1.This Act may be cited as the
Home Improvements Revitalize the
Economy Act of 2009
or the HIRE Act
of 2009
.
2.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.
3.Deduction for
purchases of personal use building products and home furnishings
(a)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:
224.Building
products and home furnishings
(a)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)
(1)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 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 standardsFor
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)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)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 incomeFor
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)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 furnishingsFor purposes of this
section—
(1)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)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)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)This
section shall not apply to amounts paid or incurred after December 31,
2011.
.
(b)Deduction
allowed whether or not taxpayer itemizes other
deductionsSubsection (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 furnishingsThe deduction allowed by section
224.
.
(c)
(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)The amendments made by this section shall apply to taxable
years beginning after December 31, 2008.
4.Credit for
purchases of personal use building products and home furnishings
(a)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:
25E.Building
products and home furnishings
(a)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)
(1)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 standardsA rule similar to the rule of section
224(b)(2) shall apply for purposes of paragraph (1).
(c)Adjusted gross
income limitationThe 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 furnishingsFor 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 deductionNo 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)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)This
section shall not apply to amounts paid or incurred after December 31,
2011.
.
(b)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)The amendments made by this section shall apply to taxable
years beginning after December 31, 2008.
5.Refundable credit
for purchases of building products and furnishings for resale
(a)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:
45R.Purchases of
building products and home furnishings for resale
(a)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)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 furnishingsFor purposes of this section—
(1)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)Such
term shall not include property described in subparagraph (A), (B), (C), or (D)
of section 224(d)(2).
(d)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)This
section shall not apply to amounts paid or incurred after December 31,
2011.
.
(b)Credit To be
part of general business creditSection 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)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 resaleIn 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)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)The amendments made by this section shall apply to taxable
years ending after December 31, 2008.