Referred to the House Committee on Ways and Means.
The bill amends Internal Revenue Code section 460 to expand an exception to the percentage-of-completion accounting method from "home construction contracts" to broader "residential construction contracts," adjusts related timing language (changing a referenced multi-year period), updates the alternative minimum tax cross-reference, and applies these changes to contracts entered after enactment.
Progressives emphasize revenue loss and developer benefit concerns.
Relative to its intended legislative type, this bill attempts a narrow substantive change to the Internal Revenue Code by creating or expanding an exception to the percentage-of-completion accounting method for certain residential construction contracts and specifies an effective date.
The bill amends Internal Revenue Code section 460 to expand an exception to the percentage-of-completion accounting method from "home construction contracts" to broader "residential construction contracts," adjusts related timing language (changing a referenced multi-year period), updates the alternative minimum tax cross-reference, and applies these changes to contracts entered after enactment.
Low-to-moderate likelihood: narrowly focused and non-controversial content helps, but revenue uncertainty and need for broader package inclusion reduce standalone prospects.
Relative to its intended legislative type, this bill attempts a narrow substantive change to the Internal Revenue Code by creating or expanding an exception to the percentage-of-completion accounting method for certain residential construction contracts and specifies an effective date. The approach—direct statutory amendment—is appropriate for the type, but the actual statutory text as presented is fragmented and unclear in places.
Progressives emphasize revenue loss and developer benefit concerns.
These are examples from the analysis, not a ranked list of the most-affected groups.
Progressives emphasize revenue loss and developer benefit concerns.
Likely skeptical.
While simplifying accounting could aid some builders, this appears to broaden a tax accounting exception that may defer taxable income for developers.
Concern will focus on lost revenue and who benefits.
Generally receptive if this is a technical fix.
Views it as an administrative simplification that could reduce compliance costs, but wants clarity on fiscal impact and precise definitions.
Likely supportive.
Seen as a pro-business, pro-housing technical correction reducing regulatory burden and allowing private construction to operate with simpler tax rules.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Low-to-moderate likelihood: narrowly focused and non-controversial content helps, but revenue uncertainty and need for broader package inclusion reduce standalone prospects.
The bill has not accumulated any surfaced votes yet.
Progressives emphasize revenue loss and developer benefit concerns.
Low-to-moderate likelihood: narrowly focused and non-controversial content helps, but revenue uncertainty and need for broader package incl…
Relative to its intended legislative type, this bill attempts a narrow substantive change to the Internal Revenue Code by creating or expanding an exception to the percentage-of-completion accounting method for certain…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.