SE Connecticut News

WASHINGTON, D.C. – On July 11, Rep. Joe Courtney (D-CT) 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. Joe Courtney (D-CT). “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.”

“Thousands of Eastern and Central Connecticut homes have been plagued with crumbling foundations, through no fault of their own, leaving families with exorbitant costs to replace their foundation and make necessary home repairs,” said Rep. John B. Larson (D-CT). “After hearing from area homeowners, I worked with Rep. Courtney and the IRS to ensure they could deduct these costs from their federal taxes. Unfortunately, Congressional Republicans eliminated this possibility in their 2017 Tax Law. I am proud to partner with Rep. Courtney and a bipartisan group of legislators to introduce this legislation today to restore the full federal Casualty Loss Deduction so impacted homeowners can once again deduct these costs on their taxes.”

“This bill is about simple justice and fairness to families whose crumbling foundations are decimating not only their homes, but their security and financial foundations. This initiative would provide relief to all who have suffered damage, enabling them to deduct losses from federal income taxes. We know that disasters can strike at any time and aren’t just limited to big events like tornadoes or hurricanes. Our bill is a commonsense and practical measure that will provide some financial relief to all Americans suffering from the devastating consequences of events outside of their control,” said Senator Richard Blumenthal (D-CT).

“Crumbling foundations have caused a massive financial and emotional burden for homeowners across eastern Connecticut through no fault of their own. The federal government should be doing all it can to help these homeowners make repairs, rather than forcing families to navigate a bunch of red tape. This commonsense bill is a necessary first step to make sure homes and the investment they represent for families in eastern Connecticut are safe, and I’ll continue fighting for the federal funding we need to address this crisis,” said Senator Chris Murphy (D-CT).

“Communities across the United States know all too well the devastation that fires, floods, mudslides, and other disasters can cause. When property owners incur losses – whether from an electrical fire, water intrusion, or other disasters – far too many find themselves not only underinsured, but all too often uninsured. Some families lose their homes or small businesses, bringing about unimaginable anguish in an already stressful situation,” said Rep. Julia Brownley (D-CA). “When someone’s property is destroyed, the federal tax code should not discriminate based on whether the loss was part of a ‘Presidentially-declared disaster.’ Instead of compounding a family’s loss, Americans should be guaranteed a tax deduction for uninsured property and casualty losses. That is why I am pleased to join my colleagues to ensure the federal tax code does not further victimize families following a natural disaster and provide them with the tax relief they need to recover and rebuild their lives and livelihoods.”

“In recent years my district has repeatedly suffered from massive flooding. The federal government has a relevant role to play in combating the devastating effects that accompany these disasters, including ensuring that our tax code helps families struggling to recover. The Casualty Loss Deduction Restoration Act, which I’m proud to help introduce, helps families recover from disasters regardless of where their homes are located, by restoring the federal casualty loss tax deduction for all those impacted by disasters. This will help families in my district and all across the country rebuild their homes and lives,” said Rep. Dan Crenshaw (R-TX).

“The Trump tax cuts weren’t just a handout to the ultra-wealthy—they also placed a heavy burden on homeowners by revoking their chance of seeking relief after a disaster hits their home,” said Senator Ed Markey (D-MA). “From the Berkshires to the Cape, families across Massachusetts should be able to recoup their losses so they don’t have to choose between rebuilding or living in ruin. Congress must restore the federal casualty loss tax deduction to protect families now more than ever, at a time when the climate crisis is making floods and storms even more devastating for frontline and environmental justice communities.”

“Louisiana knows storms and natural disasters all too well,” said Dr. Cassidy (R-LA). “The federal government should bounce people back to their feet not stick them to the ground like flypaper. This bill provides tax relief no matter the storm.”

Original source can be found here.