Sec. 3308. Modification of rules for long-term contracts
177 words·~1 min read·
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Paragraph
(1)of section 460(e) is amended to read as follows: Subsections (a), (b), and (c)(1) and
(2)shall not apply to any construction contract entered into by a taxpayer— who estimates (at the time such contract is entered into) that such contract will be completed within the 2-year period beginning on the contract commencement date of such contract, and whose average annual gross receipts for the 3 taxable years preceding the taxable year in which such contract is entered into do not exceed $10,000,000. For purposes of this paragraph, rules similar to the rules of paragraphs
(2)and
(3)of section 448(b) shall apply. . Section 460(e) is amended by striking paragraphs
(5)and (6). Section 10203(b) of the Revenue Act of 1987 is amended by striking paragraph (2). The American Jobs Creation Act of 2004 is amended by striking section 708. Section 460(e) is amended by striking paragraphs
(2)and
(3)and by redesignating paragraph
(4)as paragraph (2). The amendments made by this section shall apply to contracts entered into after December 31, 2014.