Fair Accounting for Condominium Construction Act

119 S1687 IS: Fair Accounting for Condominium Construction Act U.S. Senate 2025-05-08 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. II 119th CONGRESS 1st Session S. 1687 IN THE SENATE OF THE UNITED STATES May 8, 2025 Mr. Young introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to provide an exception to percentage of completion method of accounting for certain residential construction contracts. 1. Short title This Act may be cited as the Fair Accounting for Condominium Construction Act . 2. Exception to percentage of completion method of accounting for certain residential construction contracts (a) In general Section 460(e) of the Internal Revenue Code of 1986 is amended— (1) in paragraph (1)— (A) by striking home construction contract both places it appears and inserting residential construction contract , and (B) by inserting (determined by substituting 3-year for 2-year in subparagraph (B)(i) for any residential construction contract which is not a home construction contract) after the requirements of clauses (i) and (ii) of subparagraph (B) , (2) by striking paragraph (4) and redesignating paragraph (5) as paragraph (4), and (3) in subparagraph (A) of paragraph (4), as so redesignated, by striking paragraph (4) and inserting paragraph (3) . (b) Application of exception for purposes of alternative minimum tax Section 56(a)(3) of such Code is amended by striking any home construction contract (as defined in section 460(e)(6)) and inserting any residential construction contract (as defined in section 460(e)(4)) . (c) Effective date The amendments made by this section shall apply to contracts entered into after the date of the enactment of this Act.