96 STAT. 494
PUBLIC LAW 97-248—SEPT. 3, 1982 (2) CERTAIN CONSTRUCTION CONTRACTS.—
(A) IN GENERAL.—The term "extended period long-term contract" does not include any construction contract entered into by a taxpayer— (i) who estimates (at the time such contract is entered into) that such contract will be completed within the 3-year period beginning on the contract c o m m e n c e m e n t date of such contract, or (ii) whose average annual gross receipts over the 3 taxable years preceding the taxable year in which such contract is entered into do not exceed $25,000,000. (B) DETERMINATION OF TAXPAYER'S GROSS RECEIPTS.—For
26 USC 52.
Regulations.
purposes of subparagraph (A), the gross receipts of— (i) all trades or businesses (whether or not incorporated) which a r e under common control with the taxpayer (within the m e a n i n g of section 52(b)), and (ii) all m e m b e r s of any controlled group of corporations of which the tax p a y e r is a member, for the 3 taxable years of such persons preceding the taxable year in which the contract described in subparagraph (A) is entered into shall be included in the gross receipts of the tax p a y e r for the period described in subparagraph (A). The Secretary shall prescribe regulations which provide attribution rules that t a k e into account, in addition to the persons and entities described in the preceding sentence, taxpayers who engage in construction contracts through partnerships, joint ventures, and corporations. (C) CONTROLLED GROUP OF CORPORATIONS.—The term "con-
trolled group of corporations" has the m e a n i n g given to such term by section 1563(a), except that— (i) "more than 50 p e r c e n t " shall be substituted for " a t least 80 p e r c e n t " each place it a p p e a r s in section 15()3(a)(l), and (ii) the determination shall be made without regard to subsections (a)(4) and (e)(3)(C) of section 1563. (3) CONSTRUCTION CONTRACT.—The term
"construction
con-
t r a c t " means any contract for the building, construction, reconstruction, or rehabilitation of, or the installation of any integral component to, improvements to real property. (4) CONTRACT COMMENCEMENT DATE.—The
term
"contract
commencement date " means, with respect to any contract, the first date on which any costs (other than costs such as bidding expenses or expenses incurred in connection with negotiating the contract) allocable to such contract a r e incurred. (c) EFFECTIVE DATES; SPECIAL RULES. —
(1) IN GENERAL.—The modifications to regulations which a r e required to be made under paragraph s (1) and (2) of subsection (a) shall apply with respect to taxable years ending after December 31, 1982. (2) COST ALLOCATION.—
(A) IN GENERAL.—Any modification to Income Tax Regulation 1.451-3 made under subsection (a)(3) which requires additional costs to be allocated to a contract shall apply only to the applicable percentage of such additional costs incurred in taxable years beginning after December 31, 1!)82, with respect to contracts entered into after such date.
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