Home Improvement Tax Credit to Help Middle-Class Families and Boost the Economy
NEW YORK, N.Y. – A coalition of leading associations and businesses across the home improvement, roofing manufacturing, and construction industries, led by the Co-CEOs of Standard Industries, David Millstone and David Winter, recently sent letters to the White House and leaders of the House Ways and Means Committee and Senate Finance Committee urging them to support a proposal that would help families make meaningful improvements to their homes. The proposal would deliver a direct financial benefit to middle-class homeowners while providing a “Main Street” stimulus for the millions of Americans whose livelihoods are tied to the home improvement and construction industries, including contractors, roofers, plumbers, electricians, and painters.
With Congress poised to consider a new round of economic recovery and stimulus measures, the proposal set forth by the coalition includes a new refundable tax credit covering up to 30 percent of the cost of qualified home improvements. For example, a homeowner making $6,000 of improvements would receive $1,800 in savings, making it more affordable for those who have deferred maintenance or are experiencing changed living circumstances to make necessary upgrades. In doing so, the proposal would help middle-class homeowners enhance their quality of life while increasing the value of their largest financial asset. The credit would also create broad-based economic benefits by supporting demand for the services of the more than 10 million workers tied to the home improvement sector.
“As we have witnessed these past few months, the economic devastation caused by the coronavirus pandemic has been vast, shrinking GDP by five percent in the first quarter and wiping out millions of jobs across the country,” the letters explained. “Damage this far-reaching threatens everyone, from homeowners to small business owners and workers across the economic spectrum. Our proposed tax credits serve as an opportunity to counter this devastation, improving individual prosperity and supporting the economic recovery.”
The home and commercial construction sector is responsible for employing millions of Americans in high-value jobs. For example, the roofing industry alone is responsible for employing 1 million Americans in well-paying jobs and fostering economic activity in communities across the country.
The proposal also includes a provision that would help businesses make upgrades and safely reopen by providing a refundable credit for up to 30 percent of qualifying business property improvements. Together, the proposed credits would help stimulate the economy and get Americans back to work by investing in homes and businesses across the country.
Signatories of the letters to the administration and Congress include Standard Industries, the National Roofing Contractors Association, Asphalt Roofing Manufacturers Association, Atlas Roofing Corporation, Beacon Building Products, Building Suppliers Corporation, Cellulose Insulation Manufacturers Association, Chemical Fabrics & Film Association, Chicago Roofing Contractors Association, Colorado Roofing Association, EPDM Roofing Association, Firestone Building Products, GAF, International Institute of Building Enclosure Consultants, Johns Manville, Kansas Roofing Association, Kentucky Roofing Contractors Association, Metal Construction Association, Mid-States Asphalt, National Insulation Association, North Texas Roofing Contractors Association, Owens Corning, Polyisocyanurate Insulation Manufacturers Association, Roofing Contractors Association of Hawaii, Roofing Contractors Association of Washington, Roof Coatings Manufacturers Association, SPRI, SOPREMA, Spray Polyurethane Foam Alliance, SRS Distribution, TAMKO Building Products LLC, Tarco Roofing, and US GreenFiber LLC.
To read the full letters, visit the links available here, here, and here.