I 111th CONGRESS 2d Session H. R. 6097 IN THE HOUSE OF REPRESENTATIVES August 10, 2010 Mr. Herger (for himself and Ms. Berkley) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to modify timing rules for determining gross income with respect to certain construction contracts.

1.

Short title

This Act may be cited as the American Job Builders Tax Reform Act of 2010.

2.

Indexing of small contractor threshold for construction contracts

(a)

Small contractor threshold To correct for prior inflation

Clause (ii) of section 460(e)(1)(B) of the Internal Revenue Code of 1986 is amended by striking $10,000,000 and inserting $40,000,000. (b)

Small contractor threshold indexed for inflation

Subsection (e) of section 460 of such Code is amended by adding at the end the following new paragraph: (7)

Inflation adjustment

(A)

In general

In the case of a taxable year beginning after 2009, the $40,000,000 amount in 460(e)(1)(B)(ii) shall be increased by an amount equal to— (i)such dollar amount, multiplied by (ii)the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2010 for calendar year 1992 in subparagraph (B) thereof. (B)

Rounding

If any amount as adjusted under subparagraph (A) is not a multiple of $100, such amount shall be rounded to the next lowest multiple of $100. . (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2009.

3.

Minimum tax treatment not to apply to construction contracts

(a)

In general

Paragraph (3) of section 56(a) of the Internal Revenue Code of 1986 is amended by striking the second sentence and inserting the following: For purposes of the preceding sentence, in the case of a construction contract (as defined in section 460(e)(4)), section 460(b)(1)(B) shall not apply.. (b)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2009.