House Approved Tax Deductions for Foundation Repairs

Homeowners with pyrrhotite-damaged foundations could gain tax relief for repairs if the Senate passes the proposal.

Updated on Sept. 27, 2026 in Taxes

Bold flat-color editorial illustration showing a sharp concrete foundation fracture in red and cream, representing structural tax policy. — The House passed the Casualty Loss Deduction Restoration Act on Tuesday, allowing homeowners to claim federal tax deductions for pyrrhotite-related foundation repairs. AI Illustration. Upload story photo >

Live Poll

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

House lawmakers have passed a bill that would restore federal tax deductions for casualty losses related to crumbling concrete foundations. The legislation would allow eligible homeowners to claim repair costs retroactively to tax year 2021.

Why it matters

Homeowners currently facing foundation repairs often lack insurance coverage for damage caused by the mineral pyrrhotite, which expands over time. This bill aims to restore a tax relief mechanism lost when the Tax Cuts and Jobs Act of 2021 eliminated the casualty loss deduction.

Replacing a foundation damaged by pyrrhotite costs between $100,000 and $250,000. Approximately 35,000 homes are estimated to be affected by this concrete aggregate issue across the country.

The players

House of Representatives

The legislative body that approved the bill to restore tax deductions for pyrrhotite-related home repair costs.

Internal Revenue Service

The federal agency that administers tax collections and previously allowed casualty loss deductions for foundation repairs in 2017.

The details

The proposed Casualty Loss Deduction Restoration Act targets homes built between the 1980s and 2015 that contain concrete with pyrrhotite. When exposed to moisture and oxygen, this mineral oxidizes and causes concrete to expand, eventually requiring expensive repairs that involve lifting the home. If enacted, the legislation would re-establish the deduction that was available in 2017 before being removed in 2021.

Homes built between the 1980s and 2015 are at risk of foundation damage.
The IRS provided a casualty loss deduction for foundation damage in 2017.
The Tax Cuts and Jobs Act of 2021 eliminated the deduction.
House lawmakers approved the restoration proposal in September 2026.

Money Landscape

This proposal marks a legislative shift to restore a specific tax benefit curtailed by the Tax Cuts and Jobs Act of 2021. It serves as a targeted intervention for homeowners dealing with structural foundation damage that insurance providers frequently decline to cover.

If you own a home built between the 1980s and 2015 with cracking concrete, consult with a tax professional about potential eligibility for future retroactive deductions. Monitor the Senate legislative calendar to see if this proposal becomes law, as it could significantly offset the $100,000 to $250,000 cost of foundation replacement.

The takeaway

This bill highlights a path for potential relief on massive repair costs if federal law is updated to retroactively restore lost deductions. Homeowners with foundation damage should keep detailed records of all repair expenses and consult a tax professional about how this proposed change might impact future tax returns.