Fair Accounting for Condominium Construction Act

I 117TH CONGRESS 1ST SESSION H. R. 4061 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 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 ac- counting for certain residential construction contracts. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Fair Accounting for 4 Condominium Construction Act’’. 5 VerDate Sep 11 2014 23:07 Jul 09, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4061.IH H4061 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 4061 IH SEC. 2. EXCEPTION TO PERCENTAGE OF COMPLETION 1 METHOD OF ACCOUNTING FOR CERTAIN RES- 2 IDENTIAL CONSTRUCTION CONTRACTS. 3 (a) IN GENERAL.—Section 460(e) of the Internal 4 Revenue Code of 1986 is amended— 5 (1) in paragraph (1)— 6 (A) by striking ‘‘home construction con- 7 tract’’ both places it appears and inserting 8 ‘‘residential construction contract’’, and 9 (B) by inserting ‘‘(in the case of a residen- 10 tial construction contract which is not a home 11 construction contract, determined by sub- 12 stituting ‘3-year’ for ‘2-year’ in subparagraph 13 (B)(i))’’ after ‘‘the requirements of clauses (i) 14 and (ii) of subparagraph (B) are not met’’, 15 (2) in paragraph (5)(A), by striking ‘‘paragraph 16 (4)’’ and inserting ‘‘paragraph (3)’’, and 17 (3) by striking paragraph (4) and redesignating 18 paragraph (5) as paragraph (4). 19 (b) APPLICATION OF EXCEPTION FOR PURPOSES OF 20 ALTERNATIVE MINIMUM TAX.—Section 56(a)(3) of such 21 Code is amended by striking ‘‘any home construction con- 22 tract (as defined in section 460(e)(6))’’ and inserting ‘‘any 23 residential construction contract (as defined in section 24 460(e)(4))’’. 25 VerDate Sep 11 2014 23:07 Jul 09, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4061.IH H4061 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 4061 IH (c) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to contracts entered into after the 2 date of the enactment of this Act. 3 Æ VerDate Sep 11 2014 23:07 Jul 09, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H4061.IH H4061 kjohnson on DSK79L0C42PROD with BILLS