Crumbling Foundations
Many homeowners in parts of our state have discovered that their home foundations are crumbling due to a mineral called pyrrhotite in the concrete used to pour their homes' foundations.
Representative Larson has worked side-by-side with Representative Joe Courtney (CT-02), Senator Richard Blumenthal (D-CT), Senator Chris Murphy (D-CT) and local, state, and federal stakeholders to find solutions for Connecticut homeowners affected by this terrible issue.
Congressional efforts have been focused on two areas: federal studies and tax relief.
Tax Relief
Beginning in 2016, Reps. Larson and Courtney began consulting with the Internal Revenue Service (IRS) and Treasury Department staff to find relief for homeowners. As a result of these meetings, on November 22, 2017, the IRS issued Rev. Proc. 2017-60 to enact a "safe harbor" for the treatment of crumbling foundation-related repair costs as a "casualty loss" deduction from a taxpayer's taxable income under Section 165 of the Internal Revenue Code.
Unfortunately, the Republican tax law passed in 2017 temporarily limits the casualty loss deduction until 2025, excluding homeowners with crumbling foundations. Under the law, only taxpayers who suffer damage related to a presidentially-declared Stafford Act disaster may deduct their property-casualty losses. In order to mitigate this change, Representatives Larson, Courtney, and Neal (MA-01) were able to obtain guidance from the IRS to extend the period of time that homeowners would have to claim crumbling foundation related repairs on their federal taxes until the end of 2021.
Rep. Larson is working to pass a permanent fix for the casualty-loss provision. He joined Congressman Courtney to introduce H.R. 3251, which would repeal the temporary ban on using the casualty-loss deduction. This legislation was included in the Build Back Better Act when it was passed out of the Ways and Means Committee, however it was removed before it passed the House.
Federal Studies
Working with Senators Murphy and Blumenthal (D-CT) and Representative Courtney, Rep. Larson was able to secure three federal studies as part of the federal appropriations process:
- A Government Accountability Office (GAO) study to examine the financial impact of pyrrhotite in concrete home foundations. This study was directed as part of a FY19 government appropriations law (P.L. 116-6) and was completed in 2020.
- A U.S. Geological Survey to develop a map showing pyrrhotite occurrences across the United States. This research allows us to better understand other areas that may experience crumbling foundations in the future. The results of this research will lead to a greater understanding of other areas that may experience crumbling foundations in the future. This study was directed as part of a FY19 government appropriations law (P.L. 116-6) and was completed in 2020.
- A National Institute of Standards and Technology (NIST) study to research the effects of the mineral pyrrhotite on concrete aggregate. NIST is the leading federal expert in cement and concrete standards and will develop a cost-effective and standard testing method for at-risk homes and other structures for the presence of the mineral pyrrhotite. The study will also result in the creation of a risk-rating scale so that homeowners, businesses, and local government have a better understanding of what quantity of pyrrhotite poses a danger to their foundations' structural integrity. These results will provide much needed information to towns and homeowners who currently have no way of accurately accessing their properties' risk of collapse and potential impact on property value. This study has been regularly funded since an FY20 government appropriations law (P.L. 116-93).
More on Crumbling Foundations
The University of Connecticut has been awarded $662,400 in federal funding for research on the state’s crumbling foundations crisis.
The announcement was made Thursday by Democratic U.S. Reps. Joe Courtney (CT-02) and John Larson (CT-01). The money was secured in the House of Representatives’ fiscal year 2021 omnibus spending package, the congressmen’s offices announced.
The funding was awarded by the National Institute of Standards and Technology and comes one year after UConn received $768,000 for similar research.
The $3.5 trillion Build Back Better Act that includes significant funding for things like child care and workforce training also now includes provisions backed by U.S. Reps. John B. Larson and Joseph D. Courtney to help area homeowners with crumbling foundation costs.