The U.S. House approved a proposal to restore a federal casualty-loss deduction for homeowners repairing foundations damaged by pyrrhotite. Senate approval is still required; if enacted, it would let them claim repair costs retroactively through tax year 2021.
Connecticut Reps. John B. Larson and Joe Courtney introduced the Casualty Loss Deduction Restoration Act, which advanced within a broader tax bill aimed at helping fraud victims. Larson's office estimates that 35,000 homes, particularly in New England, may be affected.
The University of Massachusetts Amherst estimates that replacing an affected foundation can cost $100,000 to $250,000. Pyrrhotite in concrete reacts with moisture and oxygen, causing expansion and cracks; insurance often does not cover damage that develops over time.
