This bill modifies the Internal Revenue Code of 1986 to expand an existing exception to the percentage of completion method of accounting for certain construction projects. It redefines the scope of eligible contracts by replacing the term "home construction contract" with the broader " residential construction contract " in relevant tax provisions. This change aims to provide greater accounting flexibility for a wider range of residential building projects, including those like condominiums. For residential construction contracts that do not meet the definition of traditional home construction contracts, the bill adjusts the qualifying criteria by extending a "2-year" period to a " 3-year " period for certain requirements. This modification allows a longer timeframe for these specific projects to qualify for the alternative accounting method. Furthermore, the bill ensures that this expanded exception for residential construction contracts is also applied when calculating the alternative minimum tax , and its provisions will apply to contracts entered into after the date of enactment.