 
Code (relating to limitation based on amount of tax) is amended by 
redesignating paragraph (5) as paragraph (6) and by inserting after 
paragraph (4) the following new paragraph:
            ``(5) Special rules for credit for building products and 
        home furnishings for resale.--In the case of the credit 
        determined under section 45R--
                    ``(A) this section and section 39 shall be applied 
                separately with respect to such credit,
                    ``(B) in applying paragraph (1) to such credit--
                            ``(i) the tentative minimum tax shall be 
                        treated as being zero, and
                            ``(ii) the limitation under paragraph (1) 
                        (as modified by subclause (I)) shall be reduced 
                        by the credit allowed under subsection (a) for 
                        the taxable year (other than the credit 
                        determined under section 45R), and
                            ``(iii) the amount of the credit determined 
                        under section 45R in excess of the limitation 
                        under paragraph (1) (as modified by subclause 
                        (II)) shall be treated as a credit under 
                        subpart C.''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45R. Purchases of building products and home furnishings for 
                            resale.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2008.
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