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Photo of Senator Steve Cassano.

STATE SENATOR

Steve Cassano

Advocating for Common-Sense Solutions

Good News for Homeowners with Crumbling Foundations

We should all thank our Democratic Congressional delegation down in Washington, D.C. for successfully fighting the Internal Revenue Service to ensure that the cost of any repairs you might make to your crumbling concrete home foundation can be claimed as a federal tax exemption through April 2021.

Claiming it wasn’t a “casualty loss,” Republicans in Congress recently passed a federal tax overhaul that eliminated a homeowner’s ability to deduct the cost of repairs of their crumbling foundations from their federal taxes.

But Senators Blumenthal and Murphy and Congressmen Larson and Courtney were able to convince the IRS otherwise, and now anyone who makes foundation repairs due to the presence of pyrrhotite can get a tax deduction for those repairs, once you receive a written evaluation from a licensed engineer indicating that the foundation was made with defective concrete

The new IRS rules will allow Connecticut homeowners with crumbling foundations to deduct qualified home repairs made through the end of December 2020, and you can claim them on your federal tax return due in April 2021.

concrete

Connecticut’s Response to Crumbling Foundations

An important part of the bipartisan budget that Democrats and Republicans worked on together last fall was providing grants and low-interest loans for homeowners with crumbling concrete foundations, and putting in place fair procedures and a process for repairing crumbling foundations.

Next week, the State Bond Commission is scheduled to approve $350,000 to provide the initial capital and professional services of a superintendent needed to begin the operations of the Connecticut Foundation Solutions Indemnity Company, LLC, which will administer the $20 million Crumbling Foundations Assistance Fund.

After all the conversations I have had with affected homeowners, with local officials, and with my legislative colleagues, I am glad to see this program finally getting off the ground in order to help our citizens who have been let down by the private sector construction, banking and insurance industries and who have ultimately turned to state government for help. That’s what we’re here for!