I 

114TH CONGRESS 

1ST SESSION H. R. 3545 

To amend the Internal Revenue Code of 1986 to provide a credit for replacement costs associated with certain imported corrosive drywall, and to 

amend the Housing and Community Development Act of 1974 to allow 

use of community development block grant amounts for repairs to housing constructed using such corrosive drywall, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 17, 2015 

Mr. JOLLY introduced the following bill; which was referred to the Committee 

on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

a credit for replacement costs associated with certain 

imported corrosive drywall, and to amend the Housing 

and Community Development Act of 1974 to allow use 

of community development block grant amounts for repairs to housing constructed using such corrosive 

drywall, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Corrosive Drywall Re3 mediation Act’’. 

4 SEC. 2. CREDIT FOR REPLACING CORROSIVE DRYWALL. 

5 (a) IN GENERAL.—Subpart A of part IV of sub6 chapter A of chapter 1 of the Internal Revenue Code of 

7 1986 is amended by adding at the end the following: 

8 ‘‘SEC. 25E. CORROSIVE DRYWALL REPLACEMENT. 

9 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in10 dividual, there shall be allowed as a credit against the tax 

11 imposed by this chapter for the taxable year an amount 

12 equal to the qualified drywall replacement expenditures 

13 the taxable year. 

14 ‘‘(b) QUALIFIED DRYWALL REPLACEMENT EXPENDI15 TURES.—For purposes of this section, the term ‘qualified 

16 drywall replacement expenditures’ means amounts paid 

17 during the taxable year to repair damage to the taxpayer’s 

18 personal residence or household appliance and for which 

19 a deduction would, but for subsection (c), be allowable 

20 under section 165 by reason of section 4 of Revenue Pro21 cedure 2010–36. 

22 ‘‘(c) DENIAL OF DOUBLE BENEFIT.—No credit shall 

23 be allowed under subsection (a) for any expenditure for 

24 which a deduction or credit is allowed under any other 

25 provision of this chapter.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for subpart A of part IV of subchapter A of chapter 1 

3 of such Code is amended by adding at the end the fol4 lowing: 

‘‘Sec. 25E. Corrosive drywall replacement.’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to amounts paid before, on, or 

7 after the date of the enactment of this Act. 

8 (d) WAIVER OF LIMITATION FOR CREDITS AND RE9 FUNDS ATTRIBUTABLE TO THIS ACT.—If a credit or re10 fund of any overpayment of tax resulting from the applica11 tion of the amendment made by subsection (a) to a period 

12 before the date of enactment of this Act is prevented as 

13 of such date by the operation of any law or rule of law 

14 (including res judicata), such credit or refund may never15 theless be allowed or made if the claim therefor is filed 

16 before the close of the 1-year period beginning on the date 

17 of the enactment of this Act. 

18 SEC. 3. USE OF COMMUNITY DEVELOPMENT BLOCK 

19 GRANTS FOR REMEDYING CORROSIVE 

20 DRYWALL. 

21 Section 105(a) of the Housing and Community De22 velopment Act of 1974 (42 U.S.C. 5305(a)) is amended— 

23 (1) in paragraph (24)(D), by striking ‘‘and’’ at 

24 the end; 


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1 (2) in paragraph (25), by striking the period at 

2 the end and inserting ‘‘; and’’; and 

3 (3) by adding at the end the following new 

4 paragraph: 

5 ‘‘(26) activities necessary to remove or remedy 

6 the use of corrosive drywall installed in housing (in7 cluding single-family and multifamily housing) dur8 ing construction or rehabilitation that occurred dur9 ing the period from 2001 through 2009; and for 

10 purposes of this paragraph, the term ‘corrosive 

11 drywall’ means drywall that is identified as problem 

12 drywall under the two-step identification method 

13 published by the Consumer Product Safety Commis14 sion and the Department of Housing and Urban De15 velopment in their interim guidance dated January 

16 28, 2010.’’. 

Æ 


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