Bill would give tax breaks for drywall

Homeowners with corrosive Chinese drywall in their homes would get tax relief under a bill that a Virginia congressman filed Thursday.

The bill, by Rep. Rob Wittman, would allow homeowners to deduct the costs of remediation and alternate living arrangements from their federal tax returns for up to three years.

“It’s clear to me not only are these families facing significant health risks, but their financial security is also in jeopardy,” he said in a statement.

More than 3,000 homeowners in Florida, Virginia and three dozen other states have complained to the Consumer Product Safety Commission about the drywall, saying it emits sulfuric gases that smell bad, corrode metal and cause health problems. The result: hundreds of lawsuits and a lengthy, ongoing federal investigation.

Wittman’s “Toxic Drywall Homeowner Relief Act” would amend the U.S. tax code to allow qualifying homeowners to:

n Deduct up to $20,000 a year for the cost incurred to remove and replace the drywall, degraded electrical wiring and damaged appliances from the home.

n Deduct up to $1,000 a month, to a maximum of $12,000, the cost of living outside the affected home while the presence of corrosive drywall is determined and during remediation.

The bill also would create a $1,000 tax credit for moving costs to and from temporary living quarters.

The deductions would apply only to primary homes with Chinese-manufactured drywall or drywall containing high sulfur or strontium levels that was installed between 2004 and 2009. If passed, the deductions could be taken in the 2009, 2010 and 2011 tax years.