To amend the Internal Revenue Code of 1986 to modify the construction contract exception to the percentage of completion method for determining income under long-term contracts.

Amends the Internal Revenue Code to revise requirements relating to the exemption for construction contracts from the percentage of completion method for determining income under long-term contracts. Extends the estimated completion time for such contracts from two to three years and increases the gross receipts eligibility limitation from $10 million to $25 million.