The Internal Revenue Service (IRS) has implemented tax breaks called Revenue Procedure 2010-36 on dry wall repair due to flawed Chinese drywall installed between 2001 and 2009. The IRS is allowing taxpayers to claim a casualty loss on the repairs of the drywall as well as the home appliances affected by the defective drywall.
Homes manufactured during the nearly 10-year span using the drywall have experienced issues such as putrid odor and pipe and wire corrosion. During the housing boom early in the decade, drywall from China was used to build homes across the nation with a large allotment of the homes built in Florida and Louisiana.