S. 1687

119 S1687 IS: Fair Accounting for Condominium Construction Act
 U.S. Senate
 2025-05-08
 text/xml
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 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.