I
119THCONGRESS
1
STSESSION H. R. 2759
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 HOUSE OF REPRESENTATIVES
APRIL9, 2025
Mr. B
UCHANANintroduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to provide
an exception to percentage of completion method of ac-
counting for certain residential construction contracts.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Fair Accounting for 4
Condominium Construction Act’’. 5
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SEC. 2. EXCEPTION TO PERCENTAGE OF COMPLETION 1
METHOD OF ACCOUNTING FOR CERTAIN RES-2
IDENTIAL CONSTRUCTION CONTRACTS. 3
(a) I
NGENERAL.—Section 460(e) of the Internal 4
Revenue Code of 1986 is amended— 5
(1) in paragraph (1)— 6
(A) by striking ‘‘home construction con-7
tract’’ both places it appears and inserting 8
‘‘residential construction contract’’, and 9
(B) by inserting ‘‘(in the case of a residen-10
tial construction contract which is not a home 11
construction contract, determined by sub-12
stituting ‘3-year’ for ‘2-year’ in subparagraph 13
(B)(i))’’ after ‘‘the requirements of clauses (i) 14
and (ii) of subparagraph (B) are not met’’, 15
(2) in paragraph (5)(A), by striking ‘‘paragraph 16
(4)’’ and inserting ‘‘paragraph (3)’’, and 17
(3) by striking paragraph (4) and redesignating 18
paragraph (5) as paragraph (4). 19
(b) A
PPLICATION OFEXCEPTION FORPURPOSES OF 20
A
LTERNATIVEMINIMUMTAX.—Section 56(a)(3) of such 21
Code is amended by striking ‘‘any home construction con-22
tract (as defined in section 460(e)(6))’’ and inserting ‘‘any 23
residential construction contract (as defined in section 24
460(e)(4))’’. 25
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(c) EFFECTIVEDATE.—The amendments made by 1
this section shall apply to contracts entered into after the 2
date of the enactment of this Act. 3
Æ
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