“Fiscal Cliff” has been buzzing around the media and in many businesses for the last few months, and a few days ago, a decision was made on how to avoid falling off said “cliff.” The tax hikes and reductions in spending, that could have damaged the already fragile economy, have been avoided for now. What does this mean for kitchen and bath industry professionals? By avoiding these changes, the recovering housing market has been spared from another punch to the stomach.
In an article released by the NAHB, “Fiscal Cliff Avoided: What it Means for Housing and Home Builders,” the details of how H.R. 8, the American Taxpayer Relief Act of 2012, will extend most of the 2001/2003 tax cuts permanently. There were some interesting items in H.R. 8 that housing stakeholders, such as kitchen and bath industry professionals, and home builders should look at:
Business Tax Items
- Extends the section 45L new energy-efficient home tax credit through the end of 2013
Homeowner Tax Items
- Deduction for mortgage insurance extended through the end of 2013
Multi-family Tax Items
- Extension through the end of 2013 of base housing allowance rules for affordable housing
To read the full list of what has been included, and what has not be included, in the H.R.8, click here for the article: Fiscal Cliff Avoided: What it Means for Housing and Home Builders.