[Congressional Record Volume 163, Number 195 (Thursday, November 30, 2017)]
[Senate]
[Page S7649]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1808. Mr. SCOTT (for himself, Mr. Cruz, Mr. Inhofe, Mr. Cassidy, 
and Mr. Blunt) submitted an amendment intended to be proposed by him to 
the bill H.R. 1, to provide for reconciliation pursuant to titles II 
and V of the concurrent resolution on the budget for fiscal year 2018; 
which was ordered to lie on the table; as follows:

       Beginning on page 175, strike line 11 and all that follows 
     through page 177, line 15 and insert the following:
       (A) except as provided in subparagraph (B) or (C), include 
     such advance payment in gross income for such taxable year,
       (B) if the taxpayer elects the application of this 
     subparagraph with respect to the category of advance payments 
     for goods to which such advance payment belongs, the taxpayer 
     shall include such advance payment in the taxable year in 
     which the payment is included in gross income for purposes of 
     the taxpayer's applicable financial statements, or
       (C) if the taxpayer elects the application of this 
     subparagraph with respect to the category of advance payments 
     for goods described in paragraph (2)(C), or for services, to 
     which such advance payment belongs, the taxpayer shall--
       (i) to the extent that any portion of such advance payment 
     is required under subsection (b) to be included in gross 
     income in the taxable year in which such payment is received, 
     so include such portion, and
       (ii) include the remaining portion of such advance payment 
     in gross income in the taxable year following the taxable 
     year in which such payment is received.
       (2) Election.--
       (A) In general.--Except as otherwise provided in this 
     paragraph, the election under paragraph (1)(B) shall be made 
     at such time, in such form and manner, and with respect to 
     such categories of advance payments, as the Secretary may 
     provide.
       (B) Period to which election applies.--An election under 
     paragraph (1)(B) or (1)(C) shall be effective for the taxable 
     year with respect to which it is first made and for all 
     subsequent taxable years, unless the taxpayer secures the 
     consent of the Secretary to revoke such election. For 
     purposes of this title, the computation of taxable income 
     under an election made under paragraph (1)(B) or (1)(C) shall 
     be treated as a method of accounting.
       (C) Property includable in inventory not eligible for 
     election.--A taxpayer may not make an election under 
     paragraph (1)(B) for advance payments for the sale of goods 
     properly includible in inventory for which the taxpayer has 
     received substantial advanced payments and the taxpayer has 
     on hand goods of substantially similar kind and in sufficient 
     quantity to satisfy the agreement in the year the advance 
     payment is received.
       (3) Taxpayers ceasing to exist.--Except as otherwise 
     provided by the Secretary, the election under paragraph 
     (1)(B) shall not apply with respect to advance payments 
     received by the taxpayer during a taxable year if such 
     taxpayer ceases to exist during (or with the close of) such 
     taxable year.
       (4) Advance payment.--For purposes of this subsection--
       (A) In general.--The term ``advance payment'' means any 
     payment--
       (i) the full inclusion of which in the gross income of the 
     taxpayer for the taxable year of receipt is a permissible 
     method of accounting under this section (determined without 
     regard to this subsection), and
       (ii) which is for goods, services, or
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