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Some of the Wood Machinery Manufacturers of America’s customers in the furniture and cabinet manufacturing sectors and their customers in the retail home furnishings sector are working on a specific initiative to promote consumer confidence. WMMA urges you to support this initiative by contacting your U.S. representative – please read the details below.

Representative Hank Johnson (D-GA) has developed proposed legislation, the Home Improvements Revitalize the Economy Act of 2009 (HIRE Act), to provide such incentives.

The draft bill 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; and 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.

The bill also has a provision for a tax credit of up to $10,000 for contractors and retailers for the purchase of qualifying home furnishings or building products for resale.

The Case for Action

A coalition of associations, which includes the American Home Furnishings Alliance, the Hardwood Federation, the Kitchen Cabinet Manufacturers Association, and the National Home Furnishings Association, has made the following observations about the need for the bill:

The HIRE Act would provide consumers and businesses tax deductions and credits to offer relief to middle and low income families for the purchase of home furnishings and building products used to improve their homes.

During the current economic downturn, home repairs and upgrades have been dramatically curtailed. This has had a significant impact throughout the U.S economy, and in particular in the home furnishings and building products sectors. These industries have experienced steep declines in sales, job losses, and other financial hardships. The HIRE Act is a temporary, timely, and targeted effort to put money in the hands of consumers and help them improve the value of their homes by incentivizing the purchase of home furnishings. These purchases will also help to save and stimulate the manufacturers, distributors, and retailers of these products.

The home furnishings and building products industries have lost $67 billion in economic value from 2007 to 2008; are expected to lose another $74 billion from 2008 to 2009; have lost 273,000 American jobs in 2008; and are expected to lose 299,000 jobs in 2009.

When a representative develops legislation, it is customary for the representative to circulate what is known as a “Dear Colleague” letter (which is attached here for your review), asking other representatives to co-sponsor the bill. Representative Johnson is now asking others to join him as co-sponsors of the bill.

Contact Your U.S. Representative

You can help the “channel” by contacting your representative and ask him/her to co-sponsor the bill. You can find the name of your representative by going to www.house.gov. A zip code search engine allows you to type in your zip code to find your representative. You can also send an e-mail from that page.

Mail no longer gets through to congressional offices in a timely fashion. Calls, faxes, or emails, in that order, work best. The central congressional switchboard number is 202-225-3121. Ask to be transferred to your representative’s office. Explain that you are a constituent and ask to speak to the representative. If you cannot connect with the representative, ask to speak to a staff person with responsibility for business or tax issues. Explain that you would like to discuss the nature of your business and the need for such incentives. Tell whomever you speak to about representative Hank Johnson’s (D-GA) bill. Ask for the sale – ask your representative to co-sponsor the bill.

If you do not talk with someone with policy responsibility, at a minimum explain you are a constituent and that you would like their fax number. Send a letter on company letterhead. If you send an email, always identify yourself as a constituent and give your zip code.

Representative Johnson said in the letter to his colleagues:

The HIRE Act would re-attract many households into the market that would otherwise forgo spending in 2009 and 2010, stimulating the manufacturing market for these products, improving the flow of capital, helping low and middle-income taxpayers, and directly protecting American manufacturing, retail and contractor jobs.

Great words to read!

Please share copies of your correspondence or reports of your calls with WMMA by emailing info@wmma.org. We would appreciate any report on the results of your efforts.