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.

Summary: Toxic Drywall Homeowner Relief Act of 2010 - Amends the Internal Revenue Code to allow a deduction from gross income for the cost of removing and remediating drywall installed in a principal residence between 2004 and 2009 which is reasonably believed to have been manufactured in China and which contains elevated levels of sulphur or strontium.

Allows an additional deduction for the taxpayer's alternative living costs, and a tax credit of up to $1,000 for the cost of moving from a principal residence to temporary lodging, while drywall in such residence is being evaluated, removed, and replaced.

Terminates the tax deductions and credit allowed by this Act after 2011.

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.