I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Home Improvements 

5 Revitalize the Economy Act of 2009’’ or the ‘‘HIRE Act 

6 of 2009’’. 

7 SEC. 2. FINDINGS. 

8 The Congress finds that— 


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1 (1) the home furnishing and building products 

2 market lost $67 billion in direct economic value from 

3 2007 to 2008, 

4 (2) it is expected to lose another $74 billion 

5 from 2008 to 2009, 

6 (3) 273,000 American jobs were lost in 2008 in 

7 this sector and 299,000 jobs are expected to be lost 

8 in the sector in 2009, and 

9 (4) temporary, timely, and targeted efforts are 

10 necessary to save and create jobs in this sector. 

11 SEC. 3. DEDUCTION FOR PURCHASES OF PERSONAL USE 

12 BUILDING PRODUCTS AND HOME FUR13 NISHINGS. 

14 (a) IN GENERAL.—Part VII of subchapter B of chap15 ter 1 of the Internal Revenue Code of 1986 (relating to 

16 additional itemized deductions for individuals) is amended 

17 by redesignating section 224 as section 225 and by insert18 ing after section 223 the following new section: 

19 ‘‘SEC. 224. BUILDING PRODUCTS AND HOME FURNISHINGS. 

20 ‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an 

21 individual, there shall be allowed as a deduction for the 

22 taxable year an amount equal to the cost paid or incurred 

23 during the taxable year by the taxpayer for qualified build24 ing products and home furnishings. 

25 ‘‘(b) MAXIMUM DEDUCTION.— 


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1 ‘‘(1) IN GENERAL.—The amount allowable as a 

2 deduction under subsection (a) to the taxpayer for 

3 any taxable year shall not exceed $2,000 in the case 

4 of a joint return ($1,000 in any other case). 

5 ‘‘(2) DOUBLING OF LIMITATION FOR PRODUCTS

6 MEETING ENVIRONMENTAL STANDARDS.— 

7 ‘‘(A) IN GENERAL.—In the case of quali8 fied building products and home furnishings 

9 which meet recognized environmental stand10 ards, the dollar limitation otherwise applicable 

11 under paragraph (1) shall be increased by the 

12 lesser of— 

13 ‘‘(i) such limitation, or 

14 ‘‘(ii) the cost of qualified building 

15 products and home furnishings paid or in16 curred by the taxpayer during the taxable 

17 year for property meeting such standards. 

18 ‘‘(B) RECOGNIZED ENVIRONMENTAL

19 STANDARDS.—For purposes of subparagraph 

20 (A), the term ‘recognized environmental stand21 ards’ means— 

22 ‘‘(i) LEED, Green Globes, and En23 ergy Star standards, and 

24 ‘‘(ii) any other widely recognized (or 

25 third-party verified) national or industry 


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1 environmental standards having a positive 

2 life cycle analysis. 

3 ‘‘(c) ADJUSTED GROSS INCOME LIMITATION.— 

4 ‘‘(1) IN GENERAL.—The dollar limitation appli5 cable under subsection (b) shall be reduced (but not 

6 below zero) by the amount which bears the same 

7 ratio to such limitation as— 

8 ‘‘(A) the excess of— 

9 ‘‘(i) the taxpayer’s modified adjusted 

10 gross income for such taxable year, over 

11 ‘‘(ii) the applicable limitation, bears to 

12 ‘‘(B) $10,000 ($20,000 in the case of a 

13 joint return). 

14 ‘‘(2) APPLICABLE LIMITATION.—For purposes 

15 of paragraph (1), the applicable limitation is— 

16 ‘‘(A) $300,000 in the case of a joint re17 turn, and 

18 ‘‘(B) $150,000 in any other case. 

19 ‘‘(3) MODIFIED ADJUSTED GROSS INCOME.— 

20 For purposes of this section, the term ‘modified ad21 justed gross income’ means adjusted gross income 

22 determined— 

23 ‘‘(A) without regard to this section and 

24 sections 199, 911, 931, and 933, and 


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1 ‘‘(B) after application of sections 86, 135, 

2 137, 219, 221, 222, and 469. 

3 ‘‘(4) ROUNDING.—Any amount determined 

4 under this subsection which is not a multiple of $10 

5 shall be rounded to the next lowest $10. 

6 ‘‘(d) QUALIFIED BUILDING PRODUCTS AND HOME

7 FURNISHINGS.—For purposes of this section— 

8 ‘‘(1) IN GENERAL.—The term ‘qualified build9 ing products and home furnishings’ means— 

10 ‘‘(A) any building product which is in11 stalled or applied (within 6 months after being 

12 purchased by the taxpayer) in or on a dwelling 

13 unit located in the United States and owned 

14 and used by the taxpayer as the taxpayer’s 

15 principal residence (within the meaning of sec16 tion 121), and 

17 ‘‘(B) any tangible personal property which 

18 is used to furnish such dwelling unit, 

19 but only if the original use of such product or prop20 erty begins with the taxpayer. 

21 ‘‘(2) EXCEPTIONS.—Such term shall not in22 clude— 

23 ‘‘(A) home electronics, including tele24 visions, radios, entertainment systems, and 

25 computers, 


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1 ‘‘(B) home appliances, including refrig2 erators, ovens, dishwashers, clothes washers 

3 and dryers, 

4 ‘‘(C) housewares, 

5 ‘‘(D) artwork, photographs, and other 

6 home decorations, and 

7 ‘‘(E) property for which depreciation (or 

8 amortization in lieu of depreciation) is allow9 able. 

10 ‘‘(e) COST.—The cost of property taken into account 

11 under this section shall include labor costs properly allo12 cable to the onsite preparation, assembly, application, or 

13 original installation of the property. 

14 ‘‘(f) TERMINATION.—This section shall not apply to 

15 amounts paid or incurred after December 31, 2011.’’. 

16 (b) DEDUCTION ALLOWED WHETHER OR NOT TAX17 PAYER ITEMIZES OTHER DEDUCTIONS.—Subsection (a) 

18 of section 62 of such Code is amended by adding at the 

19 end the following new paragraph: 

20 ‘‘(22) PURCHASES OF BUILDING PRODUCTS

21 AND HOME FURNISHINGS.—The deduction allowed 

22 by section 224.’’. 

23 (c) CONFORMING AMENDMENTS.— 

24 (1) Sections 86(b)(2)(A), 135(c)(4)(A), 

25 137(b)(3)(A), 199(d)(2)(A), 219(g)(3)(A)(ii), and 


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1 221(b)(2)(C)(i) of such Code are each amended by 

2 inserting ‘‘224,’’ after ‘‘222,’’. 

3 (2) Section 222(b)(2)(C) of such Code is 

4 amended by striking ‘‘and 933’’ and inserting ‘‘933, 

5 and 224’’. 

6 (3) Section 469(i)(3)(F)(iii) of such Code is 

7 amended by striking ‘‘and 222’’ and inserting ‘‘222, 

8 and 224’’. 

9 (4) The table of sections for part VII of sub10 chapter B of chapter 1 of such Code is amended by 

11 striking the last item and inserting the following 

12 new items: 

‘‘Sec. 224. Building products and home furnishings. 

‘‘Sec. 225. Cross reference.’’. 

13 (d) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to taxable years beginning after 

15 December 31, 2008. 

16 SEC. 4. CREDIT FOR PURCHASES OF PERSONAL USE BUILD17 ING PRODUCTS AND HOME FURNISHINGS. 

18 (a) IN GENERAL.—Subpart A of part IV of sub19 chapter A of chapter 1 of the Internal Revenue Code of 

20 1986 (relating to nonrefundable personal credits) is 

21 amended by inserting after section 25D the following new 

22 section: 


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1 ‘‘SEC. 25E. BUILDING PRODUCTS AND HOME FURNISHINGS. 

2 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in3 dividual, there shall be allowed as a credit against the tax 

4 imposed by this chapter for the taxable year an amount 

5 equal to 20 percent of the cost paid or incurred during 

6 the taxable year by the taxpayer for qualified building 

7 products and home furnishings. 

8 ‘‘(b) MAXIMUM CREDIT.— 

9 ‘‘(1) IN GENERAL.—The amount of credit al10 lowed under this section for the taxable year shall 

11 not exceed $500 in the case of a joint return ($250 

12 in any other case). 

13 ‘‘(2) DOUBLING OF LIMITATION FOR PRODUCTS

14 MEETING ENVIRONMENTAL STANDARDS.—A rule 

15 similar to the rule of section 224(b)(2) shall apply 

16 for purposes of paragraph (1). 

17 ‘‘(c) ADJUSTED GROSS INCOME LIMITATION.—The 

18 dollar limitation under subsection (b) shall be reduced as 

19 provided in section 224(c); except that, for purposes of 

20 this section, the term ‘modified adjusted gross income’ 

21 means adjusted gross income determined without regard 

22 to sections 911, 931, and 933. 

23 ‘‘(d) QUALIFIED BUILDING PRODUCTS AND HOME

24 FURNISHINGS.—For purposes of this section, the term 

25 ‘qualified business products and home furnishings’ has the 

26 meaning given to such term by section 224(d). 


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1 ‘‘(e) COORDINATION WITH DEDUCTION.—No credit 

2 shall be allowed under this section for the taxable year 

3 to any taxpayer who claims a deduction under section 224 

4 for such year. 

5 ‘‘(f) COST.—The cost of property taken into account 

6 under this section shall include labor costs properly allo7 cable to the onsite preparation, assembly, application, or 

8 original installation of the property. 

9 ‘‘(g) TERMINATION.—This section shall not apply to 

10 amounts paid or incurred after December 31, 2011.’’. 

11 (b) CLERICAL AMENDMENT.—The table of sections 

12 for such subpart A is amended by adding at the end the 

13 following new item: 

‘‘Sec. 25E. Building products and home furnishings.’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to taxable years beginning after 

16 December 31, 2008. 

17 SEC. 5. REFUNDABLE CREDIT FOR PURCHASES OF BUILD18 ING PRODUCTS AND FURNISHINGS FOR RE19 SALE. 

20 (a) IN GENERAL.—Subpart D of part IV of sub21 chapter A of chapter 1 of the Internal Revenue Code of 

22 1986 (relating to business related credits) is amended by 

23 adding at the end the following new section: 


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1 ‘‘SEC. 45R. PURCHASES OF BUILDING PRODUCTS AND 

2 HOME FURNISHINGS FOR RESALE. 

3 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

4 building products and home furnishings for resale credit 

5 determined under this section for the taxable year is an 

6 amount equal to 10 percent of the cost paid or incurred 

7 by the taxpayer during the taxable year for qualified build8 ings products and home furnishings purchased by the tax9 payer for resale to customers. 

10 ‘‘(b) MAXIMUM CREDIT.—The amount of credit al11 lowable under this section to the taxpayer for any taxable 

12 year shall not exceed $10,000. 

13 ‘‘(c) QUALIFIED BUILDING PRODUCTS AND HOME

14 FURNISHINGS.—For purposes of this section— 

15 ‘‘(1) IN GENERAL.—The term ‘qualified build16 ing products and home furnishings’ means any tan17 gible personal property of a type— 

18 ‘‘(A) used to construct, repair, or improve 

19 a personal residence, or 

20 ‘‘(B) used primarily within a personal resi21 dence. 

22 ‘‘(2) EXCEPTION.—Such term shall not include 

23 property described in subparagraph (A), (B), (C), or 

24 (D) of section 224(d)(2). 

25 ‘‘(d) CONTROLLED GROUPS.—For purposes of this 

26 section, all persons treated as a single employer under subVerDate Nov 24 2008 06:21 Jul 30, 2009 Jkt 079200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3382.IH H3382

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1 section (a) or (b) of section 52 or subsection (m) or (o) 

2 of section 414 shall be treated as 1 taxpayer, and the dol3 lar limitation in subsection (b) shall be allocated among 

4 such persons in such manner as the Secretary shall pre5 scribe. 

6 ‘‘(e) TERMINATION.—This section shall not apply to 

7 amounts paid or incurred after December 31, 2011.’’. 

8 (b) CREDIT TO BE PART OF GENERAL BUSINESS

9 CREDIT.—Section 38(b) of such Code is amended by strik10 ing ‘‘plus’’ at the end of paragraph (34), by striking the 

11 period at the end of paragraph (35) and inserting ‘‘, plus’’, 

12 and by adding at the end the following new paragraph: 

13 ‘‘(36) the building products and home fur14 nishings for resale credit determined under section 

15 45R(a).’’. 

16 (c) CREDIT TO BE REFUNDABLE.—Subsection (c) of 

17 section 38 of such Code (relating to limitation based on 

18 amount of tax) is amended by redesignating paragraph (5) 

19 as paragraph (6) and by inserting after paragraph (4) the 

20 following new paragraph: 

21 ‘‘(5) SPECIAL RULES FOR CREDIT FOR BUILD22 ING PRODUCTS AND HOME FURNISHINGS FOR RE23 SALE.—In the case of the credit determined under 

24 section 45R— 


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1 ‘‘(A) this section and section 39 shall be 

2 applied separately with respect to such credit, 

3 ‘‘(B) in applying paragraph (1) to such 

4 credit— 

5 ‘‘(i) the tentative minimum tax shall 

6 be treated as being zero, and 

7 ‘‘(ii) the limitation under paragraph 

8 (1) (as modified by subclause (I)) shall be 

9 reduced by the credit allowed under sub10 section (a) for the taxable year (other than 

11 the credit determined under section 45R), 

12 and 

13 ‘‘(iii) the amount of the credit deter14 mined under section 45R in excess of the 

15 limitation under paragraph (1) (as modi16 fied by subclause (II)) shall be treated as 

17 a credit under subpart C.’’. 

18 (d) CLERICAL AMENDMENT.—The table of sections 

19 for subpart D of part IV of subchapter A of chapter 1 

20 of such Code is amended by adding at the end the fol21 lowing new item: 

‘‘Sec. 45R. Purchases of building products and home furnishings for resale.’’. 

22 (e) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to taxable years ending after De24 cember 31, 2008. 

Æ 


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