The Oregonian: Tax credits for remodeling projects would add jobs, House Republicans say

Wednesday, February 9th, 2011 – Oregon House Republicans rolled out their job stimulus plan today, which would offer tax breaks for home and business remodeling projects.

The bill, similar to one they tried two years ago, got a lukewarm reception from members of the House Transportation and Economic Development Committee.

House Co-speaker Bruce Hanna and Rep. Tim Freeman, both Roseburg Republicans, tried to blunt criticism that the bill would spend state taxpayer dollars on new swimming pools and granite counters.

“It’s not just for the rich,” Freeman said. “The main qualification is you own property, you have some tax liability and you have some access to capital.”

Under the bill, taxpayers would get a 50 percent credit for improvements to their homes or businesses. Improvements that conserved energy or added access for disabled people would receive tax credits worth the entire cost of the projects.

Homeowners could get the credits for projects ranging from $5,000 to $50,000. Businesses could get them for projects that cost $25,000 to $500,000.

If approved, the tax credits would cost the state an estimated $45 million a year in lost revenue.

Hanna and Freeman said it would quickly add jobs in the construction industry, which has been hit especially hard by the recession. But committee members said they would have to weigh the cost against other pressing needs, such as schools.

It’s unclear whether the bill will move beyond the hearing stage.

– by Harry Esteve , The Oregonian