CT'sJoeCourtney proposes bill restoring tax relief for crumbling foundation costs [Journal Inquirer, Manchester, Conn.]

Jul. 11—Before the law was eliminated, taxpayers who suffered an unexpected disaster, such as crumbling foundations, were eligible for tax relief through the casualty loss deduction for any uninsured losses.

Since 2018, only taxpayers whose disaster rose to the level of a presidential disaster declaration through FEMA — a particularly high threshold — were able to receive tax assistance.

While the Connecticut Foundations Solutions Indemnity Co., or CFSIC, is covering the cost of replacing foundations, the captive insurance company does not pay for other repairs, such as those to lawns or driveways that are destroyed when replacing a foundation.

"Since the crumbling foundations crisis showed its face, my office has worked nonstop to find solutions and deliver support for affected communities," Courtney said, adding that many affected homeowners have been left with "exorbitant costs" since the deduction was repealed.

Courtney's bill is being backed by other members of Connecticut's congressional delegation, including Rep. John Larson, and Sens. Chris Murphy and Richard Blumenthal, as well as lawmakers from both parties throughout the country.

"Thanks to strong bipartisan support among lawmakers and grassroots 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," Courtney said.

Larson noted that there are likely thousands of homes in eastern and central Connecticut with crumbling foundations.

"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," Larson said on Tuesday.

Blumenthal said the proposal is about "simple justice and fairness" to homeowners with crumbling foundations, adding that disasters "aren't just limited to big events like tornadoes or hurricanes."

Lawmakers from Texas and California who signed onto the bill said that it would help provide relief to their constituents facing disasters not currently covered, including fires, floods, and mudslides.

Sen. Ed Markey, a Democrat from Massachusetts, took aim at Trump and other Republicans for their support of a tax plan that eliminated the deduction in the first place.

"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," he said. "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."

___

(c)2023 Journal Inquirer, Manchester, Conn.

Visit Journal Inquirer, Manchester, Conn. at www.journalinquirer.com

Distributed by Tribune Content Agency, LLC.