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 Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to encourage 
individuals to purchase building products and home fur-
nishings, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives 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— 
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(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 
FUR-
NISHINGS. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 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 insert-
ing 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 build-
ing products and home furnishings. 
‘‘(b) MAXIMUM DEDUCTION.— 
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‘‘(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 quali-
fied building products and home furnishings 
which meet recognized environmental stand-
ards, 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 in-
curred 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 stand-
ards’ means— 
‘‘(i) LEED, Green Globes, and En-
ergy Star standards, and 
‘‘(ii) any other widely recognized (or 
third-party verified) national or industry 
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environmental standards having a positive 
life cycle analysis. 
‘‘(c) ADJUSTED GROSS INCOME LIMITATION.— 
‘‘(1) IN GENERAL.—The dollar limitation appli-
cable 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 re-
turn, and 
‘‘(B) $150,000 in any other case. 
‘‘(3) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of this section, the term ‘modified ad-
justed gross income’ means adjusted gross income 
determined— 
‘‘(A) without regard to this section and 
sections 199, 911, 931, and 933, and 
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‘‘(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 build-
ing products and home furnishings’ means— 
‘‘(A) any building product which is in-
stalled 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 sec-
tion 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 prop-
erty begins with the taxpayer. 
‘‘(2) EXCEPTIONS.—Such term shall not in-
clude— 
‘‘(A) home electronics, including tele-
visions, radios, entertainment systems, and 
computers, 
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‘‘(B) home appliances, including refrig-
erators, 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 allow-
able. 
‘‘(e) COST.—The cost of property taken into account 
under this section shall include labor costs properly allo-
cable 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 TAX-
PAYER 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 
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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 sub-
chapter 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 BUILD-
ING PRODUCTS AND HOME FURNISHINGS. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter 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: 
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‘‘SEC. 25E. BUILDING PRODUCTS AND HOME FURNISHINGS. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, 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 al-
lowed 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). 
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‘‘(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 allo-
cable 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 BUILD-
ING PRODUCTS AND FURNISHINGS FOR RE-
SALE. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter 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: 
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‘‘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 build-
ings products and home furnishings purchased by the tax-
payer for resale to customers. 
‘‘(b) MAXIMUM CREDIT.—The amount of credit al-
lowable 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 build-
ing products and home furnishings’ means any tan-
gible personal property of a type— 
‘‘(A) used to construct, repair, or improve 
a personal residence, or 
‘‘(B) used primarily within a personal resi-
dence. 
‘‘(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 sub-
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section (a) or (b) of section 52 or subsection (m) or (o) 
of section 414 shall be treated as 1 taxpayer, and the dol-
lar limitation in subsection (b) shall be allocated among 
such persons in such manner as the Secretary shall pre-
scribe. 
‘‘(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 strik-
ing ‘‘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 fur-
nishings 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 BUILD-
ING PRODUCTS AND HOME FURNISHINGS FOR RE-
SALE.—In the case of the credit determined under 
section 45R— 
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‘‘(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 sub-
section (a) for the taxable year (other than 
the credit determined under section 45R), 
and 
‘‘(iii) the amount of the credit deter-
mined under section 45R in excess of the 
limitation under paragraph (1) (as modi-
fied 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 fol-
lowing 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 De-
cember 31, 2008. 
Æ 
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