CRI Urges Members To Lobby Georgia Senator

Dalton, GA, Feb. 6, 2009--The Carpet and Rug Institute is urging its members to send letters of support to Georgia Sen. Johnny Isakson for the American Home Furnishing Coalition tax credit proposal.

In an e-mail to members, CRI chief operating officer Frank Hurd said "We are reaching crunch time with the Senate stimulus package and I would ask you to renew your efforts to reach out to Senator Isakson, who is becoming a key player in the debate."

In a sample letter for members to use, Hurd wrote, "I would really like to ask you to broaden your support to include the American Home Furnishing Coalition tax credit proposal. It is our sincere belief that unless we get consumers into the store to purchase our products there won’t be a successful recovery in (Georgia)."

Specifically, the coalition has proposed a temporary (two- to three-year maximum) refundable consumer tax credit for the purchase or installation of home furnishings. A 10 to 20 percent refundable credit would apply to renters and homeowners with an annual income of $50,000 or less.

The proposal also includes a 10 percent tax deduction (capped at $1,000-$2,000) for the purchase or installation of home furnishings for individuals with an annual income less than $150,000 and couples with annual income less than $250,000.

Commercial, retail and contractor incentives would include:

A 10 percent refundable tax credit for inventory purchases of building products by retailers, distributors and contractors;

A retailer, distributor and contractor deduction for bad debt based on historical experience rather than when the debt is in fact proven to be uncollectible;

A capped tax credit for commercial and investor taxpayers on the purchase of building products otherwise considered to be ordinary and necessary building expenses;

A 50 percent bonus depreciation in the year of purchase for depreciable building products for commercial and investor taxpayers.