To amend the Internal Revenue Code of 1986 to modify the construction contract exception to the percentage of completion method for determining income under long-term contracts.

Amends the Internal Revenue Code to revise requirements relating to the exemption for construction contracts from the percentage of completion method for determining income under long-term contracts. Extends the estimated completion time for such contracts from two to three years and increases the gross receipts eligibility limitation from $10 million to $25 million.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4058 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4058

 To amend the Internal Revenue Code of 1986 to modify the construction 
     contract exception to the percentage of completion method for 
             determining income under long-term contracts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 17, 2005

  Mr. Weller 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 modify the construction 
     contract exception to the percentage of completion method for 
             determining income under long-term contracts.

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

SECTION 1. MODIFICATIONS OF CONSTRUCTION CONTRACT EXCEPTION TO 
              PERCENTAGE OF COMPLETION METHOD FOR DETERMINING INCOME 
              UNDER LONG-TERM CONTRACTS.

    (a) Extension of Completion Period.--Clause (i) of section 
460(e)(1)(B) of the Internal Revenue Code of 1986 (relating to general 
exception for certain construction contracts) is amended by striking 
``2-year'' and inserting ``3-year''.
    (b) Increase in Size of Business.--Clause (ii) of section 
460(e)(1)(B) of such Code is amended by striking ``$10,000,000'' and 
inserting ``$25,000,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contracts entered into on or after the date of the enactment 
of this Act.
                                 <all>