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
To amend the Internal Revenue Code of 1986 to provide an exception to percentage of completion method of accounting for certain residential construction contracts.
This Act may be cited as the
Fair Accounting for Condominium Construction Act.
Exception to percentage of completion method of accounting for certain residential construction contracts
Section 460(e) of the Internal Revenue Code of 1986 is amended—
in paragraph (1)—
home construction contract both places it appears and inserting
residential construction contract, and
(in the case of a residential construction contract which is not a home construction contract, determined by substituting after
2-year in subparagraph (B)(i))
the requirements of clauses (i) and (ii) of subparagraph (B) are not met,
in paragraph (5)(A), by striking
paragraph (4) and inserting
paragraph (3), and
by striking paragraph (4) and redesignating paragraph (5) as paragraph (4).
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)).
The amendments made by this section shall apply to contracts entered into after the date of the enactment of this Act.