Courtney, Larson Applaud House Passage of Their Bill to Restore Tax Relief for Homeowners with Crumbling Foundations

September 16, 2026 Press Release WASHINGTON, DC – Today, Congressman Joe Courtney (CT-02) and Congressman John Larson (CT-01) applauded House passage of their Casualty Loss Dedication Restoration Act, which passed the House last night within the larger bill H.R. 9500 by a vote of 408-17. Courtney and Larson’s bill would allow homeowners impacted by crumbling foundations due to pyrrhotite to claim the casualty loss deduction for repair costs and allow homeowners to retroactively claim the deduction starting in 2021. In July, Rep. Larson successfully led passage of the bill through the Ways and Means Committee. “House passage of this bill to bring long overdue relief to Connecticut homeowners impacted by crumbling foundations is only possible because of Congressman John Larson’s work and leadership on the Ways and Means Committee,” said Courtney. “Thousands of homes in northcentral 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. By finally restoring the casualty loss deduction for all taxpayers after it was drastically restricted by President Trump’s 2017 tax law and allowing homeowners to amend prior-year tax returns for repairs to crumbling foundations caused by pyrrhotite made during calendar years 2021-2025, Congress can provide overdue relief to impacted homeowners. The Senate must now act swiftly to take up and pass this bill.” “More than a decade since the crumbling foundations crisis was first discovered in our region, up to 35,000 homes have been impacted,” said Larson. “Time and time again, families have had to foot the bill to repair their foundations—damaged through no fault of their own. I worked with my colleagues on the Ways and Means Committee to advance real tax relief, so homeowners can afford to make the repairs they need, and those who already replaced their foundations can be made whole. I want to thank my friend and colleague, Congressman Joe Courtney, for his tireless efforts and partnership to get this bill across the finish line with today’s strong, bipartisan vote in the House. I urge the Senate to act, so we can finally get Connecticut homeowners the support and certainty they deserve.” As a senior Member of the Ways and Means Committee, Congressman Larson worked with Republican Ways and Means Committee Chair Jason Smith (MO-08), and the Democratic Ranking Member, Richard E. Neal (MA-01), to find a bipartisan path forward on tax relief for homeowners with crumbling foundations. This legislation builds on the work of Rep. Larson and Rep. Courtney, who secured guidance from the IRS in 2017 that allowed homeowners to use the casualty loss deduction to help pay for foundation repairs. Once the provision was limited by the 2017 Republican Tax Law, the lawmakers secured a second ruling allowing homeowners to continue to use the deduction through 2021. Starting in 2021, that law left the thousands of Eastern and Central Connecticut homeowners impacted by crumbling foundations unable to claim a tax deduction for unreimbursed costs related to fixing their home. Larson and Courtney’s legislation will ensure no Connecticut homeowners are left out simply because of when the repairs were made. In 2022, Congressman Courtney secured $2 million in federal Community Project funding for the Capitol Region Council of Governments (CRCOG) Gap Foundation Funding to assist with expenses not covered by the state’s relief program. Last year, Courtney, Larson, and CROCOG celebrated the first foundation repaired with this federal funding. ### Issues : Crumbling Foundations