Glenn Nye Asks IRS to Aid Toxic Drywall Victims

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11/23/09 -- With the results of a scientific study now confirming the link between toxic drywall and severe damage to homes, Congressman Glenn Nye (VA-02) today asked the Internal Revenue Service (IRS) to move quickly to grant a tax deduction to affected homeowners.

In response to an inquiry from Nye and other lawmakers, the IRS announced earlier this year that toxic drywall damage could enable homeowners to claim the same tax deduction that applies to homes damaged by fire or other disasters.

On Monday, the Consumer Product Safety Commission (CPSC) released results from an indoor air study of 51 homes, showing a “strong association between homes with toxic drywall and levels of hydrogen sulfide in those homes.”

“Based on the report today, toxic drywall clearly meets the standard set by the IRS for granting these families a tax deduction for the damage to their homes. The IRS needs to act quickly to implement this tax deduction, and we need to start testing individual homes as soon as possible so families can begin to get some financial relief,” said Congressman Glenn Nye, who has been leading the fight in Washington to provide aid to homeowners struggling with toxic drywall.

Nye called on the IRS and the CPSC to work together to formally approve the casualty loss tax deduction for homeowners affected by toxic drywall, and to develop a protocol for confirming the presence of the drywall in affected homes.

Fighting for a Tax Break for Homeowners
The idea of granting homeowners a tax deduction to help pay for the damage caused by toxic drywall was initially proposed in a letter to the IRS on June 16th by Congressman Glenn Nye and Senators Mark Warner, Jim Webb, and Bill Nelson (D-FL). In the letter, the lawmakers ask if affected homeowners could qualify for the casualty loss deduction – the same tax deduction given to homeowners who suffer property damage as a result of fire, flooding or other disasters.

In a response to the letter on July 2, the IRS stated: “If it is determined that Chinese drywall emits an unusual or severe concentration of chemical fumes that causes the extreme and unusual damage you describe, affected taxpayers can qualify for a casualty loss deduction.”

While waiting for results of the study, Nye has been active in pursuing other avenues to provide help to affected homeowners.

On October 29, Nye passed an amendment in the House of Representatives to allow homeowners to access Home Disaster Loans through the Small Business Administration. The amendment is currently awaiting action in the Senate.

On October 8th, Nye introduced a resolution in the House to encourage banks and mortgage servicers to work with homeowners to provide temporary forbearance on mortgages. Many homeowners have been forced to move into rental housing due to the toxic fumes emitted by the drywall, but are still making mortgage payments on their contaminated homes.

“Today’s announcement is a step forward, but I’m not going to be satisfied until every family affected by toxic drywall is made whole again,” said Nye.

Source: Congressman Glenn Nye