American Job Builders Tax Reform Act of 2010

American Job Builders Tax Reform Act of 2010 - Amends the Internal Revenue Code to: (1) increase from $10 million to $40 million the gross receipts threshold for determining whether a small contractor may adopt an accounting method for reporting income from a construction contract other than the percentage of completion method; (2) allow an annual inflation adjustment to such increased $40 million threshold amount, beginning after 2009; and (3) exempt construction contracts from alternative minimum tax rules for reporting income from long-term contracts under the percentage of completion accounting method.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6097 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 6097

 To amend the Internal Revenue Code of 1986 to modify timing rules for 
     determining gross income with respect to certain construction 
                               contracts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            August 10, 2010

Mr. Herger (for himself and Ms. Berkley) 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 timing rules for 
     determining gross income with respect to certain 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 ``American Job Builders Tax Reform Act 
of 2010''.

SEC. 2. INDEXING OF SMALL CONTRACTOR THRESHOLD FOR CONSTRUCTION 
              CONTRACTS.

    (a) Small Contractor Threshold To Correct for Prior Inflation.--
Clause (ii) of section 460(e)(1)(B) of the Internal Revenue Code of 
1986 is amended by striking ``$10,000,000'' and inserting 
``$40,000,000''.
    (b) Small Contractor Threshold Indexed for Inflation.--Subsection 
(e) of section 460 of such Code is amended by adding at the end the 
following new paragraph:
            ``(7) Inflation adjustment.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2009, the $40,000,000 amount in 
                460(e)(1)(B)(ii) shall be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2010' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--If any amount as adjusted under 
                subparagraph (A) is not a multiple of $100, such amount 
                shall be rounded to the next lowest multiple of 
                $100.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 3. MINIMUM TAX TREATMENT NOT TO APPLY TO CONSTRUCTION CONTRACTS.

    (a) In General.--Paragraph (3) of section 56(a) of the Internal 
Revenue Code of 1986 is amended by striking the second sentence and 
inserting the following:
``For purposes of the preceding sentence, in the case of a construction 
contract (as defined in section 460(e)(4)), section 460(b)(1)(B) shall 
not apply.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.
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