Bills · S 1687
IN COMMITTEE· 119TH CONGRESS
Senate BillS 1687Taxation
Fair Accounting for Condominium Construction Act
INTRO MAY 8· LAST ACTION MAY 8
READING
2MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it could change the financial landscape for a significant part of the residential construction industry. If it becomes law, it would provide tax relief, specifically in the form of tax deferral, to builders of multi-unit residential properties like condos. This means these companies would have more cash available during the construction phase, rather than having to pay taxes on estimated profits as the project progresses.
For voters, this could mean several things: It might encourage more development of condominiums and similar housing types, potentially increasing housing supply in some areas. This could make homeownership more accessible or stable for certain populations. However, it also means a delay in tax revenue for the federal government. If the bill doesn't become law, these builders would continue to use the more accelerated 'percentage of completion' accounting method, paying taxes earlier in the construction cycle, which some argue ensures a more consistent revenue stream for the government.
KEY PROVISIONS
4AI-extractedPROVISION 01
Expands the definition of contracts that can use a special accounting method by changing 'home construction contract' to 'residential construction contract'.
This broadens the types of construction projects, specifically including multi-unit residential properties like condominiums, that can qualify for tax deferral.
PROVISION 02
Modifies a specific rule for these newly included 'residential construction contracts,' changing a 2-year look-back period to a 3-year look-back period for qualifying for the special accounting method.
This change makes it easier for builders of condominiums and other non-single-family residential projects to qualify for the tax deferral.
PROVISION 03
Applies these changes to the Alternative Minimum Tax (AMT) calculation, ensuring consistency.
This prevents builders from having to use different accounting methods for regular tax versus AMT calculations, simplifying compliance.
PROVISION 04
The changes apply to all contracts entered into after the date the bill becomes law.
This sets a clear start date for when construction companies can begin to use the new accounting rules.
SPONSORSHIP
1 + 0
R· Indiana
YRS IN OFFICE
15
BILLS LED
65
ACTION TIMELINE
2 EVENTSMAY 8
Introduced in Senate
MAY 8
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 1687
Congress119th
StatusIn Committee
IntroducedMay 8, 2025
Last actionMay 8, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED MAY 8, 2025
Senate BillS 1687Taxation
Fair Accounting for Condominium Construction Act
INTRODUCED MAY 8, 2025· LAST ACTION MAY 8, 2025
PASSAGE CHANCES
—%
READING
2 min
COSPONSORS
0
COMPLEXITY
Moderate
