Fair Accounting for Condominium Construction Act

House Votes

This bill changes how some residential builders handle their taxes. It creates an exception to the “percentage-of-completion” accounting method for certain residential construction projects. In plain terms, it lets qualifying home and condo builders use a different timing for reporting income from their construction contracts, and it aligns the same exception for the alternative minimum tax. It also updates tax code language so the exception applies to “residential construction” (not just “home construction”), which can cover more types of housing like condominiums.

The change would apply only to new contracts made after the law takes effect. That means existing contracts are not affected.

• Who is affected: Builders and developers working on residential projects, including condos.
• What changes: An exception to the required percentage-of-completion method for these contracts, with matching rules for the alternative minimum tax; updates terms to “residential construction contract” in the tax code.
• When: For contracts entered into after the law is enacted.