Bill · S. 1687· Senate(119-S-1687)
Fair Accounting for Condominium Construction Act
- Introduced
- 5/8/2025
- Last activity
- 5/8/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Todd Young
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, titled the "Fair Accounting for Condominium Construction Act," seeks to amend the Internal Revenue Code of 1986. It focuses on providing an exception to the percentage of completion method of accounting for certain residential construction contracts. The legislation specifically updates the definition of a home construction contract to a residential construction contract. It also adjusts specific timeframes within the code from 2-year to 3-year for these contracts. These changes affect how certain contracts are treated for the purpose of the Alternative Minimum Tax.
Yes· 3 of 6
Does this cut taxes for small businesses?+3
The bill adjusts accounting methods and timeframes for residential construction contracts, which can ease tax burdens for construction-related businesses.
Would business owners be better off under this?+3
The bill benefits construction business owners by adjusting the accounting period for residential contracts from 2 to 3 years.
Does this make it easier to run a small business?+2
The change in accounting timeframes from 2 to 3 years provides more flexible tax treatment for residential construction entities.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Accounting Adjustments for Residential Contracts: The bill substitutes '3-year' for '2-year' in subparagraph (B)(i) for any residential construction contract that is not a home construction contract (Section 2(a)(1)(B)). This change provides a different timeframe for accounting requirements for certain residential construction projects.
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Consistency in Tax Treatment: The bill updates the language regarding the Alternative Minimum Tax to refer to any "residential construction contract" rather than just "home construction contracts" (Section 2(b)). This ensures the exception applies to the newly defined residential construction contracts.
Potential Negative Impacts for People
- No specific negative impacts are explicitly detailed in the text of the bill.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Reduces Small Business Taxes+3Improves Small Business Support+2Improves Economic Growth+1
- Demographic And Interest Groups
- Good For Business Owners+3Good For Urban Residents+1
- Social Issues And Justice
- Improves Affordable Housing+1
- 5/8/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.