119-s1687

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1687 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1687

 To amend the Internal Revenue Code of 1986 to provide an exception to 
 percentage of completion method of accounting for certain residential 
 construction contracts.

_______________________________________________________________________

 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.

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

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Fair Accounting for Condominium 
Construction Act''.

SEC. 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.
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