House Approved Tax Deductions for Foundation Damage

Lawmakers voted to restore federal casualty loss deductions for homeowners affected by crumbling concrete foundations.

Updated on Sept. 27, 2026 in Taxes

Isometric editorial illustration of a concrete foundation corner showing hairline cracks, symbolizing residential repair costs. — The House approved a measure to reinstate tax casualty loss deductions for homeowners managing expensive repairs for concrete foundations damaged by pyrrhotite. AI Illustration. Upload story photo >

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Should the federal government offer tax deductions to homeowners for damage caused by crumbling foundations?

House members have passed legislation to reinstate federal tax casualty loss deductions for homeowners whose foundations were damaged by pyrrhotite. This proposal aims to provide relief for families facing massive repair bills for degrading concrete.

Why it matters

Homeowners currently bear the full financial burden of foundation repairs as insurance companies frequently deny claims for damage that develops over time. This legislation would allow affected individuals to recoup significant costs through retroactive tax filings.

Replacing a foundation impacted by pyrrhotite costs between $100,000 and $250,000. Approximately 35,000 homes built between the 1980s and 2015 may contain the concrete aggregate responsible for this damage.

The players

House of Representatives

This is the lower chamber of the United States Congress that initiates federal tax legislation.

Internal Revenue Service

This federal agency is responsible for collecting taxes and administering federal tax law in the United States.

The details

The proposal aims to restore deductions that were eliminated under the 2021 Tax Cuts and Jobs Act, allowing homeowners to claim repair expenses retroactively through the 2021 tax year. Repairing these foundations is a complex process that requires lifting the entire structure to rebuild the concrete base.

Homes built from the 1980s to 2015 often contained pyrrhotite.
The IRS introduced a foundation casualty loss deduction in 2017.
The Tax Cuts and Jobs Act eliminated the deduction in 2021.
House lawmakers approved the current restoration proposal in September 2026.

Market Landscape

This legislation marks a direct reversal of the tax policy established by the Tax Cuts and Jobs Act of 2021, which removed the casualty loss deduction previously available to homeowners. By targeting this specific type of structural damage, the bill seeks to address an ongoing crisis that has undermined property values for thousands of residents.

Homeowners who spent tens of thousands of dollars to replace failing foundations could potentially claim those costs retroactively to reduce their tax liabilities. This change would provide significant financial relief to those struggling to recover from the high costs of structural concrete failure.

The takeaway

Homeowners who suspect their foundations are failing due to pyrrhotite should maintain detailed records of all repair invoices and professional assessments. Keeping these documents organized is essential for ensuring eligibility if this legislation is enacted into law.