Proposed Tax Credits May Boost Furniture Industry

Posted by MCC on August 8th, 2009 at 05:59pm

Two congressmen from Georgia have filed a bill that would offer several income tax credits and deductions to both consumers and retailors that purchase building products and home furnishings. If passed the bill co-sponsored by Democrat Hank Johnson and Republican Nathan Deal could help boost the failing furniture industry.

Hank Johnson said, “Not only would this bill help stimulate the manufacturing market for home furnishings and building products, it would save and create retail jobs, generate billions in revenue and increase home values at a time when we really need a boost.”

The bill may have a $67 million economic value and would provide tax deductions of as much as $2,000 for families that have incomes of $300,000 or less and buy home furnishings and building products that qualify through December 31, 2011. Consumers would be allowed to claim the deduction even if they don’t itemize any other tax deductions.

For families that have lower yearly incomes, the bill would allow a tax credit of as much as $500. In addition to consumer credits, contractors and retailors that purchase qualifying products for resale would be eligible for a tax credit of 10 percent on the wholesale price. The bill would cap the credits at $10,000 per year.

Under Furniture News