To amend the Internal Revenue Code of 1986 to provide that the percentage of completion method of accounting shall be required to be used with respect to contracts for the manufacture of property if no payments are required to be made before the completion of the manufacture of such property.

Summary

Amends the rules of the Internal Revenue Code concerning the required use of the percentage completion method of accounting for long-term contracts (Section 460) with respect to the special rule for manufacturing contracts to revise such special rule to require that a contract for the manufacture of property shall not be treated as a long-term contract unless: (1) such contract involves the manufacture of any unique item of a type which is not normally included in the finished goods inventory of the taxpayer or any item which normally requires more than 12 calendar months to complete (without regard to the period of the contract); and (2) any payment for the manufacture of such item is required to be made before the manufacture of such item is completed.

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3 official files

• Introduced in House (text)

  Introduced in House · EN · 7 January 2003

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• Introduced in House (PDF)

  Introduced in House · EN · 7 January 2003

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• Introduced in House

  summary · EN · 7 January 2003

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