Connecticut representative introduces crumbling foundations bill
Representative Joe Courtney of Connecticut has led bipartisan, bicameral lawmakers in introducing the Casualty Loss Deduction Restoration Act – legislation that would deliver financial relief to Americans who suffered losses from unexpected disasters, including crumbling foundations caused by the mineral pyrrhotite.
Prior to 2018, taxpayers who suffered an unexpected disaster—including a crumbling foundation—were eligible for tax relief through the casualty loss deduction for uninsured casualty losses. Unfortunately, since 2018, only taxpayers whose disaster received a Presidential disaster declaration through FEMA—a high threshold to meet—were able to take a loss and receive tax assistance. This has left many homeowners unable to claim this important deduction for unreimbursed costs related to fixing their home.
The Casualty Loss Deduction Restoration Act—co-sponsored by Rep. Joe Courtney (D-CT), Rep. John Larson (D-CT), Rep. Dan Crenshaw (R-TX), Rep. Mike Rogers (R-AL), Rep. Julia Brownley (D-CA), Senator Richard Blumenthal (D-CT), Senator Chris Murphy (D-CT), Senator Ed Markey (D-MA), Senator Elizabeth Warren (D-MA), and Senator Bill Cassidy (R-LA)—would restore the federal casualty loss deduction for all taxpayers with a casualty loss—not just those who had received a federal disaster declaration.
“Since the crumbling foundations crisis showed its face, my office has worked non-stop to find solutions and deliver support for affected communities. Unfortunately, as eastern Connecticut residents made clear last week in Vernon, homeowners have felt the push and pull of progress in Congress, and many have been left with exorbitant costs after a key method of relief—the casualty loss deduction—was eliminated in 2018,” said Rep. Courtney. “Now, with our new bill, homeowners would once again be able to claim a casualty loss deduction and receive tax relief. Thanks to strong bipartisan support among lawmakers and grassroot-advocates from across the country, I am confident we can advance this bill and support families who have incurred losses at no fault of their own.”
The bill has been endorsed by Connecticut state captive insurance company the Connecticut Foundations Solutions Indemnity Company (CFSIC), the National Association of REALTORS, the Eastern Connecticut Association of REALTORS, the Connecticut Association of REALTORS, , the National Association of Home Builders, the Connecticut Society of CPAs, the American Institute of CPAs, the Capitol Region Council of Governments, the Home Builders & Remodelers Association of Central Connecticut, the Massachusetts Bankers Association, and the Connecticut Bankers Association.
Last year Connecticut said that it was looking at adding $25 million in funding to capitalise the Crumbling Foundations Assistance Fund, which supplies funds to the CFSIC, which was founded specifically to help with crumbling foundations in the State.
