The exception covers residential contracts, with a three year test
What the document says“by striking "home construction contract" both places it appears and inserting "residential construction contract", and”
The section amends section 460(e) of the Internal Revenue Code of 1986 by replacing home construction contract with residential construction contract in both places in paragraph (1), and by inserting words applying a three-year rather than a two-year test in subparagraph (B)(i) for a residential construction contract that is not a home construction contract. It also strikes paragraph (4), renumbers paragraph (5) as (4), and fixes the cross reference that follows.
What the document actually says“by striking "home construction contract" both places it appears and inserting "residential construction contract", and”
The word home is taken out in two places. The word residential is put in. The rest of the phrase stays the same.
The new term is wider than the old one. A contract that is not for homes gets a three year test. The old test ran over two years.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.