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Bills/119th Congress · House

H.R. 2759

Introduced

Fair Accounting for Condominium Construction Act

Sponsor
RVern Buchanan· Florida
Introduced
April 9, 2025
Policy area
Taxation
Latest action
Referred to the House Committee on Ways and Means.April 9, 2025
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2759 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
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

April 9, 2025

Mr. Buchanan introduced 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 accounting for certain residential 
construction contracts.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 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.--Section 460(e) of the Internal Revenue Code of 
1986 is amended--
(1) in paragraph (1)--
(A) by striking ``home construction contract'' both 
places it appears and inserting ``residential 
construction contract'', and
(B) by inserting ``(in the case of a residential 
construction contract which is not a home construction 
contract, determined by substituting `3-year' for `2-
year' in subparagraph (B)(i))'' after ``the 
requirements of clauses (i) and (ii) of subparagraph 
(B) are not met'',
(2) in paragraph (5)(A), by striking ``paragraph (4)'' and 
inserting ``paragraph (3)'', and
(3) by striking paragraph (4) and redesignating paragraph 
(5) as paragraph (4).
(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.
<all>

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