McGovern files bill to aid victims of scams, disasters

Ken Fisher points to one of the cracks in the foundation of his home in Vernon, Conn., July 1, 2019.

Ken Fisher points to one of the cracks in the foundation of his home in Vernon, Conn., July 1, 2019. AP FILE PHOTO

By JAMES PENTLAND

Staff Writer

Published: 01-16-2024 5:00 PM

WASHINGTON — Pushing for action at the federal level to assist homeowners afflicted by crumbling foundations, Rep. Jim McGovern has filed legislation dubbed the Tax Relief for Victims of Crimes, Scams and Disasters Act.

Co-sponsored by Rep. Jamie Raskin, D-Md., the bill would reinstate a tax deduction previously available to victims of scams, thefts, accidents and other personal casualty losses.

According to McGovern, the tax deduction was repealed under the 2017 Tax Cuts and Jobs Act.

The Trump tax law also repealed deductions for those suffering losses from unexpected disasters, including the growing number of Massachusetts homeowners realizing the cement in their home contains pyrrhotite, causing their foundation to crumble beneath them, the Worcester Democrat said.

“Crumbling foundations have caused massive financial and emotional burden for homeowners across central and western Massachusetts,” McGovern stated.

“I’ve visited many homes where families were suddenly left with exorbitant costs to ensure their home is safe. This legislation would provide immediate tax relief for these homeowners, as well as victims of scams and others suffering losses at no fault of their own.”

Monson resident Michelle Loglisci, a member of advocacy group Massachusetts Residents Against Crumbling Concrete, said Friday in an email she couldn’t comment specifically on McGovern’s bill because she hadn’t read it.

But she said group members are hopeful that state and federal legislation “will finally begin to help Massachusetts homeowners recover the huge financial loss they have incurred, and that their foundation will be replaced so their home retains its value and structural integrity.”

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In 2019, Loglisci served on the state’s Special Commission to Study the Financial and Economic Impacts of Crumbling Concrete Foundations due to the Presence of Pyrrhotite. The commission recommended legislation and financial assistance to address the problem but, so far, legislative efforts have stalled.

“While Connecticut has replaced over 840 foundations since 2019, Massachusetts homeowners wait for a bill to be passed here,” Loglisci wrote.

Concrete containing pyrrhotite originated from J.J. Mottes Concrete Co. in Stafford Springs, Conn., and was used in residential and commercial foundations in an area up to 44 miles away, according to the commission. Aside from its significant impact in Connecticut, the problem has arisen in Southampton, Belchertown and Ware, along with much of eastern Hampden County and parts of Worcester County.

Raskin and McGovern say reporting has revealed a pattern of devastated Americans saddled with exorbitant tax liabilities after losing money through scams, frauds, thefts and similar adverse events.

“Our government can act swiftly to relieve Americans reeling from personal casualty losses and the perverse harmful effects of the plutocratic Trump tax cuts and their sinister little tricks,” Raskin stated.

The bill would allow victims who suffered losses after passage of the 2017 Trump tax law to claim the deduction on prior year’s taxes, the lawmakers say.

James Pentland can be reached at jpentland@gazettenet.com.