Just last week the Internal Revenue Service (IRS) announced a plan to help homeowners who have corrosive Chinese Drywall in their home with tax breaks on items that have been destroyed as a result of the Drywall.

IRS website gives a good break down on the relief effort affecting repairs for drywall losses from drywall installed between 2001-2009. Entitled Revenue Procedure 2010-36, the procedure covers the following:

• Homeowner must pay for the repair of the loss and make the claim in the year of payment.
• You cannot make a claim that has been paid for by insurance or reimbursed by another source.
• If the homeowner does have a pending claim or suit they can claim reimbursement for 75% of the unreimbursed amount.

Many news sources have reported on this same topic: New York Times, New Orleans Times Picayune.

This is the first major federal effort to help compensate homeowners with tainted drywall. The drywall has affected homeowners in many states with the most concentrated in Florida and Louisiana.