Connecticut Representatives Introduce Bill for Tax Write-Off on Pyrrhotite-Damaged Home Foundations
Connecticut Representatives John B. Larson and Joe Courtney, both Democrats, have introduced the 'Casualty Loss Dedication Restoration Act.' This measure, which has passed the House as part of a larger tax relief bill for fraud victims, aims to allow homeowners to claim a casualty loss deduction for home foundations damaged by pyrrhotite. Pyrrhotite is a rare mineral, primarily found in the Northeast, that causes concrete to expand and crumble when used as an aggregate and exposed to moisture and oxygen. The bill would permit homeowners to retroactively claim this deduction, similar to those for natural disasters, going back to tax year 2021. This could significantly impact tens of thousands of homes, particularly in New England, that may require costly foundation replacements, with repair costs ranging from $100,000 to $250,000. The Senate must approve the measure for it to become law.
