WASHINGTON, July 31 /PRNewswire/ -- Yesterday, President Bush signed the American Housing Rescue and Foreclosure Prevention Act (H.R. 3221) into law. The Associated Equipment Distributors (AED), an association representing construction equipment distributors, was an instrumental force in bringing a provision in the bill -- the home purchase tax credit, which provides first-time homebuyers with a tax credit of up to $7,500 -- to fruition.

AED first proposed the home purchase tax credit in January, arguing that it would stimulate demand in the housing market, help eliminate excess inventory, reverse declining home prices, and restore consumer confidence. Other organizations quickly saw the merits of the proposal and became important allies in the effort. Ultimately, AED helped build a broad-based coalition to support enactment of the legislation.

"The home purchase tax credit isn't a panacea for every woe plaguing the economy, but it should help nudge buyers off the fence, eliminate excess inventory, and ultimately get companies involved in home construction back on firmer financial footing," said AED President Toby Mack. "Congratulations to our Washington team and all AED members who have worked on this issue."

The housing downturn has had an impact on the construction industry. Ninety-three percent of distributors who responded to AED's 2008 Government Affairs Survey said the housing downturn had an impact on their companies; close to half said the impact was "major."

In June, AED Government Affairs Committee Chairman Dale Leppo, Leppo Rents/Bobcat of Akron, testified at a House Small Business Committee hearing along with representatives from the other major trade associations involved in the home purchase tax credit campaign.

Under the new law, first time homebuyers who purchase a home in the next year will receive a tax credit of 10 percent of the cost the home (up to $7,500). Taxpayers who take advantage of the credit will have to pay it back to the government in 15 annual installments. The credit begins to phase out for a taxpayer with an adjusted gross income in excess of $75,000 ($150,000 in the case of joint returns).

About AED

AED is an association of independent distributors, manufacturers and other organizations involved in the distribution of construction equipment and related products and services in North America and throughout the world. AED members sell, service and rent equipment to markets including heavy and light construction, mining, agriculture, aggregates and industrial. For more information visit http://www.aednet.org.

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SOURCE Associated Equipment Distributors

CONTACT: Christian Klein of Associated Equipment Distributors, +1-703-739-9513, caklein@aednet.org

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