Fair Accounting for Condominium Construction Act
This bill exempts certain residential construction contracts from the requirement to use the percentage of completion method of accounting. The percentage of completion method 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.
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.
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Fair Accounting for Condominium Construction Act
To amend the Internal Revenue Code of 1986 to provide an exception to percentage of completion method of accounting for certain residential construction contracts.
Fair Accounting for Condominium Construction Act
Rep. Pascrell, Bill, Jr.