Fair Accounting for Condominium Construction Act

S. 1687 would amend federal tax law to provide an exception to the percentage of completion method of accounting for certain residential construction contracts. Currently, contractors building residential properties must use the percentage of completion method, which requires them to report income based on the percentage of work completed each year. This bill would allow certain residential construction contracts, particularly those for condominiums, to use alternative accounting methods instead. The change would apply to contracts entered into after the bill becomes law. The bill is currently under consideration by the Senate Committee on Finance and has not yet been voted on by the full Senate.