Home Furnishings Tax Incentive Legislation Update

Furniture World News

The International Sleep Products Association (ISPA sent an advisory to its members that Congressman Hank Johnson (D-GA) introduced H.R. 3382, the Home Improvements Revitalize the Economy Act (also known as the HIRE Act). The bipartisan bill will provide consumers and retailers with tax credits and deductions for the purchase of mattresses and other home furnishings. ISPA noted that , "Through the work and lobbying efforts of ISPA, and the American Home Furnishings and Building Products Coalition it created and leads, we have secured this legislation to help mitigate the effect the economic downturn has had on our industry. The HIRE Act provides a number of tools to assist consumers and retailers in buying mattresses." For three years (2009 – 2011), the HIRE Act would: • provide a tax deduction of up to $2,000 per family ($1,000 per individual) for the purchase and/or installation of qualifying home furnishings or building products for families making up to $300,000 a year ($150,000 for individuals) • provide a tax credit of up to $500 per family ($250 per individual) for the purchase and/or installation of qualifying home furnishings or building products for low income families and individuals • provide a tax credit of up to $10,000 for contractors and retailers for the purchase of qualifying home furnishings or building products for resale • provide a doubling of the applicable tax deduction or credit for the purchase and/or installation of qualifying home furnishings or building products which meet recognized environmental standards Critical to our success was the grassroots efforts of ISPA members, which allowed us to secure at least 10 supporters (known as cosponsors) of the HIRE Act prior to its introduction. We thank ISPA members for all the calls and emails that they have made and sent in support of the HIRE Act.