S. 1687

119th CONGRESS 1st Session

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 SENATE OF THE UNITED STATES · May 8, 2025 · Sponsor: Mr. Young · Committee: Committee on Finance

Table of contents

• S. 1687
  • SEC. 1. Short title
  • SEC. 2. Exception to percentage of completion method of accounting for certain residential construction contracts

SEC. 1. Short title

• This Act may be cited as the Fair Accounting for Condominium Construction Act.

SEC. 2. Exception to percentage of completion method of accounting for certain residential construction contracts

• (a) In general
  • of the Internal Revenue Code of 1986 is amended— Section 460(e)
    • in paragraph (1)—
      • by striking both places it appears and inserting residential construction contract, and
      • by inserting after ,
    • by striking paragraph (4) and redesignating paragraph (5) as paragraph (4), and
    • 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.