Text: H.R.4881 — 111th Congress (2009-2010)All Information (Except Text)

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Introduced in House (03/18/2010)


111th CONGRESS
2d Session
H. R. 4881


To amend the Internal Revenue Code of 1986 to allow individuals a deduction for costs incurred to remediate the presence of drywall containing elevated levels of sulphur or strontium in the principal residence of the taxpayer, a deduction for alternative living costs incurred by reason of the need to vacate such residence because of such drywall, and a credit against income tax for the costs of moving to and from the temporary living quarters.


IN THE HOUSE OF REPRESENTATIVES

March 18, 2010

Mr. Wittman introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend the Internal Revenue Code of 1986 to allow individuals a deduction for costs incurred to remediate the presence of drywall containing elevated levels of sulphur or strontium in the principal residence of the taxpayer, a deduction for alternative living costs incurred by reason of the need to vacate such residence because of such drywall, and a credit against income tax for the costs of moving to and from the temporary living quarters.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

This Act may be cited as the “Toxic Drywall Homeowner Relief Act of 2010”.

SEC. 2. Deduction for costs to remediate the presence of drywall containing elevated levels of sulphur or strontium in the principal residence of the taxpayer and for temporary alternative living costs incurred by reason of the presence of such drywall.

(a) In general.—Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to additional itemized deductions for individuals) is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section:

“SEC. 224. Deduction for costs to remediate the presence of drywall containing elevated levels of sulphur or strontium in the principal residence of the taxpayer and for temporary alternative living costs incurred by reason of the presence of such drywall.

“(a) In general.—In the case of an eligible individual, there shall be allowed as a deduction an amount equal to—

“(1) the qualified drywall removal and remediation costs paid or incurred by the taxpayer during the taxable year, and

“(2) the qualified alternative living costs so paid or incurred.

“(b) Dollar limitations.—

“(1) DRYWALL REMOVAL AND REMEDIATION COSTS.—The deduction allowed by this section for qualified drywall removal and remediation costs for any taxable year shall not exceed the excess of—

“(A) $20,000, over

“(B) the deduction allowed to the taxpayer by this section for qualified drywall removal and remediation costs for all prior taxable years.

“(2) QUALIFIED ALTERNATIVE LIVING COSTS.—The deduction allowed by this section for qualified alternative living costs for any taxable year shall not exceed the excess of—

“(A) $12,000, over

“(B) the deduction allowed to the taxpayer by this section for qualified alternative living costs for all prior taxable years.

No more than $1,000 of such costs may be taken into account for any month.

“(c) Definitions.—For purposes of this section—

“(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible individual’ means any individual if—

“(A) drywall was installed in the principal residence of such individual after 2004 and before 2009, and

“(B) it is reasonable to believe that the drywall—

“(i) was manufactured in the People's Republic of China, or

“(ii) contains elevated levels of sulphur or strontium.

“(2) QUALIFIED DRYWALL REMOVAL AND REMEDIATION COSTS.—The term ‘qualified drywall removal and remediation costs’ means costs incurred—

“(A) to remove drywall containing elevated levels of sulphur or strontium from the principal residence of the taxpayer and to replace the drywall,

“(B) to remove and replace electrical system components and appliances which corroded by reason of the presence of such drywall,

“(C) to carry out other remediation activities recommended by the Consumer Product Safety Commission by reason of such drywall, and

“(D) for building inspections associated with any of the foregoing.

“(3) QUALIFIED ALTERNATIVE LIVING COSTS.—The term ‘qualified alternative living costs’ means costs for lodging (not lavish or extravagant under the circumstances) occupied by the taxpayer for a reasonable period—

“(A) while the taxpayer is determining whether the taxpayer’s principal residence has drywall containing elevated levels of sulphur or strontium, and

“(B) while such drywall is being removed and replaced.

“(4) PRINCIPAL RESIDENCE.—The term ‘principal residence’ has the meaning given to such term by section 121.

“(d) Certain rules To apply.—Rules similar to the rules under paragraphs (4), (5), (6), and (7) of section 25D(e) shall apply for purposes of this section.

“(e) Application of section.—The section shall apply only to taxable years beginning after December 31, 2008, and before January 1, 2012.”.

(b) Deduction allowed whether or not taxpayer itemizes other deductions.—Subsection (a) of section 62 of such Code is amended by inserting after paragraph (21) the following new paragraph:

“(22) DEDUCTION FOR COSTS TO REMOVE AND REPLACE CERTAIN DRYWALL AND FOR TEMPORARY ALTERNATIVE LIVING COSTS.—The deduction allowed by section 224.”.

(c) Clerical amendment.—The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 223 the following new item:


“Sec. 224. Deduction for costs to remediate the presence of drywall containing elevated levels of sulphur or strontium in the principal residence of the taxpayer and for temporary alternative living costs incurred by reason of the presence of such drywall.”.

(d) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

SEC. 3. Credit for moving costs associated with vacating taxpayer’s principal residence by reason of drywall containing elevated levels of sulphur or strontium.

(a) In general.—Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25D the following new section:

“SEC. 25E. Moving costs associated with vacating taxpayer’s principal residence by reason of drywall containing elevated levels of sulphur or strontium.

“(a) In general.—In the case of an eligible individual (as defined in section 224(c)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the qualified moving costs paid or incurred by the taxpayer during the taxable year.

“(b) Maximum credit.—The aggregate costs taken into account under subsection (a) with respect to moves from and to the taxpayer’s principal residence shall not exceed $1,000.

“(c) Qualified moving costs.—For purposes of this section, the term ‘qualified moving costs’ means costs incurred—

“(1) to move from the taxpayer’s principal residence (within the meaning of section 121) to temporary lodging to be occupied by the taxpayer—

“(A) while the taxpayer is determining whether the taxpayer’s principal residence has drywall containing elevated levels of sulphur or strontium, and

“(B) while such drywall is being removed and replaced, and

“(2) to move from such lodging back to such residence.

“(d) Application of section.—The section shall apply only to taxable years beginning after December 31, 2008, and before January 1, 2012.”.

(b) Clerical amendment.—The table of sections for such subpart A is amended by inserting after the item relating to section 25D the following new item:


“Sec. 25E. Moving costs associated with vacating taxpayer’s principal residence by reason of drywall containing elevated levels of sulphur or strontium.”.

(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2008.