Federal tax relief may come to Connecticut homeowners impacted by crumbling foundations

HARTFORD, Conn. (WTNH) — More federal tax relief could soon be coming to thousands of Connecticut homeowners impacted by crumbling foundations.

A bill has advanced in the Ways and Means Committee, which is being pushed by Congressmen John Larson (D-CT 1) and Joe Courtney (D-CT 2).

If passed, the bill would allow homeowners with crumbling foundations caused by the material pyrrhotite to claim the casualty loss deduction.

State and local leaders joined lawmakers and advocates Tuesday to applaud the bill.

“This one is the big one in terms of getting the tax code situated where it ought to be,” Rep. Courtney said on Tuesday.

“I think the good news here, too, is that this came out of committee unanimously and bipartisan,” Rep. Larson said.

The bill also allows for claims to be made retroactively to 2021. It now advances to the House floor for a vote.

State Sen. Jeff Gordon (R-35) said in a statement saying:

“Very encouraging bipartisan news. As an Ex-Officio member of the Connecticut Foundation Solutions Indemnity Company and as a lawmaker representing affected communities, I have heard directly from many victims of the crumbling foundation issue. Our bipartisan work must continue. As Republicans and Democrats, here in Connecticut and in DC, we must continue to collaborate to do what’s right for the people that have entrusted us as their voice.”