[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.
<all>