| 1 | 1 | | I |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION H. R. 2759 |
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| 5 | 5 | | To amend the Internal Revenue Code of 1986 to provide an exception to |
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| 6 | 6 | | percentage of completion method of accounting for certain residential |
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| 7 | 7 | | construction contracts. |
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| 8 | 8 | | IN THE HOUSE OF REPRESENTATIVES |
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| 9 | 9 | | APRIL9, 2025 |
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| 10 | 10 | | Mr. B |
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| 11 | 11 | | UCHANANintroduced the following bill; which was referred to the |
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| 12 | 12 | | Committee on Ways and Means |
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| 13 | 13 | | A BILL |
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| 14 | 14 | | To amend the Internal Revenue Code of 1986 to provide |
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| 15 | 15 | | an exception to percentage of completion method of ac- |
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| 16 | 16 | | counting for certain residential construction contracts. |
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| 17 | 17 | | Be it enacted by the Senate and House of Representa-1 |
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| 18 | 18 | | tives of the United States of America in Congress assembled, 2 |
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| 19 | 19 | | SECTION 1. SHORT TITLE. 3 |
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| 20 | 20 | | This Act may be cited as the ‘‘Fair Accounting for 4 |
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| 21 | 21 | | Condominium Construction Act’’. 5 |
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| 22 | 22 | | VerDate Sep 11 2014 08:02 Apr 22, 2025 Jkt 000000 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2759.IH H2759 |
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| 23 | 23 | | mprince on LAP1J3WLY3PROD with $$_JOB 2 |
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| 24 | 24 | | •HR 2759 IH |
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| 25 | 25 | | SEC. 2. EXCEPTION TO PERCENTAGE OF COMPLETION 1 |
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| 26 | 26 | | METHOD OF ACCOUNTING FOR CERTAIN RES-2 |
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| 27 | 27 | | IDENTIAL CONSTRUCTION CONTRACTS. 3 |
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| 28 | 28 | | (a) I |
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| 29 | 29 | | NGENERAL.—Section 460(e) of the Internal 4 |
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| 30 | 30 | | Revenue Code of 1986 is amended— 5 |
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| 31 | 31 | | (1) in paragraph (1)— 6 |
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| 32 | 32 | | (A) by striking ‘‘home construction con-7 |
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| 33 | 33 | | tract’’ both places it appears and inserting 8 |
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| 34 | 34 | | ‘‘residential construction contract’’, and 9 |
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| 35 | 35 | | (B) by inserting ‘‘(in the case of a residen-10 |
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| 36 | 36 | | tial construction contract which is not a home 11 |
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| 37 | 37 | | construction contract, determined by sub-12 |
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| 38 | 38 | | stituting ‘3-year’ for ‘2-year’ in subparagraph 13 |
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| 39 | 39 | | (B)(i))’’ after ‘‘the requirements of clauses (i) 14 |
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| 40 | 40 | | and (ii) of subparagraph (B) are not met’’, 15 |
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| 41 | 41 | | (2) in paragraph (5)(A), by striking ‘‘paragraph 16 |
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| 42 | 42 | | (4)’’ and inserting ‘‘paragraph (3)’’, and 17 |
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| 43 | 43 | | (3) by striking paragraph (4) and redesignating 18 |
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| 44 | 44 | | paragraph (5) as paragraph (4). 19 |
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| 45 | 45 | | (b) A |
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| 46 | 46 | | PPLICATION OFEXCEPTION FORPURPOSES OF 20 |
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| 47 | 47 | | A |
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| 48 | 48 | | LTERNATIVEMINIMUMTAX.—Section 56(a)(3) of such 21 |
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| 49 | 49 | | Code is amended by striking ‘‘any home construction con-22 |
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| 50 | 50 | | tract (as defined in section 460(e)(6))’’ and inserting ‘‘any 23 |
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| 51 | 51 | | residential construction contract (as defined in section 24 |
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| 52 | 52 | | 460(e)(4))’’. 25 |
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| 54 | 54 | | mprince on LAP1J3WLY3PROD with $$_JOB 3 |
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| 55 | 55 | | •HR 2759 IH |
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| 56 | 56 | | (c) EFFECTIVEDATE.—The amendments made by 1 |
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| 57 | 57 | | this section shall apply to contracts entered into after the 2 |
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| 58 | 58 | | date of the enactment of this Act. 3 |
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| 59 | 59 | | Æ |
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| 60 | 60 | | VerDate Sep 11 2014 08:02 Apr 22, 2025 Jkt 000000 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H2759.IH H2759 |
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| 61 | 61 | | mprince on LAP1J3WLY3PROD with $$_JOB |
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