Page:United States Statutes at Large Volume 103 Part 3.djvu/308

 103 STAT. 2376 PUBLIC LAW 101-239—DEC. 19, 1989 for any taxable year before the 10-percent year is taken into account in the 10-percent year. "(ii) 10-pEBCENT YEAR.—The term '10-percent year' means the 1st taxable year as of the close of which at least 10 percent of the estimated total contract costs have been incurred. apply to all long-term contracts of the taxpayer which are entered into during the taxable year in which the election is made or any subsequent taxable year. "(D) COORDINATION WITH OTHEB PROVISIONS.— "(i) SIMPLIFIED METHOD OF COST ALLOCATION. — Th is paragraph shall not apply to any taxpayer which uses a simplified procedure for allocation of costs under para- graph (3)(A). "(ii) LOOK-BACK METHOD. —The 10-percent method shall be taken into account for purposes of applying the look-back method of paragraph (2) to any taxpayer making an election under tlus paragraph." (C) CONFORMINO ABfENDMENTS. — (1) Subsection (b) of section 460 is amended by striking para- graph (1) and by redesignating paragraphs (2) through (5) as paragraphs (1) through (4), respectively. (2) Paragraph (1) of section 4600biX as redesignated by para- y- graph (1), is amended— (A) by striking "paragraph (4)" and inserting "paragraph (3)" and (B) by striking "paragraph (3)'* and inserting "para- graph (2)". para- suDsec- 'Para^aphi (4) Subparagraph (A) of section 460(b)(4), as redesignated by paragraph (1), is amended— (A) by striking "paragraph (3)" each place it appears and inserting "paragraph (2)", (B) by striking paragraph (3)(B)" and inserting "para- graph (2)(Br. and (C) by strUdng "paragraph (3)(A)" and inserting "para- graph (2)(A)". (5) Paragraph (5) of section 460(e) is amended by striking so much of such paragraph as precedes subparagraph (A) and inserting the following: " (5) SPECIAL RULE FOR RESIDENTIAL CONSTRUCHON CONTRACTS WHICH ARE NOT HOME CONSTRUCTION CONTRACTS.— In the Case of any residential construction contract which is not a home construction contract, subsection (a) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1989) shall apply except that such subsection shall be applied—". 26 USC 460 note. (d) EFFECTIVE DATB. — (1) IN GENERAL. —Except as provided in paragraph (2), the amendments made by this section shall apply to contracts entered into on or after July 11, 1989. (2) BINDING BIDS.— The amendments made by this section shall not apply to any contract resulting from the acceptance of a bid made oefore July 11, 1989. The preceding sentence shall
 * \Q ELECTION. —An election under this paragraph shall

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