Fair Accounting for Condominium Construction Act

This bill changes how some housing construction projects handle their taxes. It makes an exception to the “percentage-of-completion” method of accounting for certain residential construction contracts. In plain terms, it aims to give builders of homes—like condos—more flexible tax timing during construction. The same exception would also apply when figuring the alternative minimum tax. These changes would only apply to contracts signed after the bill becomes law .

This could help residential builders better match their tax bills to when projects are actually finished, which may ease cash flow during multi-year builds like condominium projects .

• Key points

  Topic	What it means
  Who is affected	Residential builders and developers, including condominium projects
  What changes	An exception to using the percentage-of-completion accounting method for certain residential construction; aligned rules for the alternative minimum tax
  When it applies	For contracts entered into after the date it becomes law