Section 1. Short title
This Act may be cited as the Fair Accounting for Condominium Construction Act.
(a) In general
Section 460(e) of the Internal Revenue Code of 1986 is amended—
(1) in paragraph (1)—
(A) by striking home construction contract both places it appears and inserting residential construction contract, and
(B) by inserting (determined by substituting 3-year for 2-year in subparagraph (B)(i) for any residential construction contract which is not a home construction contract) after the requirements of clauses (i) and (ii) of subparagraph (B),
(2) by striking paragraph (4) and redesignating paragraph (5) as paragraph (4), and
(3) in subparagraph (A) of paragraph (4), as so redesignated, by striking paragraph (4) and inserting paragraph (3).
(b) Application of exception for purposes of alternative minimum tax
Section 56(a)(3) of such Code is amended by striking any home construction contract (as defined in section 460(e)(6)) and inserting any residential construction contract (as defined in section 460(e)(4)).
(c) Effective date
The amendments made by this section shall apply to contracts entered into after the date of the enactment of this Act.