Fair Accounting for Condominium Construction Act

Bill: 117-hr-4061
Sponsor: full_name: Rep. Pascrell, Bill, Jr. [D-NJ-9]
Introduced: 2021-06-22
Policy area: Taxation
Subjects: Accounting and auditing

Contracts and agency

Housing industry and standards

Tax administration and collection, taxpayers
Latest action: action_date: 2021-06-22
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2021-06-22
action_desc: Introduced in House
text: <p><b>Fair Accounting for Condominium Construction Act </b></p> <p>This bill exempts certain residential construction contracts from the requirement to use the percentage of completion method of accounting. The<em> percentage of completion method</em> is a tax accounting method in which the revenues and expenses of long-term contracts are recognized as a percentage of the work completed in a particular period.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 4061 IN THE HOUSE OF REPRESENTATIVES June 22, 2021 Mr. Pascrell (for himself and 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.

1. Short title This Act may be cited as the Fair Accounting for Condominium Construction Act . 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.