Larson Receives Commitment for Bipartisan Path Forward in Ways and Means Committee on Tax Relief for Homeowners with Crumbling Foundations

Washington, D.C. - Today, Rep. John B. Larson (CT-01) received a commitment from Ways and Means Committee Chairman Jason Smith (MO-08) to find a bipartisan path forward on tax relief for homeowners with crumbling foundations.

 You can watch Rep. Larson’s remarks here. 

“Tens of thousands of homeowners in the Northeast are dealing with this unique issue that threatens their homes and frankly their finances as well. These homeowners, through no fault of their own, are dealing with crumbling foundations,” said Larson. “Unbeknownst to them, the concrete used in those foundations contains pyrrhotite, which we now know crumbles over time and pressure. Now they are dealing with exorbitant bills to replace their foundations. In 2017, we worked with the IRS to confirm that these costs were eligible to use the casualty loss deduction. Unfortunately, despite long standing policy that allowed any qualified homeowner to use the deduction, it is currently and temporarily limited to damages incurred under a Presidentially declared disaster. I want to commend Representatives Crenshaw, Rogers, and Brownley, who have introduced bipartisan legislation, along with Mr. Courtney and myself, to restore the full casualty loss deduction. Mr. Chairman, I hope that as the committee continues its work on disaster relief, we can work together with you on this bipartisan policy.” 

“I thank the gentlemen for his comments, and I certainly understand the interest in helping constituents to get back on their feet. That’s what we all want to do and I would be happy to work with you to find a path forward,” replied Chairman Smith. 

“Chairman Smith’s commitment during today’s Ways and Means Committee markup to ‘find a path forward’ on the bipartisan Casualty Loss Deduction Restoration Act is another positive step in Congressman Larson and my efforts to deliver support to communities affected by pyrrhotite and crumbling foundations. I am grateful for Congressman Larson’s leadership in the Ways and Means Committee and his persistence in advancing this important legislation,” said Rep. Joe Courtney (CT-02). 

Since 2018, only taxpayers whose disaster received a Presidential disaster declaration eligible for tax relief through the casualty loss deduction for uninsured casualty losses, leaving the thousands of Eastern and Central Connecticut homeowners impacted by crumbling foundations unable to claim a tax deduction for unreimbursed costs related to fixing their home. 

Reps. Larson and Courtney reintroduced the Casualty Loss Deduction Restoration Act in July with Reps. Dan Crenshaw (TX-02), Mike Rogers (AL-03), and Julia Brownley (CA-26), legislation that would restore the full casualty loss deduction to deliver financial relief to Americans who suffered losses from unexpected disasters, including crumbling foundations caused by the mineral pyrrhotite. 

For a fact sheet on the bill, click here.