Opinion: A tax credit for home improvements is vital in the coronavirus era

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Opinion: A tax credit for home improvements is vital in the coronavirus era
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Congress has an opportunity to recognize the unique importance of the home in American life, boost the economy, and help families rebuild their wealth by providing a tax credit to make home improvements more affordable.

In addition to the many personal tragedies caused by COVID-19, the resulting economic devastation has, so far, shrunk GDP by 5% in the first quarter and wiped out every job gained since the great financial crisis. Damage this far-reaching threatens everyone – businesses, independent contractors, workers, and the 65.1% of American households that own homes.

Encouraging home improvements would also help to correct long-term underinvestment in the very places where Americans spend most of their time. It has been estimated that 40% of America's homes are at least 50 years old. Meanwhile, in inflation adjusted terms total homeowner improvement expenditures in 2017 were still down nearly $28 billion from a decade earlier.

This is particularly relevant for millennials, who, after taking a long road to home ownership, are now eager to maximize the value of their new homes.

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