Wittman proposes toxic drywall bill

HAMPTON ROADS, Va. (WAVY) - Virginia Congressman Rob Wittman introduced a bill Thursday to aid homeowners affected by toxic drywall. The bill would allow tax deductions and credit on expenses incurred by the presence of harmful drywall in homes. The deductions would be available to taxpayers filing their returns for 2009, 2010 and 2011.

"Dozens of constituents in the First District and many others across the Hampton Roads region have been deeply affected by the presence of toxic drywall in their homes. After visiting the homes of these folks and meeting with homeowners, it’s clear to me that not only are these families facing significant health risks, but their financial security is also in jeopardy," Wittman said in a news release.

The proposed legislation would allow individuals to claim a tax deduction for the costs incurred to remove or replace toxic drywall in their homes, as well as allow them to deduct any costs incurred to repair or replace damaged electrical system components and appliance up to $20,000 during each taxable year.

The bill would also allow residents affected by the toxic drywall to claim a deduction for the cost of alternate living expenses incurred while determining whether toxic drywall is present in their homes and during the repair process, up to $1,000 per month for no more than three years.

According to Congressman Wittman's Office, individuals would have to meet the following criteria to be eligible for the deductions and the tax credit:

Drywall was installed in the principal residence of the taxpayer after 2004 and before 2009

Qualified drywall removal and remediation costs include:

Removal of drywall containing elevated levels of sulphur or strontium from the principal residence and replacement of the drywall

Removal and replacement of electrical system components and appliances which corroded due to the presence of such drywall

Carry out other remediation activities recommended by the Consumer Product Safety Commission

For building inspections associated with any of these activities

Qualified alternative living expenses include costs for lodging (not lavish or extravagant) occupied by the taxpayer for a reasonable period while:

The taxpayer is determining whether their principal residence has drywall containing elevated levels of sulphur or strontium, and the drywall is being removed and replaced

Wittman’s bill also establishes a tax credit for the cost of moving to and from the temporary living quarters. Those who are eligible would receive a tax credit of up to $1,000 for qualified moving costs paid or incurred during the taxable year.

The costs would be incurred to move from the taxpayer’s principal residence to temporary lodging and back to their principal residence:

While the taxpayer is determining whether the principal residence has drywall containing elevated levels of sulphur or strontium, and

While such drywall is being removed and replaced.

CLICK HERE for full text of the legislation