House lawmakers have approved a proposal that could reopen a federal tax break for homeowners whose concrete foundations are failing because of pyrrhotite.
If the bill becomes law, people facing huge repair expenses from the mineral's damage could once again claim a casualty loss deduction on their federal taxes.
Here's what to know
The measure would allow homeowners to deduct repair costs for foundations damaged by pyrrhotite, Realtor.com reported. If enacted, it would let taxpayers claim that relief retroactively through tax year 2021, but the Senate must approve it.
The proposal, called the Casualty Loss Dedication Restoration Act, was introduced by Connecticut Reps. John B. Larson and Joe Courtney and advanced as part of a broader tax bill to help fraud victims. It would restore a casualty loss deduction the IRS made available in 2017 before the Tax Cuts and Jobs Act eliminated it in 2021.
Larson's office estimated that 35,000 homes, particularly in New England, may be affected.
"Thousands of homes in north-central and eastern Connecticut have been plagued with crumbling concrete foundations caused by the mineral pyrrhotite, leaving families with exorbitant repair costs up to the hundreds of thousands of dollars through no fault of their own," he said, per Realtor.com.
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More background
When pyrrhotite gets mixed into concrete, it can eventually become highly damaging. Moisture and oxygen cause the mineral to oxidize, triggering reactions that make the concrete expand and crack.
In homes built from the 1980s to around 2015, concrete aggregate sometimes included pyrrhotite from New England rock, the outlet noted. Because the problem can take years to surface, some homeowners may not realize anything is wrong until their foundation visibly breaks down.
The University of Massachusetts Amherst estimated that replacing an affected foundation can cost between $100,000 and $250,000. Often, the repair involves lifting the house so the concrete base can be rebuilt.
New England may not be the only region at risk. The U.S. Geological Survey has identified "permissive" geology for pyrrhotite in the Mid-Atlantic, in the South, and on the West Coast, Realtor.com said.
What's being done?
Restoring the casualty loss deduction could lower the burden on homeowners who have had to cover repairs themselves because insurance often will not pay for damage that develops over time.
State governments have also been responding. Connecticut passed laws that require more materials testing and broaden protections for homeowners, while Massachusetts is adding safeguards of its own.
One protection bars home inspection waivers from being required as a condition of accepting an offer, giving buyers a better chance to identify risks before closing.
"Time and time again, families have had to foot the bill to repair their foundations — damaged through no fault of their own," Larson said in a statement, per Realtor.com.
Where can I learn more?
Similar battles are playing out elsewhere as homeowners grapple with rising insurance costs and other property risks.
• In Hawai'i, Gov. Josh Green signed a lifeline for thousands as property insurance costs soared.
• In Louisiana, state officials faced angry residents during a public hearing on a deepening insurance crisis.
• Across the country, homeowners are falling for a growing trend that can trigger repair bills.
• On North Carolina's Outer Banks, officials may overturn the ban on oceanfront erosion barriers after another collapse.
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